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Press Release - Premium Exploration Inc.
Exploration Update along 30 Km Emerging Gold District


May 25, 2011 1:10:00 PM


The Company is pleased to announce the start of the 2011 exploration field season; gold-in-soil sampling underway, claims staking, and drilling in progress.

District-Wide Phase-Four Exploration Program Highlights:

  • 3,091 Meters of the +25,000 Meter Drill Program
  • 9 drill holes have encountered alteration & sulphide mineralization
  • 550 Gold-in-Soil samples of the +10,000 sample campaign
  • 30% increase in land position to 172.6 km(2)
"We are pleased with the progress of Phase-Four Exploration; drilling has intersected favourable zones, gold-in-soil sampling is underway, and additional claims have been staked making our property package one of the largest in Idaho," Stated Michael Ostenson, P.Geo., VP Exploration of Premium Exploration. "Drills will be mobilized shortly to the promising Deadwood Zone to begin another year of making new discoveries."

Premium's strategy of drilling structures identified by geophysics and gold-in soil trends has led to 3 gold discoveries and significant resource development; 343,000 indicated and 779,000 inferred gold ounces are hosted in just 0.8 km of structure at the Idaho Gold Project to date. This represents less than 1% of the +60 km of parallel and cross-cutting structures identified on the property.

Drilling Update:


Buffalo Gulch Zone

  • 2 drill-holes in 332.5 meters
  • Both holes encountered alteration & sulphide mineralization consistent with the "OSZ"
  • Drill to return once weather conditions improve
The target zone at Buffalo Gulch is 4 km of the 12 km correlating Gold-in-Soil and Airborne Geophysical anomalies along the main 30 km trend.

Drilling at Buffalo Gulch is designed to test the same geological model tested at the Friday Zone, 20 km south along the 30 km trend, which resulted in 100% success in drilling and increased the Friday-Petsite deposit from 549,000 oz inferred to 880,000 inferred and 343,000 oz indicated gold in Phase-Three.

A historic indicated resource of 110,000 oz gold in 4.8 Mt at 0.8 g/t with 0.4 g/t Au cut-off is hosted along 0.5 km of the 4 km trend and remains open. The last operator in the 1990's focused on defining near-surface oxide mineralization. Targeting gold-in-soil anomalies, they defined the near-surface oxide deposit via shallow, vertical RC drilling and did not investigate potential high-grade structural mineralization at depth; Premium's new geological model.

For the Buffalo Gulch Zone Drill Plan Map, please click: >http://bitly.com/Phase4_FridayZoneDrilling.


Field Season Update:

Gold-In-Soil Sampling:

A total of 550 gold-in-soil samples in the +10,000 sampling program have been taken along the western portion of the Deadwood Zone to further refine drill targets planned for the Phase-Four drill program.

This first stage of sampling is focused on the new "Lucky Strike Structure" previously announced March 29th 2011. The second stage of the gold-in-soil sampling program will be focused to the west and south of the Friday-Petsite resource following the OSZ south to the X Zone.

In-situ gold-in-soil sampling along the Idaho Gold Project has been shown to be a key exploration tool and an excellent representation of the underlying bedrock as the region is un-glaciated.

Claim Staking:

A total of 623 new claims have been staked bringing the Idaho Gold Project land position to 2,127 un-patented lode claims and 5 patented claims for a total of 2,132 claims. The total area has been increased by 30% to 172.6 square km.

For the New Land Position Map, please click:

Qualified Person

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

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is focused on gold exploration at its district-sized Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at >www.premiumexploration.com

Ms. Christine Kopr
Opes Capital Inc.
Corporate Communications
(604) 682-0243
(604) 682-2499(FAX)
ckopr@opescapitalinc.com
target="_new">www.premiumexploration.comhttp://app.simplycast.com/script/redirect.php?e=466&outgoing_idno=5840917&gId=5763767&link_idno=5746304" target="_new">

1 Recommendations
Re: IS PEM on your WATCH LIST?
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Phidias
May 25, 2011 10:02PM
Re: IS PEM on your WATCH LIST?
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Phidias
May 27, 2011 01:15PM
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