Premium Exploration: 30-km Airborne Survey Results in Expanded Phase-Three Exploration Program; Phase-Four Preparation Underway

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2010) - Premium Exploration Inc. (TSX VENTURE:PEM) is focused on systematically exploring and developing targets identified along strike of the Orogrande Sheer Zone for potential district development, in central Idaho, USA. To follow up on the strong regional zone of conductivity potentially representing the Orogrande Shear Zone, the Company has initiated additional exploration to obtain data that will help refine the best targets to make new discoveries in the Phase-Four program of 2011.

To date the Company has:

• Completed a 1.5-km Ground Magnetic Geophysical Survey over the Buffalo Gulch Project – interpretation is anticipated shortly

• Completed two 1.5 km IP Dipole-Dipole Surveys over priority targets in the Deadwood and Buffalo Gulch Projects – interpretations anticipated early Q1-2011

• Initiated a 7,500 Soil Sampling Campaign with the intent of taking 5,000 samples before the snow flies at priority targets in the Deadwood and Aurum Projects with 1,500 samples (30%) completed to date – results anticipated early Q1-2011

• Initiated the complete interpretation of the Magnetic and all three EM frequencies of the Airborne Geophysical Survey - results anticipated Q1-2011

• Initiated Drill-Site Permitting for up to 75 drill sites along the entire length of Premium controlled OSZ

• Secured commitment of four drills for the Phase-Four program, anticipated to begin by the end of Q1-2011 (the Company is well funded to get Phase-Four underway)

The Company is systematically applying its methodology along the OSZ in preparation for its Phase-Four program. Premium will employ the methodology which has drill-validated 1-km of the mineralized target, the east bounding fault of the OSZ known as the Friday Fault, along the balance of the 30-km's of the OSZ under Premium's control.

Premium's exploration methodology has resulted in 100% drill-target intercept success in the Phase-One, Two, and Three drill programs at the Friday-Petsite. Upon the release of the airborne geophysical image, geologists observed that the airborne geophysical anomaly correlates with the 3.0-km gold-in-soil anomaly, 3.0-km ground magnetic geophysical anomaly, and the 1.0-km of drilling along the Friday Fault at the Friday-Petsite project, and may well outline 30 km's of structure along the Orogrande Shear Zone for immediate exploration and Phase-Four drilling.

Click http://bit.ly/FridayFault for the Friday Fault Correlating Geochem, Ground Mag & Airborne Map.

Important to note is the existing historic soil geochemical and geophysical work already completed along the Orogrande Shear Zone between the Buffalo Gulch and Friday-Petsite projects. The historic data correlates with the recently released Airborne Geophysical Image, which Premium will utilize when refining drill targets early in Q1-2010. The details of the Phase-Four program will be announced upon obtaining results of Premium's current expanded exploration program.

Buffalo Gulch (Northern-Most Project):

• Defined by a 4 km north-south trending gold in historic soil geochemical anomaly with only a small portion of the geochemical anomaly being drill tested by previous operators

• 1.5 km's and 1.5 km's of IP and Ground Magnetic Geophysics reveal a potential structure interpreted to be the OSZ

• The existing oxide deposit, as delineated by previous operators, is open along strike and at depth into sulphide mineralization

• To date, no drilling at depth beyond 150 meters has been conducted to test high-grade sulphide potential

• Both the soil geochemical and geophysical anomalies correlate with the recently released airborne geophysical image

Deadwood Project:

• Defined by a 5,000 meter geochemical soil anomaly along strike

• Premium has recently acquired a historic geophysical IP survey that is currently undergoing interpretation

• Limited historic shallow RC drilling (down to 30 meters) encountered oxide mineralization, however, just as at the Buffalo Gulch and Friday-Petsite project, previous drill programs were not designed to target high-grade sufide potential at depth

• Both the soil geochemical and geophysical anomalies correlate with the recently released airborne geophysical image

Aurum Project:

• Is a grassroots project along the OSZ. Although no modern exploration has been conducted over Aurum, 3.5-km of the Crooked River aligns with the entire Aurum project from north to south and was extensively placer mined in the early 1900's utilizing a Bucket-Line Dredge. Dredging concluded at the northern end of the Friday-Petsite project, a few meters from where Premium is drilling today. Dredging was a major operation for that period of time.

Click http://bit.ly/OSZMap for the Correlating Geochem, Placer, Geophysics & Airborne OSZ Map.

Friday-Petsite Phase-Three Drill Program Update:

Drilling is designed to develop the Lower Block mineralization directly beneath the initial modeled deposit at the Friday-Petsite while stepping out and developing both the initial modeled deposit (North and Main Zones) and Lower Block, along strike.

PFR2010_22: Is the first step-out outside the initial deposit model and could extend the 1.0-km drill-validated strike length by 200 meters south. It is located 200 meters south of the South Zone and PFR2010_20. It is being drilled west at a -55 degree to test for down-dip mineralization of the Lower Block and is the most southern drill-hole in Phase-Three to date.

PFR2010_24: Is being drilled west at a -80 dip to test mineralization interpreted to be contiguous to mineralization encountered by PFR2010_11 & PFR2010_12 and beneath the initial deposit model by locating the Friday Fault at depth, further developing the Lower Block in the southern-end of the Main Zone. It is located 50 meters south of previously released drill-holes PFR2010_11 & 12 and could increase the strike length of the Lower Block by 50 meters to 550 meters.

