FOR IMMEDIATE RELEASE

March 03 2011

Premium Exploration Inc. (TSX-V:PEM) (”Premium” or “the Company”) is pleased to report geochemical results from ~4,500 soil samples taken from the Company’s 100% owned Idaho Gold Project located along the Orogrande Shear Zone in North-Central Idaho, USA. These samples were taken over previously unexplored portions of the Deadwood Zone in order to refine targets identified by airborne geophysics for the upcoming 2011 Phase-Four drill program. The target is open along trend and untested by drilling.

New Deadwood Gold-in-Soil Trend:

• New Deadwood gold-in-soil trend of >20ppb Au is 8 km in length and up to 1 km in width. The anomaly clearly outlines the western margin of the NNE trending Orogrande Shear Zone in an area of multiple NNW trending splay structures.
  
  
• Gold-in-soil results up to 2.0 g/t and comparable to the gold-in-soil anomalies at the Friday and Buffalo Gulch Zones, both of which correlate very well with known mineralization along the Orogrande Shear Zone.
  
  
• Deadwood gold-in-soil anomaly is located:

• • 5 Km north along strike from Friday-Petsite deposit of 549,000 oz inferred gold resource
    (15 Mt @ 1.13 g/t Au with a 0.5 g/t cut-off)

• • 3 Km south along strike from Buffalo Gulch historic 111,000 oz indicated gold resource*
    (4 Mt @ 0.8 g/t Au with a 0.4 g/t cut-off)
    
    
• New gold-in-soil anomaly correlates with airborne geophysics, thus providing clear targets for the Phase-Four drill program

“Drilling based on gold-in-soils combined with geophysics is the most effective exploration strategy at the Idaho Gold Project, proven with 100% drill success at the Friday Zone,” stated Mike Ostenson, VP Exploration of Premium Exploration. “The new Deadwood Zone gold-in-soil results correlate with potential mineralized fault structures identified by geophysics giving Premium numerous high-priority targets along the new 8 Km trend.”




2010 Soil Sampling Program
The gold-in-soil sampling program was targeted on the complex structural corridor revealed by the airborne geophysics in the Deadwood Zone and was designed to refine drill targets for the upcoming Phase-Four drill program scheduled to begin March 21, 2011.

The survey was conducted on a grid with 200 meter north-south spacing and 25 meter east-west spacing. The soil samples were submitted for multi-element analysis’ providing Premium with potential pathfinder elements.

As a result of the strong anomaly, Premium increased its land position by 328 claims in the Deadwood Zone.

Phase-Four Exploration
Premium has received IP Di-Pole Di-Pole geophysics conducted in Q4 2010 and anticipates releasing results as soon as they have been analysed. With the new IP data, drill targets are being refined and prioritized for the upcoming Phase-Four program scheduled to begin late March 2011 and drill-site permitting is currently on track for +25,000 meters of drilling. The exploration program will also include up to 10,000 soil samples with additional geophysics.

The Friday-Petsite resource will also continue to be developed focusing on demonstrating the potential footprint along strike with large +250 meter step-outs to the north and south.

Further exploration on the new Monday Fault Zone discovery will be followed up with a combination of soil sampling, geophysics, and drilling.

*Buffalo Gulch Historic Resource
The Buffalo Gulch resource estimate by Idaho Gold Corp in was reviewed by Micon International in 2004, and they concluded that the Buffalo Gulch property had historical Mineral Resources of about 5 million tons averaging 0.023 oz/ton Au (4.5 million tonnes at 0.8 g/t Au), comparable to an indicated resource. No cut-off grade was provided. Estimates of gold resources are historical in nature, predate and are noncompliant with NI 43-101. Premium is not treating the historical estimate as current mineral resources or reserves. Premium has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. The historical classes used by Idaho Gold are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.

Quality Assurance
The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company’s News Releases of July 9th, 2009 and December 29th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following samples with visible gold.

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.

For more information, please contact:

Mr. Del Steiner, JD.
President
Premium Exploration Inc.
(604) 682-0243
(604) 682-2499
e: dsteiner@premiumexploration.com
w: www.premiumexploration.com

Ms. Christine Kopr
Corporate Communications
Opes Capital Inc.
(604) 992-1831
e: ckopr@opescapitalinc.com
www.opescapitalinc.com

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.