VANCOUVER, BRITISH COLUMBIA (July 6, 2010) – Premium Exploration Inc. (TSX-V:PEM) (“Premium” or the “Company”) is pleased to announce that it has closed the final tranche of its Brokered Private Placement (the “Private Placement”) through an issuance of an additional 8,000,000 Units for gross proceeds of $2,000,000.

Each Unit consists of one common share and one-half of a common share purchase warrant, each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing. The placement was led by Industrial Alliance Securities Inc., in a syndicate which included Dundee Securities Corporation and Byron Securities Limited. The placement was previously announced on April 19, 2010 and amended June 9, 2010.

On July 2, 2010, Premium fulfilled its escrow closing conditions for the completion of its $10 million “Private Placement” and on July 5th, 2010 the Company closed the first tranche of its Private Placement for gross total proceeds of $8,000,000 through the issuance of 32,000,000 at a price of $0.25 per Unit. Upon completion of this final tranche, Premium will issue an aggregate of 40,000,000 Units for aggregate gross proceeds in the amount of $10,000,000.

The funds raised include a 7% cash commission payable upon closing and 7% broker’s warrants (issuable upon closing). Each broker’s warrant allows the holder thereof to purchase a Unit at an exercise price of $0.25 per Unit, exercisable for a period of 18 months after the closing date. Each such Unit has the same terms and conditions as those offered under the private placement and is also each comprised of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share at a price of $0.35 per share for an eighteen month period following closing. The securities issued are subject to a four-month hold period from the date of issuance and to final acceptance from the TSX Venture Exchange (the “Exchange”). The Exchange has confirmed its final acceptance in respect of the Private Placement in its bulletin dated July 2, 2010.

Proceeds from the private placement will be used for ongoing exploration and development of the Company’s projects, including the on-going Phase-Three drill program on the Friday/Petsite project, and for general working capital.

Premium Exploration Inc. (TSX-V:PEM) explores and develops North American gold, silver, Platinum and Palladium. 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 which includes an NI 43-101 gold resource, as well as a PGM exploration project in Montana. For additional information, please visit us at www.premiumexploration.com.

For more information, please contact:

Mr. Del Steiner, JD.
President
Premium Exploration Inc.
(604) 682-0243
(604) 682-2499
e: dsteiner@premiumexploration.com
w: www.premiumexploration.com

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