Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

May 26, 2009 20:13 ET

Premium Exploration Private Placement Oversubscribed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2009) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium") reports that it anticipates its previously announced private placement may be oversubscribed by approximately $160,000 (1,600,000 units). The original expectation was to raise up to $500,000 (1,500,000 units).

The offering will now raise approximately $660,000 through a non-brokered private placement of 6,600,000 Units (the "Unit") at $0.10 per Unit. Each Unit will consist of one (1) Common Share (a "Share") and one (1) non-transferrable Warrant. Each Warrant will be exercisable for a period of two years at a price of $0.20 in the first year and $0.50 in the second year.

The proceeds from the placement will be used for production permitting on the Buffalo Gulch gold project, exploration drilling on the high grade gold zone at the Friday-Petsite property; an NI 43-101 Inferred gold resource 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); and general working capital. The funds raised will include up to a 10% finder's fees in cash or shares.

The proposed amendment is subject to TSX Venture Exchange approval.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique explorer and developer of precious metals projects with significant potential for near-term production and growth. Premium's extensive portfolio holds advanced stage gold, silver and platinum group metals projects located in the USA and Mexico. Listed on the TSX Venture Exchange (TSX VENTURE:PEM), Premium has attracted an innovative and successful team of executives, advisors, metallurgists, geological and mining engineers, and consultants who are committed to achieving our plan of discovering and developing projects to production; some of the most profitable stages of exploration.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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