Premium Exploration Inc (TSX VENTURE:PEM) is pleased to announce a significant drill discovery on the Company’s 100% owned Friday-Petsite property located along the Orogrande Shear Zone “OSZ” District, in Idaho, USA.

Key Points:

• 1.4 g/t gold over 38.4 meters including 9.4 g/t gold over 4.6 meters was discovered 300 meters west of the 549,000 oz inferred gold resource*
  
  
• Drilling encountered the “Monday Fault”, the west-bounding fault of the OSZ parallel to the east-bounding “Friday Fault”
  
  
• The structurally controlled mineralization demonstrated by the parallel Monday and Friday faults correlate with the recent airborne geophysical anomaly that clearly defines the OSZ over 30 km of strike
  
  
• The new gold mineralization encountered at the Friday-Petsite property and the mineralization of the historic Buffalo Gulch 100,000 oz indicated gold resource** are 16 km apart and both associated with the Monday Fault
  
  
• Both the potentially 30 km long Friday and Monday faults have become the targets for the upcoming Phase-Four Drill Program; a plan of operations has been submitted for +120 drill sites along the entire length of the OSZ

• Hole	From (m)	To (m)	Interval (m)	Au g/t
  PFR2010-19	371.6	410.0	38.4	1.4
  including	405.4	410.0	4.6	9.4

  *The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections.*True Widths are estimated to be between 50% and 75% of the drilled interval.
  
  “This new discovery clearly demonstrates that the interpreted Monday Fault has the potential to host another gold zone adjacent to the existing resource at the Friday-Petsite Project”. stated Michael Ostenson, Premium’s VP of Exploration. “Expanding and defining this new target along with the Friday Fault on the +30 km OSZ will clearly become a high-priority for the upcoming 2011 Phase 4 drill program.” The new zone of mineralization at the Monday Fault is 300 meters below surface. Premium intends to complete additional drilling that will trace this zone up-dip towards surface and along strike to the north and south.