Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

February 27, 2007 15:04 ET

Premium Samples 1,390 g/t Silver Over 3.15 Meters at San Pedro Analco, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 27, 2007) - Premium Exploration, Inc. (TSX VENTURE:PEM) (www.premiumexploration.com) is pleased to report results from its recent Phase I exploration program at its San Pedro Analco Project located in Jalisco State, Mexico. Preliminary sampling returned favourable grades and widths, including the following highlights:

- 1,390.7 g/t Ag and 0.085 g/t Au over 3.15 meters

- 534.5 g/t Ag and 0.787 g/t Au over 3.5 meters

- 535.3 g/t Ag and 0.195 g/t Au over 2.0 meters

- 316.1 g/t Ag and 3.44 g/t Au over 2.5 meters

San Pedro Analco hosts an extensive low sulphidation silver/gold epithermal system consisting of 1,136 hectares located within the Cinco Minas - San Pedro Analco mining district, 70 kilometers northwest of Guadalajara, Mexico's second largest city. At least five vein structures are present on the property over a strike length of two kilometers. Silver and gold with lesser amounts of zinc and lead are associated with quartz-calcite, calcite and quartz veins.

San Pedro Analco is a past producer, reportedly operating as recently as 1988, with production from five underground mines. There appears to be extensive mining, but production data is unavailable. From observations made during the initial mapping by Premium geologists there is little indication of any mining activity covering the 700m between the historic mines to the north (Alpes, Tesoral, Espranza) and the historic mines to the south (Animas, Cerrillos), or that any historic exploration activity was conducted beyond the existing mine workings. Therefore, it appears that there is approximately 700 meters of undeveloped and unexplored potentially mineralized structure between the mines, as well as down dip extensions below the historic mines.

A preliminary sampling and mapping program was conducted in four of five of the larger mines. A total of 1,600m of mine workings were mapped from which 71 chip samples and nine grab samples (from ore chutes) were collected from five mines. For the four mines mapped, the results for samples with greater than 100 g/t Ag and/or 1.0 g/t Au are presented in the tables below. Thirty-seven of the 80 samples collected returned elevated gold and/or silver values.



LOS ALPES MINE
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Sample Width
Sample Type (m) Au (g/t) Ag (g/t) Pb (ppm) Zn (ppm)
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336916 CHIP 0.8 1.851 284.3 1493 6649
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336899 CHIP 3.5 0.787 534.5 2008 5365
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336897 CHIP 2.9 0.554 297.7 1455 865
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336901 CHIP 1.8 0.335 270.0 4716 9683
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336917 CHIP 2.8 0.905 228.7 2533 6416
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336902 CHIP 2.1 0.145 215.4 3924 6532
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336898 CHIP 1.5 0.935 202.3 2648 1225
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336904 CHIP 1.6 0.112 125.7 17000 13300
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336915 CHIP 1.7 0.095 105.6 1364 300
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EL CERRILLO MINE
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Sample Width
Sample Type (m) Au (g/t) Ag (g/t) Pb (ppm) Zn (ppm)
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336921 CHIP 1.7 0.510 300.3 622 1866
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336924 CHIP 1.4 0.615 347.2 1151 2804
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336925 CHIP 2 0.175 326.2 767 2705
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336927 CHIP 1.6 3.119 265.8 181 376
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336928 CHIP 2.5 3.440 316.1 11600 20800
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336932 CHIP 3 0.344 110.8 604 1501
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336934 CHIP 1.6 0.230 265.0 1076 4546
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LA ESPERANZA MINE
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Sample Width
Sample Type (m) Au (g/t) Ag (g/t) Pb (ppm) Zn (ppm)
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336856 CHIP 4 0.344 125.0 608 1046
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336858 CHIP 2.6 0.130 109.4 1117 1652
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336859 CHIP 1.9 0.035 182.7 277 518
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336862 CHIP 2 0.195 535.3 4396 6181
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336863 CHIP 2.5 0.010 266.6 1430 1724
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336865 CHIP 3.15 0.085 1390.7 2171 5080
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336867 CHIP 1.3 0.265 451.7 2051 3662
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336871 CHIP 2.3 0.085 223 1147 1694
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336872 CHIP 1.8 0.175 158.7 1570 4653
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336873 CHIP 2.1 0.65 184.2 1685 1206
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EL TESORAL MINE
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Sample Width
Sample Type (m) Au (g/t) Ag (g/t) Pb (ppm) Zn (ppm)
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336876 CHIP 2 0.411 126.7 1214 786
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336877 CHIP 1.6 0.430 100.7 1281 646
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336879 CHIP 1 1.495 68.3 550 236
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336881 CHIP 2.1 0.095 289.1 832 1681
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336882 GRAB 0.080 137.3 930 612
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336883 CHIP 2.1 0.175 116.8 590 2601
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336885 GRAB 0.565 116.1 426 1007
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336888 GRAB 0.343 168.7 1165 1215
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336889 GRAB 0.466 128.4 1184 1071
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339501 CHIP 3.0 1.44 153 702 1266
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339502 CHIP 1.234 169 554 967
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Premium is currently rehabilitating roads to provide access to both surface and subsurface workings. The next phase of exploration will include mapping and surface sampling, underground sampling and mapping to prepare for a geophysical survey to map structures at depth, followed by drilling to test the extent of mineralization outward from the mines, as well as to test new areas.

The project has excellent infrastructure with road access, and a high voltage transmission line less than one kilometer from the property. Premium has an option to earn 100% of 1,136 hectares by making staged cash and share payments and exploration expenditures over three years.

Quality Control and Assurance

Samples were collected under the direct supervision of contract geologists in the employ of Premium and the samples were kept under direct control of the geologists until shipment to Inspectorate Labs in Durango, Mexico for sample preparation. All analyses were completed by Inspectorate Labs of Sparks, Nevada, utilizing industry standard procedures. Inspectorate is a highly respected ISO 9002 Certified lab. For gold determinations, a 30 g split is used to perform a 1 AT (29.17 g) fire assay, with an Atomic Absorption finish. For trace level elements determinations for silver and base metals, a 0.5 g sub-sample is used to perform a 30 elements aqua regia digestion and ICP - AES (Inductively Coupled Plasma - Atomic Emission Spectrometer) analysis. Samples returning over detection limit for silver (200 ppm) were reanalyzed by fire assay.

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.

About Premium Exploration, Inc.:

Premium Exploration, Inc. is a precious metals exploration company focused on exploration in North America. The Company is listed on the TSX Venture Exchange and has assembled an innovative and experienced management and advisory team who are committed to the long-term success of the Company. Premium's goal is to discover precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. Current holdings are in Mexico and the USA. To maximize the possibility of realizing this goal, the company's exploration team continues to review early-stage projects located within under-explored precious metal belts that host multi-million ounce deposits. By acquiring prospects internally and financing some of them through joint venture partners, the company is able to maximize the potential for discovery while mitigating risk and increasing shareholder value.

More information can be found on our website at http://www.premiumexploration.com or on the SEDAR website at http://www.sedar.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 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. 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.

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

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