Premium Exploration and Velocity Minerals Clarify Claim Staking in Idaho, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) -Premium Exploration Inc. (TSX VENTURE:PEM) and Velocity Minerals Ltd.are pleased to jointly issue this release regarding the current state ofmineral claims staked by the Companies in the Orogrande mining districtin central Idaho USA.

Both Companies are engaged in the exploration of what isbelieved to be a very large gold trend known to be the Orogrande ShearZone "OSZ". Premium is focused on systematically exploring anddeveloping targets identified along its district-sized land packagecovering 30-Km of strike length along the interpreted OSZ. The landpackage extends from Project "X" at the southern end of the OSZ toBuffalo Gulch on the north, while Velocity Minerals is focused on thepotential southern extension or splay of the OSZ.

Premium began announcing the increases to its original district-sized land package of 394 claims (32 sq-km), September 8thof 2010. The Company increased its land position to 582 claims (43sq-km) by adding 134 claims (11 sq-km) due to the identification ofmultiple high-priority targets with geophysical signatures similar tothat of the Friday-Petsite Project in the Deadwood and Aurum ProjectAreas.

On Oct 12th 2010, Premium announced a total 200%increase to its land package with the addition of 774 new claims,totalling 1,168 claims (95 sq km) over the OSZ upon the release of theAirborne Geophysics. The additional claims expanded the main projectareas of Buffalo Gulch, Deadwood, Aurum, Friday-Petsite, and addedProject X to the south.

The order of claim staking is attributed to the way thegeophysical survey was conducted from north to south. As raw data wasreceived, high priority targets were first interpreted and staked in theDeadwood and Aurum Project Areas. Further on, claims were staked southof the original Friday-Petsite claim boundary, culminating in thestaking of the Project X anomaly.

On September 27th, Velocity announced the staking of 60claims south of Premium's original Friday-Petsite Project, thesouthern-most boundary prior to Premium's second announcement of itsfinal land position increase. Since then, Velocity has staked anadditional 96 claims on the potential extension of the OSZ, south ofPremium's Project X.

In order to expedite the overall development of the goldtrend and to gain a better understanding of its district potential, thetwo Companies have engaged in dialogue on how to most efficientlyundertake exploration of the considerable land area believed to containthe trend, under the pretence of a strategic alliance.

Premium's present corporate strategy is to systematicallydevelop the OSZ; continuing the development of the Friday-PetsiteProject while making new discoveries at the high-priorities in thecentral and northern portions of its land package. This leaves the earlystage exploration and development in the southern portions of the OSZto be advanced by Velocity, expediting the development of the largestamount of land along the gold trend in the most efficient mannerpossible.

The recent staking activities of both companies have led toconfusion regarding the size and location of various claims blockslocated by Velocity and Premium.

In order to remove any confusion, the companies have comparedtheir respective claim locations and where there appeared to be anoverlap one or the other of the companies have agreed to relinquish anyclaim to the area and Velocity will work south, outside of the existingPremium claims south of the UTM NAD83 Zone11m Northing of 5059090. Thisrelease contains a map showing the approximate location of the mineralclaims now held by Premium Exploration and Velocity Minerals.

Click http://bit.ly/PEMClaimClarification for the map.

Qualified Person

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

About Velocity Minerals Ltd.

Velocity Minerals Ltd. is a public company dedicated to theacquisition, exploration and development of molybdenum, gold and othermineral resources. In addition to the Company's two Cassiar, B.C. areaproperties, its Southeastern B.C. gold prospect and its Idaho claims,several other opportunities in the mining industry in North America andelsewhere are actively being pursued.

About Premium Exploration Inc.

Premium is focused on the exploration and development of itsdistrict-sized land package along Orogrande Shear Zone "OSZ" to fulfillits vision of developing a new mining district in North America. The OSZis a 30 km-plus regionally-significant trending structure thatcorrelates with multiple known zones of mineralization and hasstructural control to its gold mineralization, characteristics similarto many large gold belts such as the Carlin Trend of Nevada. Developmentis ongoing at the bulk-tonnage Friday-Petsite Project, the mostadvanced of several known mineralized zones located along the OSZ andrepresents 4% of the OSZ under Premium's control. For additionalinformation, 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.