The year is flying by and we've all had our patience tested with the volatility in the market. Fortunately, it has created some great opportunities as there is a select group of fundamentally sound companies trading at or near their 52 week low - this is when we look for entry points. Like we always say, timing is everything. Bear markets provide the best bargains and we can all appreciate a great sale on that product we have been looking to purchase, but never wanted to pay full price for. Those deals are out there in the markets right now, unfortunately they don't have a sign above them that reads 50% off, you have to look carefully.

As promised, this report will introduce you to our new Featured Company, Premium Exploration Inc. (PEM : TSXV) currently trading at $0.30. Since we set out to find our new Featured Company much has changed in the financial markets, helping us greatly in the choice we have made. Our team wanted to find a resource play for our members, but not just a one or two dimensioned company with a small target. We had to hedge our bets by finding a company that was going after 4 or 5 targets with several mineralization zones on separate properties. Also, we got greedy on this one, we wanted a tight capital structure and a small market cap. Was it hard to find? Absolutely, and that is why our team is proud to put our name behind this company.

When it comes to explaining Premium Exploration there is a lot of information to address. In this report we will break down why we chose them and highlight their most influential properties, as well as what to expect over the coming months. Let's get started.

Management

If the CEO of a company has developed a solid reputation and delivered on their promises, chances are they will be more likely to develop their properties, raise adequate capital, hire integral employees and increase shareholder value.

The moment we met Premium Exploration's CEO Del Steiner we were impressed. He is a very professional and charismatic individual with an admirable work ethic and a desire to continually increase shareholder value. When we first met with Del, he'd just arrived from Premium's Nueva Galicia property in Mexico to meet us for the day. An hour after the meeting had concluded he was on his way to Idaho to visit the Friday Petsite property. The next time we spoke with Del only a few days later, he was at an invite only investment show comprised of a select group of 25 companies at the Chicago Resource Expo. Del Steiner's drive to succeed is intense and his passion is obvious when he speaks of Premium's future. On top of that, his track record alone was enough to guide our decision. Mr. Steiner has a proven history in the region where Premium's North American properties are located. The two states (not including their 5 Mexican properties) are Idaho and Montana. He took Idaho Consolidated Metals Corp. public and was President and CEO between 1990 and 2001.

Mr. Steiner began his career practicing environmental law focused on the advancement of mining in the exact state two of his main properties are located - Idaho. From the moment our team met him we were asking ourselves if he had what it took to accomplish some of Premium Exploration's major goals.

1. Permitting a gold mine for 2009
2. Upgrading a 531,890 oz gold deposit
3. Advancing a behemoth of a property which touches the worlds highest grade producer of PGM's

And then there are the five solely owned Mexican properties, one of which is believed by the company to have approximately ten potentially high-grade silver-gold shoots, which they believe may have the potential of containing 150,000 gold equivalent ounces each.

Del Steiner's Proven Success

Idaho Consolidated Metals was taken public by Mr. Steiner at a price of $0.75 per share with a market cap of $3,750,000. At its peak, the company traded at $4.60 per share and had an $80,000,000 market cap(an increase of 600% on the share price and an increase of over 2000% on the market capitalization). The company was advanced through acquisitions and drilling and was always solvent, an impressive and rare accomplishment.

Now Mr. Steiner is leading Premium Exploration and this time he has more experience, knowledge and the exact parcels of land he wanted from the beginning.

The Chrome Mountain Project

The Chrome Mountain Project is arguably Premium Exploration's most attractive property. It is located in Montana and is a platinum, palladium, rhodium and gold target.

Last week we discussed the Stillwater Complex in Montana which is home to the world renowned JM reef. This region is the only pure producer of palladium and platinum in the United States. Premium Exploration's Chrome Mountain Project is 1 mile and 4 miles from the only two producing PGM mines in the United States, the East Boulder Mine and the Stillwater Mine (which has been producing over 400,000 ounces of platinum and palladium per year since 1998). The Stillwater Complex is 26 miles long and the Chrome Mountain project lies within the complex (Premium's property is 14km long). The East Boulder Mine is on the north side of the Chrome Mountain Property and the JM reef crosses through the north shoulder of it. In respect to this type of trend and deposit, the proximity is extremely close and very telling of its potential. We wouldn't be explaining this if the results to date hadn't received admiration from many industry professionals.

Remember the Bushveld Complex in South Africa is the largest deposit of platinum and palladium in the world, containing more than 75% of the world's resource of these metals. There is a major push domestically to mine for these metals as many believe platinum may be on its way to becoming a strategic metal. The Stillwater Complex in Montana is the only place in the United States that has a proven mineable deposit of PGM's (Premium's Chrome Mountain project is located in the complex). Let's compare the Stillwater Complex and JM Reef of Montana to the Bushveld Complex and the Merenksy Reef of South Africa. These facts will amaze you.