Drill Holes Pending Assays:

• PFR2010_15 is an infill drillhole that was drilled from the same collar of recently released PFR2010_14 in the southern end of the Main Zone. It was drilled east at a -65 dip to test for mineralization beneath and contiguous to mineralization encountered by PFR2009_11 & 12 by locating the Friday Fault at depth. The total down-hole depth was 378.9 metres and visually encountered favourable alteration/sulphide mineralization.

• PFR2010_18 is an infill hole drilled steeply to the west at a -75 dip to provide structural information and to test mineralization located directly beneath the initial deposit model. The total down-hole depth is 545 meters and encountered sulphide mineralization/alteration characteristic of the OSZ.

• PFR2010_19 was drilled to the west and is Premium's first pure exploration hole in 2010. It is a 649 meter drill-hole designed to intercept the inferred west-bounding fault of the OSZ known as the Monday Fault. Encountering gold mineralization in PFR2010_19 would make it a discovery hole, expanding the potential east-west width of the Main Zone by 200 meters and opening up the western side of the OSZ for additional exploration. PFR2010_19 visually encountered sulphide mineralization/ alteration characteristic of the OSZ.

• PFR2010_20 is a step-out south, located 150 meters south of PFR2009_8 & 9 in the South Zone, 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 is designed to test for interpreted contiguous mineralization encountered by PFR2009_8 & 9, at depth. The total down-hole depth is 698 meters and intercepted sulphide mineralization/alteration characteristic of the OSZ.

• PFR2010_21 is a infill hole drilled east at a -80 dip designed to test for mineralization interpreted to be contiguous to PFR2010_4 and PFR2009_3 at depth, developing the Lower Block in the northern-end of the Main Zone. It is located 25 meters north of PFR2010_4 and 25 meters south of PFR2009_3. The total down-hole depth is 425 metres and visually encountered favourable alteration/sulphide mineralization.

• PFR2010_23 is an infill hole drilled west at a -70 dip to test for mineralization interpreted to be contiguous to PFR2009_12 and PFR2009_10, developing the Lower Block in the southern-end of the Main Zone. It is located 25 meters north of PFR2009_12 and 40 meters south of PFR2009-10. The drill-hole was completed at 359 meters down-hole depth and visually encountered characteristic mineralization/sulphide alteration.

Planned Drilling for Phase-Three:

PFR2010_25 to PFR2010_28 are designed to delineate the remaining 200 meters between the Main and North Zones while developing the Upper and Lower Blocks and confirming continuity of mineralization.

• PFR2010_25 will be a step-out north and could extend Premium's current mineralized 1.0-km meter strike length an additional 200 meters. It is 50 meters north of historic Kinross core holes PC-20 and PC-21. This hole will be drilled west to test for down-dip mineralization in the Lower Block. It is the furthest drill hole permitted to the north at this time.

• PFR2010_26 will be located and drilled directly beneath historic Kinross core holes PC-20/PC-21 and drilled to the west to test the down-dip mineralization potential.

• PFR2010-27 will be located 50 meters south of historic Kinross core holes PC-20/PC-21 to tie the mineralization of the North and Main Zones together.

• PFR2010-28 will be located 100 meters south of historic Kinross core holes PC-20/PC-21 and will also be targeted to tie the mineralization of the North and Main Zones together.

Click http://bit.ly/Phase3DrillPlan to view an updated Drill Plan Map.

District Development

The 30-km Airborne Geophysical Image reveals the strong regional extent of the zone of conductivity interpreted to represent the Orogrande Shear Zone, linking all five contiguous projects and the two known gold deposits located at either end, which resulted in Premium increasing its land position by 200%.

Since the exploration and development began along the OSZ on June 14th 2009, Premium focused on the Friday-Petsite, the largest and most advanced asset along the OSZ, the company has;

Completed an 850-meter Phase-One Drill Program (June-09 to July-09);

• Confirmed the new geological model: mineralization is associated with the Friday Fault of the OSZ and dips east

• Phase-One drill highlight: 5. g/t Au over 17.92 meters with mineralization starting at surface

Completed an 1830 meter Phase-Two Drill Program (Oct-09 to Dec-09);

• Discovered high-grade mineralization double the down dip extent (Lower Block) directly beneath existing modeled deposit (Upper Block)

• Increased the strike length of the existing modeled deposit (Upper Block) by 120% to 775 meters

Initiated the 10,000 meter Phase-Three Drill Program (April 2010 – Present) to potentially double the existing deposit model by connecting the Main and North Zones, initiated metallurgical test work and successfully identified new target zones for exploration & development along the Orogrande Shear Zone:

• All released drill holes (Phase-1, 2, & 3 = 27 holes) have encountered gold mineralization to date

• Drilling has increased the Mineralized Strike Length of the Friday-Petsite to 1,000 meters (PFR2010_17 on the north and PFR2010_20 to the south), has reached depths up to 300 meters, reached a minimum mineralization width of a 100 meters, 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, potentially doubling the down dip extend of the initial modeled deposit

• 22 of ~28 planned drill holes are completed in 9,167 meters with assays pending for 6 of the completed holes

• Initiated metallurgical test work – results are pending and anticipated by early December-2010