Premium Exploration Extends Friday-Petsite Main Zone 100 MetersNorth With 200 Meters of Gold Mineralization; Deposit Remains Open AlongStrike and Depth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2010) - PremiumExploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company")announces that drilling has extended the north-south trend of theFriday-Petsite Main Zone approximately 100 metres north reducing the gapbetween the North and Main Zones at the Friday-Petsite Gold Project inCentral Idaho, USA. PFR2010_16 encountered 1.0 g/t gold over 75 metreswithin a broader interval of 0.8 g/t gold over 155.8 metres whilePFR2010_17 encountered 1.0 g/t gold over 126.2 metres within a broaderinterval of 0.8 g/t gold over 206.7 metres. With the addition of theseholes mineralization is interpreted as being contiguous along strike tothe North Zone containing historic gold-rich holes PC20 and PC21, whichreturned 1.6 g/t Au over 108.5 meters and 1.0 g/t Au over 79.6 meters,respectively.

Please click http://bit.ly/PEMLongSec1025 for the updated Long Section and http://bit.ly/PEMCrossSection1617 for Cross Section PFR2010_16 & 17.

PFR2010_16 & 17 were drilled from thesame collar and oriented to the northwest with -60 and -50 degree dipsto test the extension of alteration and mineralization along the FridayFault to the north, between the Main and North Zones, In addition; aninterpreted "dilatant" structure was tested; a high grade featurecommonly associated with Shear Zones.

Both holes terminate 100 meters north PFR2010_10 & 13(previously the northern most drill holes in the Main Zone releasedSeptember 20th, 2010, http://bit.ly/PEMsept20)and 200 meters south of historic PC20 & PC21 within the North Zone.Total project drilled strike length is now 1,000 meters.

Drill Sections and a 3D model can be viewed at www.Corebox.net or by following a link on the Company's website at www.premiumexploration.com.

Premium's intent is to extend the 1,000 meter strike lengthof the Friday-Petsite project by developing the Main Zone an additional200 meters to the north, connecting the Main and North Zones for a totalproject strike length of 1,500 meters.

Planned drill holes PFR2010_23 and PFR2010_24 are designed todelineate the remaining 200 meters between the Main and North Zones andconfirm continuity of mineralization.

PFR2010_23 will be a 200 meter step-outnorth from Premium's current mineralized 1,000 meter strike length and50 meters north of the historic Kinross core holes PC-20 and PC-21. Thishole will be drilled west to test for down-dip mineralization in theLower Block. It is the furthest drill hole permitted to the north atthis time.

PFR2010_24 will be located at the samecollar as PFR2010_23 and drilled east, designed to locate the FridayFault along the eastern boundary of the OSZ.

Please click http://bit.ly/PEMPhase3Plan1025 for an updated Phase-Three Plan View Map with Results.

Drill Holes Pending Assays:

• PFR2010_14 & 15 are designed to intercept the hanging wall mineralization and location of the Friday-Fault. Both were drilled from the same collar and located at the southern end of the Main Zone. These drill holes have visually intercepted characteristic sulphide mineralization and alteration in the interpreted Lower Block.

• PFR2010_18 is an infill definition hole drilled steeply to the west providing structural and mineralization information.

• PFR2010_19 was drilled to the west and is Premium's first pure exploration hole in 2010; designed to intercept the inferred west-bounding fault of the OSZ known as the Monday Fault. It has visually encountered sulphide mineralization and alteration characteristic of the OSZ.

• PFR2010-20 is the southernmost drill hole, located 150 meters south of PFR2009_8 & 9 which returned 0.6 g/t Au over 124.1 m and 1.0 g/t Au over 11.6 m respectively. This drill hole has intercepted sulphide mineralization and alteration characteristic of the OSZ.

To Date:

• Drilling has increased the Mineralized Strike Length to 1,000 meters (PFR2010_17 on the north and PFR2010_20 to the south), reached depths up to 300 meters, and mineralization is minimum 100 meters wide and remains open along strike and at depth.

• Lower Block development has reached 500 meters of strike length between PFR2010_17 and previously released drill hole PFR2010_12.

• All released drill holes (Phase-1, 2, & 3 = 27 holes) have encountered mineralization and are yet to be added to a resource estimate.

• 20 of ~25 planned drill holes are completed in 8,704 meters with assays pending for 6 of the completed holes.

District Development Overview:

Development is ongoing at the bulk-tonnage Friday-PetsiteProject, the most advanced of several known mineralized zones located atthe southern end of the 30 km of the OSZ and represents 4% of the OSZunder Premium's control.

The Friday-Petsite Zone is located along the east-boundingfault of the OSZ. Drilling at the Friday-Petsite is co-incident with a 3.0 km long by 800 meter wide gold-in-soil anomaly and a correlating ground magnetic geophysical survey outlining 3 km's of immediate local structure.

Premium has had 100% drill target intercept success inconjunction with ground-magnetic geophysics and soil sampling at theFriday-Petsite Project. Intercepts have ranged from lows of 0.5 g/t Auto highs of 2.6 g/t Au, in some cases over +100 meter intervals, as withPFR2009_10: 2.6 g/t Au over 198 meters including 3.8 g/t Au over 121 meters and 5 g/t over 75 meters.

Premium intends to utilize the same methodology to refinetargets for a much larger Phase-Four exploration program along theOrogrande Shear Zone in Q1-2011.

Qualified Person

The 2010 Phase-Three exploration program is being directed byMichael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc.Mr. Ostenson is a Qualified Person as defined by NI 43-101. Mr. Ostensonprepared, and approves of the content in this release.

About Premium Exploration Inc.

Premium is focused on the exploration and development of itsdistrict-sized Orogrande Shear Zone "OSZ" to fulfill its vision ofdeveloping a new mining district in North America. The OSZ is a 30km-plus regionally-significant trending structure that correlates withmultiple known zones of gold mineralization and has structural controlto its gold mineralization, characteristics similar to many large goldbelts, such as the Carlin Trend of Nevada. Development is ongoing at thebulk-tonnage Friday-Petsite Project, the most advanced of several knownmineralized zones located along the OSZ and represents 4% of the OSZunder Premium's control. For additional information, please visit us at www.premiumexploration.com.

This press release contains certain "Forward-LookingStatements" within the meaning of Section 21E of the United StatesSecurity Exchange Act of 1934, and involves a number of risks anduncertainties. Important factors that could cause actual results todiffer materially from the Company's expectations are disclosed in theCompany's documents filed from time to time with the TSX VentureExchange and the British Columbia Securities Commission. All statements,other than of historical fact, included herein are forward-lookingstatements that involve various risks and uncertainties. There can be noassurance that such statements will prove to be accurate, and actualresults and future events could differ materially from those anticipatedin such statements.