Premium Exploration to resume drilling at Nueva Galicia

2008-04-24 13:25 ET - News Release

Mr. Brett Delaney reports

PREMIUM EXPLORATION ANNOUNCES TWO DRILLS ON ITS NUEVA GALICIA PROPERTY AND APPOINTMENT OF VP, MINING DEVELOPMENT-MEXICO

Premium Exploration Inc. will resume drilling on its Nueva Galicia property in Nayarit, Mexico, and has appointed Barney Green Lee Portillo as vice-president, mining development, Mexico.

Summarized highlights:

• Two drills are on location at the Nueva Galicia property and drilling will commence shortly.
• The company is waiting for assay results from two holes of drilling on the Tajitos workings from the 2007/2008 drill program.
• Geophysics have been completed on Nueva Galicia and they are currently being interpreted. Upon receipt of the report from the geophysicist, the company will issue a news release on the findings.
• Subject to results, it is the company's intention to complete a resource estimate on the property.
• Mr. Portillo, a director with Premium Exploration, has been appointed as vice-president, mining development, Mexico.

Nueva Galicia update

Two drills are now on location at the property and drilling will commence shortly. Premium intends to complete the balance of approximately 1,300 metres (m) of the original 2,000-metre drill program and anticipates drilling another 20 holes to complete this program. The company anticipates completing this drilling before the rainy season begins in late summer.

Premium is waiting for the assay results for drill holes NG-08-014 and NG-07-006X which were targeted to test the historic Tajitos workings at Nueva Galicia. NG-08-014 tested 56 m from NG-07-006X along strike on the Tajitos trend. Drilling intersected hangingwall stringers from 17.65 m to 17.75 m, above massive quartz veining at 19.73 m to 19.81 m and 22.71 m 22.84 m. A wide fault breccia was intersected between 22.8 m to 33 m.

Tajitos is the most extensively mined historical working on the property. Premium is following up on the first and second round of intercepts which included NG07-001 from the Buenos Aires zone with 3.55 m of 7.84 grams per tonne (g/t) gold (Au) and 814 g/t silver (Ag) with an estimated true width of 2.6 m including an interval of 1.0 m of 14.79 g/t Au and 1,280 g/t Ag at 25 m to 26 m depth (see Premium Exploration's news release in Stockwatch dated Sept. 17, 2007) and NG-07-13 from the Cholita zone with 8.79 g/t Au, 1,309.7 g/t Ag over 1.52 m from 18.9 m depth, confirming the high-grade mineralization contained in these structures.

About Mr. Portillo

Mr. Portillo currently serves as a director of Premium Exploration, and has worked in the Mexican mining industry for 25 years as a landman and survey engineer. He has worked with the Mexican federal government (Federal Mining Bureau) and has experience in mining, labour employment and property law with additional expertise in topography and surveying techniques. Mr. Portillo has project management experience and has worked with several major mining companies such as Barrick Gold, Glamis Gold and Kimber Resources.

Premium will substantially increase exploration on the projects in its Mexico portfolio by advancing them simultaneously. Mr. Portillo will oversee the advancement of these projects and will assign a geologist for each project. He will work closely with a head company geologist who will plan the exploration programs and review results. In addition, he will oversee a new division to Premium which will be responsible for the review and evaluation of new projects. The projects will be reviewed in collaboration with geologists who have extensive industry experience and knowledge of epithermal systems.

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