17:27 EDT Monday, May 16, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or "the Company") is pleased to announce over-limit silver results for previously released Phase-Three drill-hole PFR2010-22 (see release Feb 8th, 2011). PFR2010-22 returned 3 elevated silver assays grading 153, 100, and 93 g/t Ag in its new Monday Zone discovery along the Idaho Gold Project, 100% owned by Premium.

"The high silver values represent a unique characteristic of the Monday Zone. This is a significant discovery and will be followed up during the 25,000 meter drill program currently underway," stated Michael Ostenson, P.Geo., VP Exploration of Premium Exploration.

PFR2010_22 returned: 2.1 g/t Au over 20.1 meters including 5.5 g/t Au over 6.4 meters,153 g/t Ag over 1.0 meter, 100 g/t Ag over 0.9 meters and 91 g/t Au over 0.9 meters.

It was the second discovery drill-hole to intersect the structure called the "Monday Fault". The drill hole drilled west at a -55 dip, successfully intercepting the new Monday Fault along the same geophysical-structural anomaly as previously released PFR2010-19 which returned 1.4 g/t Au over 38.6 meters. PFR2010_22 was completed at 818.5 meters down-hole depth terminating in anomalous gold mineralization.

PFR2010-22 is located 900 meters south of PFR2010-19, and collectively, the two holes exhibit similar alteration, mineralization, and geochemistry, demonstrating 900 meters of potential continuity along the Monday Fault Zone.

The Monday Zone remains open in all directions and is defined by a 5 km geophysical anomaly. To date, geophysical anomalies drilled by Premium have encountered significant mineralization.

The silver along the Monday Zone is a new discovery at the Idaho Gold Project. Follow up drilling on the Monday Zone is planned in the Phase-Four 2011 drill program.

Cross sections and Block Model can be viewed at www.corebox.com. Please click http://bitly.com/PFR2010_19_22 for the PFR2010_22 cross section and http://bitly.com/MondaySilver for a Plan View Map of the Monday Zone.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company's News Releases of July 9th, 2009 and December 29th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold. ALS Chemex is the check laboratory for the program.