Industrial Alliance: Expanding the Friday Zone with Every Hole

EVENT

On September 20, 2010, Premium Exploration released the results of six additional holes from the ongoing 10,000m Phase-Three drill program at Friday-Petsite.

DETAILS

The six holes all intersected long intercepts of ore-grade material as highlighted in the table below.

Hole ID From (m) To (m) Length (m) Au (g/t)

PFR2010-7 192.9 367.9 175.0 0.6

PFR2010-8 161.9 324.3 162.4 0.7

PFR2010-10 152.7 324.0 171.3 0.8

PFR2010-11 122.2 230.1 107.9 0.8

PFR2010-12 70.0 190.5 120.5 0.7

PFR2010-13 65.8 288.0 222.2 0.7

Note: Hole PFR2010-9 was lost before entering the target zone

Source: Company Filings and Industrial Alliance Securities

SIGNIFICANCE OF RESULTS

These six drill holes, together with the six previously released phase-3 holes, have increased the strike of the lower block from 100 to 300m, essentially doubling the downdip extension of the current resource from 150 to 300m. The deposit remains open along strike to the north and south and at depth (See Appendix 1). Based on drilling completed to date, we have derived a conservative back-of-the envelop estimate of the resource zone of 28.5 to 33.5 Mt with an average grade of .94 to 1.14g/t for 0.85 to 1.2 Moz Au. Moreover, these results re-affirm our view of the potential for the expansion of the Friday Zone and we reiterate our conservative blue-sky estimate of the open-pit mineable resource at 1.5 to 2.5Moz, which assumes that mineralization is continuous for 750m from PFR2010-10 to PFR2009-8. Mineralization may actually extend over a considerably longer strike length as the Friday Fault has been identified over 3,000m in mag geophysics.

ONGOING WORK / RESULTS PENDING

Seven additional drill holes have been drilled along strike to the north and south, the results of which should be released shortly. In addition, the remaining ~3,000m of the 10,000m phase-3 drill program is ongoing at Friday.

CONCLUSION

While a large amount of work is needed to determine the potential for the development of a mine at Friday-Petsite, a considerable upside revaluation of the common shares of the Company is expected over the next 12 to 18 months as the resource potential of the Friday Zone is further confirmed and new targets are developed along PEM’s 28 mile Orogrande Shear Zone land package, which we believe could host several additional multi-million ounce gold deposits.