Premium Exploration drills 2.8 m of 10.2 g/t Au


Premium Exploration Inc (C : PEM)
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Last Close 6/11/2008 $0.27
Thursday June 12 2008 - News Release

Mr. Del Steiner reports

PREMIUM EXPLORATION, INC.: DRILLING UPDATE AND IDENTIFICATION OF NEW ZONE AT ALACRAN, NUEVA GALICIA PROJECT, MEXICO

Premium Exploration Inc. has provided an update on its current phase I, 2,000-metre drill program at the Nueva Galicia project in Nayarit, Mexico. Drilling has reached the approximate halfway point (937 metres) with 16 holes completed and two in progress. There are 100 samples from split core in the lab awaiting assay.

To date, geologists at Nueva Galicia have identified three parallel structures over 10 km of strike length. These three structures host five mineralized zones identified at surface by 10 high-grade ore shoots. Within the five zones are 21 historic adits and numerous shafts and pits that were mined by the Colonial Spaniards in the 1,300's. Previous work indicated that one of the ore shoots, Tajitos, was developed over five levels covering 120m of vertical depth and historically produced 150,000 ounces of gold equivalent (ratio 60:1). The historic production has not been verified by the Qualified Person, however, the information is presented to indicate the exploration target.

Drilling is designed to delineate mineralization along strike and down dip from the historic workings at the following five zones:


Buenos Aires, La Palmera, Cholita -- eight adits, two shafts, one decline, two collapsed pits;
Tajitos North and South -- three historical adits;
Alacran -- five adits and one collapsed pit;
Lluvia de Oro -- four historical adits, one shaft, two collapsed pits;
San Mateo: one adit, one collapsed pit.

Premium has drilled two of the five zones. Ongoing mapping and sampling, along with geophysics interpretation are underway, to identify more drill targets:

Buenos Aires: Drill Holes NG07-001 and NG07-002 were drilled from the same set-up, 15m along strike to the north of the shaft of the historic Buenos Aires mine.


NG-07-001: 7.84 g/t Au, 814 g/t Ag over 2.6m starting 24.70m depth
NG-07-002: 2.32 g/t Au, 226 g/t Ag over 4.0m starting at 37.12m depth

La Cholita: Drill holes NG-07-012 and NG-07-013 collared 35m southeast along strike, under the Cholita 2 Adit.


NG-07-013: 8.79 g/t Au, 1309.7 g/t Ag over 1.52m starting at 18.9m depth, including 18.1 g/t gold and 3327 g/t silver over 0.56m;
NG-07-012: 10.2 g/t Au, 309.8 g/t Ag over 2.8m starting at 12.6m depth

Premium is currently drilling two other zones, one of which is Alacran.

Alacran: Historic workings host three adits of which the main adit contains a 1m wide structure visible at surface. Drillhole DDH-NG-08-015 was drilled at an offset of 20m from the principal structure at Alacran with the intention to intercept the structure at a downhole depth of 32m. The structure was intercepted as a 2m true width clay altered breccia from 36.73m - 40.2m depths.

Drilling beyond the principal structure showed promising results and henceforth Premium's geologists continued the drillhole when a potentially large zone was intersected downhole between 90.53m and 100.87m depth (true widths unknown).

This secondary zone at depth may be interpreted as splays related to mineralization observed on surface. Additional splays of massive quartz veining and stockwork were observed to a depth of 114m. Further drilling in the area is ongoing to test the extent and geometry of the mineralized zones encountered both at depth and near surface.

Del Steiner, President and CEO, is quoted as saying, "The high-grade drill results to date and unexpectedly intersecting new zones at Nueva Galicia, not only gives Premium a better understanding of the project, but has added an interesting dimension to the property."

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Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.

© 2008 Canjex Publishing Ltd.