The Bushveld Complex ranges from 4 g/t to 6 g/t, whereas mining grades from the JM Reef in the Stillwater Complex range from 15 g/t to 21 g/t with credits for copper and nickel. The Stillwater Complex hosts one of the richest known palladium and platinum deposits in the world. The JM Reef is thought to model the Merenksy Reef of the Bushveld Complex in South Africa.

Premium Exploration's Chrome Mountain property is located only 1 mile from the East Boulder mine and about 4.5 miles from the Stillwater Mine. Both mines are owned by the only United States producer of palladium and platinum. As stated above, since 1998 the Stillwater Mine has been producing over 400,000 ounces of platinum and palladium per year. The area is well known for PGM mineralization and Premium Exploration has made an extensive commitment to this property. Exceptional results from Premium's project have been received and they are looking to advance the project this summer. The Stillwater mine is currently the world's highest-grade and third largest PGE producing operation. A junior exploration company having a property so close to the only domestic producer of palladium and platinum is raising some eyebrows in the mining industry.

Premium Exploration has brought in a joint venture partner on the property: Beartooth Platinum Corp. which recently received encouraging drill results from the Stillwater Project in south-central Montana. As stated above, Del Steiner took Idaho Consolidated Metals public, which was eventually sold. After Mr. Steiner resigned in 2001, he stayed on as a consultant to the Company, which later changed management and now operates under Beartooth Platinum Corporation. Del Steiner was the man who staked the original property (Chrome Mountain) and all of its parameters back in the late 1990s. His development decisions have been driven by results.

As Premium moves forward they will be in a controlling position which is desired by many juniors and hard to come by. For instance, Premium has the rights to all of the gold discovered at the Chrome Mountain property. We must stress that every ounce of gold discovered on the Chrome Mountain Property is 100% the possession of Premium Exploration (be sure to view some of the gold samples taken from the property). Beartooth is currently earning a 50% interest in the property by spending US $3 million over three years. The JV was signed on May 11, 2007; Premium and Beartooth are completing their first year of the JV agreement.

Drilling at the Chrome Mountain target returned average intercepts of 118 metres grading 0.66 grams platinum + palladium + rhodium/tonne. What is most important is this drilling confirmed the presence of reef-style PGM mineralization.

Parallel to the JM Reef lies the "A" and "B" Chromitite horizon, Premium's main target on the property, and thought to model the UG2 Reef of South Africa. Highlights from recent drilling include:

* Geochemical anomaly 2,500 m x 1,000 m wide, with grades of 1.0 g/t PGM
* Surface samples in excess of 4 g/t to a high of 46 g/t PGM and 1.2 g/t rhodium

Drilling intercepted:

• PC-2 - 26 ft containing 16.9 g/t gold
• PC-5 - 8.6 ft of 29.7 g/t gold
• PC-7 - 2 ft of 1.1 g/t platinum; 5.1 g/t palladium; and 0.172 g/t gold
• PC-7 - 2 ft of 1.1 g/t platinum; 2.7 g/t palladium and 0.082 g/t gold

Below are the most recent drill results from the Chrome Mountain Property.

• Hole CM2007-04 returned 1.0 g/t combined Au+Pt+Pd over 116.7 meters with five high-grade intercepts up 11.9 g/t PGM + Au and with widths up to 1.2 meters.
• Hole CM2007-02 returned 1.5 g/t PGM+AU over 50 meters with high-grade intervals up to 7.9 g/t.

To understand the potential of this property and to explain it in simpler terms we have included a quote from Dr. Reid Keays, PhD., of Monash University, a globally recognized researcher of PGE and nickel deposits and a technical advisor to Beartooth. He stated that, "The mineralization identified at Chrome Mountain appears to have characteristics similar to Platreef and UG2 styles of mineralization in South Africa. It appears that the processes by which these important world class deposits formed in the Bushveld Complex were also operating in the Stillwater Complex, and indeed may have overlapped to form a combined style of mineralization at Chrome Mountain."

The positive sentiment and successful drill results has led to the decision that a 10,000 ft drill program is to be conducted by Beartooth. The program has been scheduled for the summer of 2008; another reason why we are telling you about Premium Exploration's story now. We want you to learn about this company before their development occurs. The drill hole depth concentration will be between 300 and 700 ft. Ten to fifteen holes are anticipated and the balance of their drilling will be focused on the higher grade soil geochemical anomalies.

Friday/Petsite Project

On January 29th 2008, Premium filed a NI 43-101 compliant resource calculation of 531,890 ounces of gold on the property. There has been extensive historical work done on this property as both Bema Gold and Kinross Gold have spent over $3.25 million in the past 20 years. This is a situation of timing where a potentially economical property was stepped over during depressed gold markets. Wilf Struck, P.Eng. of CV Enterprises is Premium's lead geologist on the projects in the United States and is based out of Redlodge, Montana. Wilf Struck has worked on these properties since 1985 and was the indispensible consultant responsible for staking the property. He was also instrumental in the discovery during the ICMC (Idaho Consolidated Metals) days.

