Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

March 06, 2008 11:55 ET

Premium Exploration Samples up to 5,337.5 g/t Silver on New Acquisition in Durango, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2008) - Premium Exploration, Inc. (TSX VENTURE:PEM) is pleased to announce the acquisition of the "La Lupe" property, located in the Sierra Madre of western Durango. Preliminary sampling by Premium returned significant results, including 0.90 meters of 8.4 g/t gold, 5,337.5 g/t silver, 2.91% lead and 3.92% zinc, and 1.60 meters of 11.8 g/t gold and 35.6 g/t silver.

Highlights:

- 8.37 g/t gold, 5,337.5 g/t silver, 2.91% lead and 3.92% zinc over 0.90 meters

- 2.58 g/t gold, 102.8 g/t silver, 1.10% lead and 2.29% zinc over 0.90 meters

- 11.79 g/t gold, 35.6 g/t silver, 0.81% lead and 0.09% Zinc over 1.60 meters

- 0.26 g/t gold, 412.8 g/t silver, 0.78% lead and 0.97% zinc over 0.65 meters

- 4.53 g/t gold, 47.6 g/t silver, 0.05% lead and 0.01% zinc over 0.75 meters

(All samples are continuous rock chips and represent true widths; click the following URL for a complete table of results "Lupe Rock Chip Samples Table One": http://media3.marketwire.com/docs/Lupe%20Table.pdf)

Two samples were taken from two parallel veins separated by 15 m in the historic Santo Mino Mine, which consists of approximately 140 m of accessible underground workings. One sample returned 0.90 meters of 2.58 g/t gold, 102.8 g/t silver, 1.10% lead and 2.29% zinc and the other 0.90 meters of 8.37 g/t gold, 5,337.5 g/t silver, 2.91% lead, 3.92% zinc. Both samples are continuous chips across the ceiling of the underground tunnels. An exploration program of detailed geological and structural mapping, surface sampling, and detailed sampling of the Santo Nino mine workings is underway.

Mineralization at La Lupe consists of gold, silver and polymetallic mineralization within quartz veins and stockwork zones. Exposures on surface and underground show sub-vertical quartz veins and stringers up to 1.90m wide with strike lengths of 25 to 340 meters as mapped by the Geological Survey of Mexico. The veins, stringers and stockwork are present over an area of at least 400 by 500m. Thirty-two samples of veins, stockwork and altered wallrock adjacent to or between veins were taken by Premium from surface and small workings at La Lupe. Gold values ranged from insignificant to 11.8 g/t gold, with 12 samples returning greater than 1.0 g/t or greater gold. Silver ranged from zero to 5337.5 g/t, with six samples returning greater that 100 g/t silver.

World-class deposits in the Sierra Madre region of western Durango include the richest underground gold mine in Mexico, Penoles' La Cienega, 41 km east-northeast of the La Lupe property. One hundred and twenty-five km southeast of La Lupe is Goldcorp's San Dimas gold-silver deposit, where ore is contained in veins which vary from a fraction of a centimetre in width to over 15 metres, but average 2.0 metres. Great Panther Resources' Topia Mine, located 30 km northeast of La Lupe, is using a "resuing method" of mining due to the nature of the narrow, very high-grade veins. Resuing mining methods significantly reduce dilution, such that the grades reported from drilling and sampling are very close to head grades reported at the plant.

La Lupe is accessed by paved and gravel roads from Culiacan, Sinaloa. A paved highway and high-tension power line, which will connect Culiacan and Durnago via La Cienega, is scheduled to be completed in 2009 and will cross the margin of the La Lupe claim. The property consists of a single claim of 900 has.

Premium holds an option to earn 100% of the La Lupe property through its 100%-owned Mexican subsidiary, Compania Minera Zorro de Plata, S.A. de C.V., by making staged cash payments totalling $1,100,000USD over two years. The option agreement also includes a payment of $500,000 upon receipt of a bankable feasibility study, and of $1,000,000 upon commencement of commercial production, with no NSR. A finder's of $10,000 USD is payable to a second party for the transaction.

Qualified Person

Ms. Nancy Reardon, M.Sc., P.Geo., VP Exploration of Premium Exploration Inc., is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a precious metals explorer specializing in prospect generation in Mexico and the United States. Utilizing a joint venture strategy, Premium maintains interests and royalties in multiple projects, thus maximizing shareholder exposure to mineral discovery. Premium's portfolio currently holds projects in various stages of exploration, including grassroots projects in Mexico, and advanced-stage exploration project in Montana, USA, and a 43-101 resource in Idaho, USA which is undergoing permitting for production in 2009. Currently, Premium is advancing the Chrome Mountain platinum group metal project in Montana, USA, and the Buffalo Gulch gold deposit in Idaho, USA, while exploration and negotiation of joint ventures and acquisitions in Mexico and Idaho are in progress.

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 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.

Contact Information