Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

May 11, 2011 14:07 ET

Premium Exploration Receives $1,912,500 for Exploration of 30 km Idaho Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to announce that the Company has received gross proceeds of $1,912,500 from the exercise of 6,375,000 warrants.

"343,000 indicated and 780,000 inferred gold ounces are hosted in 800 meters of structure at the Idaho Gold Project. This represents less than 1% of the +30 km of structure present on the property demonstrating tremendous potential for our shareholders. The $1,912,500 provides additional capital to unlock shareholder value for the +25,000 drill program currently underway," stated President Del Steiner.

The warrants were issued in connection with a private placement offering in September 2009 which closed in two tranches. The first tranche closed October 23, 2009 and the second tranche closed November 12, 2009. All warrants from the first tranche have been exercised.

The proceeds from the warrant exercise will supplement the Company's current working capital position and will be used to fund exploration work on Premium's flagship property, the Idaho Gold Project.

The Idaho Gold Project hosts 343,000 Indicated oz Au (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 Inferred oz Au (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) resources along the Friday Zone and remains open along strike and depth.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone ("OSZ") in North-Central Idaho, USA; the 4th largest gold producing country in the world. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. 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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