Wilf Struck describes the Friday / Petsite property as an Advanced Exploration Property and further concluded that the past exploration has defined a medium-sized disseminated gold deposit. It is open along strike and at depth and potentially expandable through additional exploration. The NI 43-101 report recommends a staged exploration plan to move the inferred resource up to a mineral reserve. Premium has reported that 4,000 meters of core drilling and a budget of $1.4 million have been recommended for the first phase of drilling. And pending on results from the first phase, a second phase of 8,000 meters of drilling and metallurgical testing would be conducted with a budget of $2.7 million.

The 40km long shear zone which Friday/Petsite is situated on has historically produced over 4,000,000 ounces of gold. As stated above, Premium plans to expand on their 531,890 ounce resource calculation as it is open along strike and at depth. Initial historic high grade target testing returned 21.3 meters averaging 9.9 g/t gold including 1.5 meters of 74.85 g/t gold. These grades are hard to come by and caught our attention right away.

Buffalo Gulch Project

Their second property in Idaho is perhaps the most impressive. It is the Buffalo Gulch Gold Project which is in the process of being permitted for production in 2009. That's right, production, a step very few juniors ever make. It has a historical resource of just over 100,000 ounces of gold. In this case it isn't about how much gold is in the ground but how feasible the property is. We will be releasing a report in the coming weeks on the logistics and potential of this property.

Nueva Galicia Project

Nueva Galicia is one of five projects Premium Exploration solely owns in Mexico; another strategy in their hedge against any future roadblocks. We have chosen to focus on Premium's Nueva Galicia project for five reasons:

1. The high grade samples that have already been proven by Premium on the property
2. Two drills are set to commence drilling on the property immediately
3. The potential growth and expansion on the property
4. The pending assay results expected over the coming weeks - another reason why we are telling you about their story now
5. Nueva Galicia is Premium Exploration's flagship property.

Since Pinnacle Digest's inception we have never dealt with a company so diversified with such depth in their properties. The grades and mineralization achieved to date speak for themselves. Premium's Nueva Galicia property backs up our beliefs with facts.

Assay results have now been received from drilling completed at Nueva Galicia in October - December 2007. Results include high grade gold and silver intercepts.

A few highlights include:

• 2.8m @ 10.2 g/t Au, 309.8 g/t Ag from 12.6m depth (NG-07-012)
• 1.52m @ 8.79 g/t Au, 1309.7 g/t Ag from 18.9m (NG-07-013)

These results have led Premium to allocate a 2 drill program set to commence on the property immediately. Premium solely owns one drill which they can allocate to any of their Mexican properties. Our team at Pinnacle is expecting assay results from the property over the coming weeks.

On April 7th it was announced that Mr. Salvador Huerta has been appointed to the Board of Directors. Mr. Huerta has been the Controller for Mexican Operations with Aurcana Corporation and was the Deputy President and CFO of companies in Mexico such as Timex, HJ Heinz, ALFA Group and Sanluis Rassini. On April 24th Mr. Barney Portillo was appointed as the VP-Mining Development Mexico. 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 has focused on Nueva Galicia because of the high gold and silver grades achieved - making their efforts multi-pronged, which could increase their chances of defining and advancing a profoundly economical deposit.

In a report dated April 23rd 2008, Analyst, Mike Niehuser from Beacon Rock Research stated that "The Company has identified approximately ten potentially high-grade silver-gold shoots, which they believe may have the potential of containing 150,000 gold equivalent ounces each."

Key Fact:

Premium completed their most recent financing on August 23, 2007 at a price of $0.40 per share, a 33% premium to their current share price.

Share Structure

• Free Trading Shares: 33,608,053
• Escrowed Shares: 2,184,000
• Total Shares Issued: 35,792,053
• Options Granted: 5,292,500
• Warrants Issued: 2,389,499
• Total Fully Diluted: 43,474,052
• 52 Week High: $0.75
• 52 Week Low: $0.24

Combine all the information we have just reviewed on Premium Exploration's Chrome Mountain Project, Friday/Petsite Project, Buffalo Gulch Project and Nueva Galicia Project and determine where you would value their share price. Keep in mind we haven't even touched on their four other Mexican gold and silver projects (we will review in a later report). Our team hopes you can see why we haven chosen Premium Exploration (PEM : TSXV) as our new Featured Company and why we consider them to be the most diverse and hedged company we have ever featured. If you have any questions regarding the company please feel free to contact us via email at support@pinnacledigest.com. You can expect follow up reports on Premium over the coming months as they are now a part of the Pinnacle Digest portfolio.

All the best with your investments,

PinnacleDigest.com