Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

June 10, 2009 14:14 ET

Premium Exploration Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2009) - Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to provide the following corporate update. The Company's focus for the foreseeable future is the exploration and development of the gold mineralization along the Orogrande Shear Zone in Idaho beginning with the Friday-Petsite project. During this development, Premium will also advance the PGM Chrome Mountain project in the Stillwater Complex, Montana, USA, and the San Pedro Analco project, in Jalisco, Mexico, both of which will be advanced in 2009.

In its initial stage of growth, Premium developed a diverse property portfolio with projects ranging from grassroots exploration to advanced stage development opportunities. The Company has identified key precious metals projects that meet the Company's investment criteria. Ongoing growth for the Company will continue by utilizing its successful strategy to explore and develop key projects that demonstrate significant potential for near-term production and growth of resources. This strategic plan is intended to maximize the Company's ability to rapidly create shareholder value.

The milestone of growing both the Management and Technical Teams was achieved in Q2-2009 with the addition of Wilf Struck, P.Eng., and Mike Ostenson (experienced precious metals geologist) to the team. Our experienced team will conduct precious metals exploration while advancing projects to production.

Goals for Q3-2009 and Q4-2009 are as follows:

1. Idaho

Management identified a high-priority opportunity to expand the open-ended high-grade gold zone that has been identified over a 350 meter (1,148 ft) strike length to date and located within the large and potentially open-pittable Friday-Petsite NI 43-101 Resource.

The drilling company for the planned 800-meter drill program has been selected and is scheduled to start June 15th. The drill program is designed to delineate the zone along strike and down dip with a likely addition to the high grade portion of the resource. The second goal of the drill program is to provide additional geological data to assess the feasibility of a potential underground development.

The project has defined resources based on core and reverse circulation drilling, with much of the resource located on patented ground. This is an important distinction, as the permitting process can be expedited. There is also substantial exploration potential associated with a contiguous 4,000 ft of gold soil geochemistry anomaly extending south of the NI 43-101 resource envelope.

2. Montana

In conjunction with the drill program in Idaho, Premium is also reviewing exploration results to date on its Chrome Mountain project in the Stillwater Complex, Montana, USA. Exploration programs from 2006 to 2008 included the drilling of 19 holes and over 2 km of soil geochemistry that identified an extensive zone of platinum, palladium and rhodium mineralization. It has been concluded that the broad and laterally extensive PGM soil anomalies were formed by the same type of processes that formed the giant Platreef disseminated PGM-Cu-Ni deposits in South Africa. An exploration program is currently being designed to follow up on the discovery of the new Platreef exploration model.

Premium's joint venture partner on the project, Beartooth Platinum Corp., has been merging with a private company, Kria Resources, since November 2008. Although the merger has obtained shareholder approval, the combination is still not complete, nor has it been accepted by regulation authorities. Premium is closely monitoring the situation and will provide timely updates upon any new developments.

3. Mexico

The Company acquired a number of prospective properties in Mexico which met Premium's initial investment criteria. Upon completion of a review of historic data and on-site property examinations, the Company elected to drop the Cucurpe, Dos Amigos, Rosamorada and La Lupe properties. The properties had ongoing work and property payment commitments and based on the results to date, further work was not justified.

An extensive exploration program was conducted on the Nueva Galica project which hosted highly anomalous gold and silver mineralization and was evaluated to determine the extent of its potential. The property underwent mapping, sampling, and drilling utilizing the Company's own portable diamond drill. Preliminary sampling results returned favorable mineralization assays. However, results from the preliminary 1800-meter Phase-One drill program did not confirm continuity of the mineralization. The drilling conditions were extremely difficult due to the brecciated, sheared and broken nature of the mineralized zones, which consisted of quartz fragments in a clay matrix. This resulted in poor core recovery, ranging from 0 to 75%. Poor core recovery impacted the reliability of the assay results, due to significant loss of fine sulphides which appeared to host the gold and silver mineralization. Despite the implementation of various techniques and controls to minimize core losses and provide accurate evaluations of the mineralized zone, the Company had inconsistent results. Due to increasing work commitments and payments, the Company elected to drop the property.

The San Pedro Analco property is an historic underground silver mine located within the Cinco Minas - San Pedro Analco mining district, 70 kilometers northwest of Guadalajara. San Pedro Analco hosts an extensive low sulfidation silver/gold epithermal system with at least five vein structures on the property. The Project has excellent infrastructure, including road access, ample water available, and a high voltage transmission line less than one kilometer from the property. The mine reportedly operated until the mid 1980's.

After production was shut down due to low silver prices, further drilling was conducted by the operator. Premium's new geological team will review the results of the reported 86 holes of drilling as well as a historic independent engineering report commissioned by the previous operator. This will allow our new geological team to better understand the property and formulate future exploration programs. Premium anticipates active exploration to begin on the project in Q4-2009.

Qualified Person

Mr. Wilf Struck, P.Eng., is the Qualified Person for the technical information in the news release under National Instrument 43-101.

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.

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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