Premium Exploration Inc.

Premium Exploration Inc.

April 03, 2007 13:34 ET

Premium Exploration Provides Update on Assessment of Dos Amigos Gold-Silver-Base Metal Project

Completes Second Round of Exploration at Past Producer San Pedro Analco Silver-Gold-Zinc Project in Mexico's Sierra Madre

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) ( is pleased to provide an update on the due diligence being performed on the Dos Amigos Project in Nayarit State, Mexico, and that a second round of mapping and sampling, including sampling of mines not previously sampled and areas along structures between mines, has been completed at the past-producing San Pedro Analco property in Jalisco State. Seventy-two samples were collected at San Pedro Analco.

At Dos Amigos, a select grab sample from a prospect stockpile at the Tobos working returned 8.3 g/t gold and 15,276 g/t (445 oz./ton) silver as well as 7.2% copper, 4.5% lead and 17.2% zinc. This is an indication of high grade polymetallic silver mineralization on the property. Based on the positive results from the current mapping and sampling, Premium will conduct a second sampling program in April. The second phase of exploration will be designed to determine the extent of the high grade polymetallic mineralization, as well as testing the potential for bulk-tonnage mineralization associated with the quartz veining and extensive clay alteration observed on the property.

The Dos Amigos Project covers four kilometers of strike length along a prominent N-S structure and the intersection of a NW structure that is observable on Google Earth. The structures have provided conduits for the mineralizing solutions as evidenced by the quartz veining and adjacent argillic alteration. The structural lineament appears to connect La Colorada prospect in the north (Z13 UTM 478400/2527685 WGS 84) to Tobos prospect pit, 1500 meters south. The San Rafael historic working, which exploited a quartz vein, is located approximately three kilometers ESE of the La Colorada vein. Another prospect, Tamsole, is located 3000 meters SW of La Colorada and 5000 meters WSW of the San Rafael prospect.

Sample results have been received for all 42 samples collected to date. Thirteen of the samples returned greater than 0.5 g/t gold and/or 200 g/t silver (see table below). Preliminary results for seven of these samples were released in a previous release dated February 21, 2007.

Sample Au Ag
true ppm equals ppm equals Bi Cu Mo Pb Zn
width Area g/t g/t ppm ppm ppm ppm ppm
1.80 La Colorada 7.270 25.5 less 14 1 172 55

2.00 La Colorada 4.040 8.2 less 11 2 121 43

2.00 La Colorada 2.535 17.9 3 93 8 862 151

2.00 La Colorada (1.920) 8.2 0 97 4 622 400

2.00 La Colorada (1.577) 80.0 12 907 4 4993 559

1.50 La Colorada 1.140 4.1 less 69 less 419 193
than than
2 1

0.25 La Colorada 0.735 43.6 less 581 3 4430 317

2.40 San Rafael 2.664 78.4 0 443 10 827 334

1.00 San Rafael 2.570 122.3 3 39 8 91 34

1.30 San Rafael 1.280 22.6 3 177 10 719 67

grab Tamsole 0.719 24.5 0 64 16 59 14

grab Tobos 8.297 15276.8 483 72000 474 45300 17200

grab Tobos 0.220 (258.4) 17 6134 204 5810 4750

Gold and silver data in brackets () are Fire Assay (30g) Gravimetric Finish analyses; all other gold and silver analyses by Fire Assay (30g)/ Atomic Absorption finish; other metals analyzed by ICP - Induced Coupled Plasma methods.

Under the terms of a letter of intent for Dos Amigos, the Company has the right earn a 100% interest in 3,230 hectares (7,985 acres), and has the exclusive right to a 120 day due diligence period to assess the project and enter into a definitive acquisition agreement.

Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

More information can be found on our website at or on the SEDAR website 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 involve 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 files 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. Information contained in this news release includes information about adjacent properties on which we have no right to explore or mine. We advise investors in the United States that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. United States investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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