Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

September 08, 2010 16:00 ET

Premium Exploration Increases Land Position After Identifying Multiple Geophysical Targets with Friday-Petsite Signature upon Completion of Airborne Survey

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Premium Exploration Inc. (TSX VENTURE:PEM) (the "Company") is pleased to announce the completion of a 180 sq-km geophysical survey over the 28 Km Orogrande Shear Zone, "OSZ". Multiple targets with geophysical signatures similar to that of the Friday-Petsite NI 43-101 resource have been identified along the OSZ, resulting in the expansion of the Deadwood claim block with the addition of 134 claims, covering ~11 sq-km which covers the new targets.

"Defining the overall footprint of the Orogrande Shear Zone with the airborne geophysics is surprising in its implications. It confirms that the OSZ is a significant regional structure consisting of numerous targets. This confirmation coupled with the structural control of mineralization are all characteristics shared with the Carlin Trend of Nevada," said Michael Ostenson, VP Exploration.

"Applying experience from developing Carlin-Style deposits has been key to expanding the Friday-Petsite resource. Strategically placed drill-holes along the Friday-Fault have been crucial to the success of the project. If the Friday-Petsite project, a mere 4% of the 28 Km OSZ, is an example of the potential tenor of these new targets along the shear zone, then the implications are noteworthy and confirm that Premium is on track in achieving its goal of developing a new mining district in North America."

3,000 meters of OSZ strike length has been identified with the ground magnetic geophysical survey completed in Phase-Three. The data correlates distinctly with the 750-meter segment of the Friday-Fault defined through drilling, equipping Premium with an extraordinary tool in the ongoing resource expansion. Please click http://bit.ly/PEMPhase3GrndMag for the Friday-Fault/Ground Mag Map.

The capability to identify the Friday-Fault through magnetic data, led Premium to employ Fugro Airborne Surveys Corporation for the flight of a 180 sq-km DIGHEM Magnetic and Electro-Magnetic Survey over the entire length of the inferred Orogrande Shear Zone. Please click http://bit.ly/PEMPhase3Airborne for the Airborne Geophysical Survey Coverage Map.

Preliminary raw data confirms the presence of the OSZ, and links Buffalo Gulch, Deadwood, Aurum, and the Friday-Petsite projects, and its regional extent.

Early interpretation of the raw data shows an apparent cross-cutting fault in the Friday-Petsite zone. Upon review of the data along strike of the OSZ, Premium geologists have inferred multiple new targets with similar cross-cutting features.

The survey was completed on August 22, and final post-processed results are expected to be early to mid October.

2010 Exploration Update:

  • 6,173 meters, of the 10,000 meter Phase-3 drill program at the Friday-Petsite project have been completed in 19 drill-holes; six of these holes have been released to date (http://www.premiumexploration.com/wp-content/uploads/2008/05/Phase_III_Drill_Results.pdf);
  • 1,500 meters of OSZ strike length was surveyed with Ground Magnetic Physics at the Buffalo Gulch project;
  • 3,700 line-km Fugro DIGHEM Geophysical Airborne Survey was completed over 180 sq-km.

The primary focus of the Phase-Three drill program at the Friday-Petsite is the Lower Block resource expansion through delineation of the main mineralized structure, the east bounding Friday-Fault. Premium is maximizing drill footage with large steps out's north and south along strike and the Company continues to identify outstanding mineralization. Phase-Three drilling will step out approximately 500 meters north and 500 meters south of the previously reported 300 meter strike length of the new Lower Block (http://www.premiumexploration.com/wp-content/uploads/2008/05/Phase_III_Strike_Length_Ticker_Section_Lines.pdf).

The second phase of geophysics in the Phase-Three exploration program will include a dipole-dipole Induced Polarization (IP) survey over the Deadwood and Buffalo Gulch projects. IP surveys determine the resistivity/conductivity and chargeability of local geology. Chargeability is influenced by the presence of disseminated sulphides, which are associated with the gold mineralization. These two IP surveys will be conducted over strategic areas with the new airborne survey, historic IP, resistivity, and soil geochemical anomalies. The surveys are designed to provide a mineralized depth estimate up to 1000 feet, which is useful in drill targeting.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company's News Releases of July 9th, 2009 and December 29th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold.

Qualified Person

The 2010 Phase-Three exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. Mr. Ostenson is a Qualified Person as defined by NI 43-101. Mr. Ostenson prepared, and approves of the content in this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) explores and develops North American gold, silver, Platinum and Palladium. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho which includes the Friday-Petsite NI 43-101 inferred gold resource hosted in 15.17 million tones averaging 1.1 g/t gold at a cut-off grade of 0.5 g/t, as well as a PGM exploration project in Montana. For additional information, please visit us at www.premiumexploration.com.

This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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