Premium Exploration Inc.

Premium Exploration Inc.

August 06, 2009 15:05 ET

Premium Exploration Intersects 13.78 g/t Au Over 5.73 Meters at Friday-Petsite Gold Project in Central Idaho

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2009) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to announce that results have been received from the first three holes from the Phase-One drill program on its Friday-Petsite Gold Property. The assays confirm continuity of the high-grade gold mineralization associated with the Orogrande Shear Zone "OSZ" and extend its strike length by 50%, from 350 meters to 525 meters, in this Phase-One seven hole drill program.

Highlights include:

- PFR2009-01: 5.02 g/t gold over 17.92 meters including
13.78 g/t gold over 5.73 meters
35.55 g/t gold over 1.58 meters

- PFR2009-02: 1.77 g/t gold over 39.56 meters including
3.37 g/t gold over 8.17 meters

- PFR2009-03: 1.00 g/t gold over 8.95 meters including
1.49 g/t gold over 4.27 meters

The drill program consisted of 7 HQ core holes and assay results have been received for the first three drill-holes: PFR2009-01, PFR2009-02, and PFR2009-03. Results have also been received for PFR2009-5 but two intervals are over-limit (greater than 10 g/t) by "Fire Geochem" ACME Analytical Laboratories method 3B, and final results will be reported once the metallic screen/sieve analysis for coarse gold has been completed.

Del Steiner (President) stated that, "Although all assays have not yet been received, I am very excited that the new high-grade gold model for the OSZ developed by Premium's geologists has been confirmed by this first stage of drilling. Not only have the current results extended the strike length of the existing 531,890 ounce gold resource to the north and the south, excellent near-surface values have been intercepted and the mineralization remains open to depth. The additional geologic information confirms there is room for further resource growth."

The current 531,890 oz inferred resource lies within a 1,000 foot (304 meter) gold in soil anomaly, while the contiguous gold in soil anomaly continues for an additional 4,000 feet (1220 meters) to the south greatly that is relatively unexplored, increasing the potential resource target. Please click for a map of the results and soil geochemical anomalies.

The program was designed to test continuity of the Orogrande Shear Zone (OSZ) along strike to the north and south of the existing resource and to provide minor in-fill drilling for information that will be used to reassess the NI 43-101 compliant resource.

PFR2009-01 returned 5.02 g/t gold over 17.92 meters, including 13.78 g/t gold over 5.73 meters and 35.55 g/t gold over 1.58 meters. These intercepts contain two outstanding intercepts of 33.45 g/t gold over 0.4 meters and 153.71 g/t gold over 0.25 meters. PFR2009-1 is located 25 meters to the north of the previously reported high-grade hole PC-08 which returned 7.33 g/t over 16.7 meters, including 52.05 g/t over 1.6 meters.

PFR2009-02 returned 1.77 g/t gold over 39.56 meters, including 3.37 g/t gold over 8.17 meters. There is also a 0.4 meter over-limit intercept that assayed greater than 10 g/t for which the metallic screen/sieve analysis for coarse gold has not yet been received. PFR2009-2 is located 25 meters to the north of PFR2009-1.

PFR2009-03 returned 1.00 g/t gold over 8.95 meters, including 1.49 g/t gold over 4.27 meters. PFR2009-3 is located 25 meters to the north of PFR2009-2. This hole confirms the northern extension of the bulk tonnage gold mineralization associated with the OSZ.

The geologic model as developed by Premium geologists and consultants predicted continuity of the OSZ to the north and south with a steep easterly dip to the mineralization as opposed to a westerly dip inferred by previous operators. The results of the first three holes in Premium's Phase 1 drill program have confirmed continuity of gold mineralization along strike to the north of the present resource by 75 meters with a steep easterly dip of -65 to -75 degrees. Assays are pending for PFR2009-4, PFR2009-5, PFR2009-6, and PFR2009-7, all of which have been designed to test continuity of mineralization to the south save PFR2009-5, which is an-infill hole providing information for re-assessing the NI 43-101 compliant resource.

These results confirm the existence and continuity of a north-south striking high grade gold zone located within the bulk tonnage NI 43-101 compliant resource estimate of 531,890 troy ounces, contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.017 oz/ton). The current drilling extends the mineralization beyond the resource boundaries and once all of the assays are received the resource estimate will be re-calculated to incorporate the increase in strike length as well as to better define the high grade gold zone.

Hole ID From(m) To (m) Length (m) Au (g/t)
PFR2009-01 0.00 37.70 37.70 0.56
including 23.16 30.33 7.16 1.20
55.84 73.76 17.92 5.02
including 63.58 69.31 5.73 13.58
including 63.58 65.17 1.58 35.55
PFR2009-02 1.52 41.09 39.56 1.77
including 32.92 41.09 8.17 3.37
114.60 116.28 1.68 1.35
PFR2009-03 0.91 9.85 8.95 1.00
including 0.91 5.18 4.27 1.49
Note: True Widths are estimated to be between 75% and
100% of the drilled interval

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described the Company's News Release of July 9th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates and blank samples are submitted, with the samples shipped to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). The ongoing 2009 exploration program is directed by Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101. Mr. Struck prepared, and approves of the content of this release.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. 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, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at

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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