VANCOUVER, BRITISH COLUMBIA (May 6th, 2010) - Premium Exploration Inc. (TSX-V:PEM) (“Premium”) is pleased to provide an update on the Phase-Three drill program on the Friday-Petsite gold project in central Idaho. The Company has now completed the first two holes of Phase-Three and both drill holes have successfully intersected the same mineralized zone as encountered in hole PFR2009-10 of the Phase-Two program, which returned 2.66 g/t gold over 198.4 meters (650.9 ft) including 9.16 g/t gold over 25.3 meters (83.0 ft).

“It is very exciting to have the first two holes of our first major exploration program intercept the same geology which returned the best grades encountered at the project to date. Encountering the target zones corroborates Premium’s geological model, confirms additional sulphide mineralization at depth and continues to demonstrate the Friday-Petsite’s robust mineralization potential. With 9,449 meters (31,000 ft) to go, this is an excellent start to an exciting and well designed exploration program,” stated Premium’s Chairman and CEO, Wilf Struck, P.Eng.

Premium has drilled 568.3 meters (1,864.5 ft) in two holes and is currently drilling PFR2010-3.


Please click the map to enlarge the image.

PFR2010-1 was a 219 meters (718.5 ft) vertical hole located 100 meters (328.1 ft) west and 15 meters (49.2 ft) north from PFR2009-10.PFR2010-1 encountered identical sulphides and geology as encountered in PFR2009-10; altered quartz monzonite and muscovite schist with moderate to intense sericite alteration and bottomed in 16.1 meters (53 ft) of Trachyte, a post-mineral dike.

PFR2010-2 was a 349.3 meter (1,146 ft) vertical hole located 129 meters (423.2 ft) west and 20 meters (65.6 ft) north of PFR2009-10. PFR2010-2 has also encountered identical sulphides and geology as encountered in PFR2009-10.

PFR2010-3 is being drilled on the same azimuth and dip as PFR2009-10 (270° azimuth and -65 dip) but is located 5 meters (16.4 ft) west and 25 meters (82.0 ft) north of PFR2009-10. PFR2010-3 has reached a depth of 213.2 meters (700 ft) and is designed to continue until it exits the target zone or reaches target depth.

The Phase-Three drill program will consist of approximately 33 holes ranging in depth from 150 meters (500 ft) to 610 meters (2000 ft) for a total of 10,000 meters (33,000 ft) of drilling. The program is designed to delineate the target mineralization adjacent to the existing 549,000 oz inferred gold resource (15 million tonnes at an average grade of 1.13 g/t gold at a cutoff grade of 0.50 g/t gold) with the intent of increasing the size of the resource and upgrading some of the resource categories.



The target tonnage and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. If the drilling intercepts the target mineralization, and sufficient information is acquired to support a resource estimate, these ounces would be an addition to the existing resource.

About Premium Exploration, Inc.

Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of North American gold, silver, platinum and palladium. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company’s portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico.For additional information, please visit us at www.premiumexploration.com.

For more information, please contact:

Mr. Wilf Struck, P.Eng.
Chief Executive Officer
Premium Exploration Inc.
(604) 682-0243
(604) 682-2499
e: wstruck@premiumexploration.com
w: www.premiumexploration.com

Ms. Christine Kopr
Corporate Communications
Opes Capital Inc.
(604) 992-1831
e: ckopr@opescapitalinc.com
www.opescapitalinc.com

Tracy Weslosky & Fred Cowans
Managing Partners
Pro-edge Consultants Inc.
Toll-Free: (866) 544-9622
F: (416) 581-0177
Email: info@pro-edge.com
www.pro-edge.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 involves 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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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