Premium Exploration decreases financing to $2.8-million

2009-10-20 17:42 ET - News Release

Mr. Wilf Struck reports

PREMIUM EXPLORATION AMENDS TERMS OF PRIVATE PLACEMENT

Premium Exploration Inc. has amended the terms of the private placement announced in Stockwatch on Sept. 11, 2009. Under the terms of the amended offering, Premium intends to raise up to $2.8-million through a non-brokered private placement of 14 million units at 20 cents per unit. Each unit will consist of one common share and one non-transferable share purchase warrant. Each share purchase warrant will be exercisable at a price of 30 cents for a period of 18 months from the closing date of the financing. The securities are subject to a four-month hold period.

The warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200 per cent or more from the exercise price for any 15-consecutive-trading-day period subsequent to four months from the closing date. In this event, Premium may accelerate the expiry of the warrants upon providing 60 days of notice to the warrantholders.

The closing of the offering will be completed in two tranches. The funds raised will include finders' fees of up to 7 per cent in cash or shares. The amendment of the private placement is subject to approval from the TSX Venture Exchange.

We seek Safe Harbor.