July 20, 2011, Vancouver, British Columbia: Premium Exploration Inc. (TSX-V:PEM) (”Premium” or the “Company”) wishes to announce that it has redeemed a total of 94,000 common shares (the “Shares”) of the Company from the Management of Premium. The shares have been redeemed at the most recent, 20 day average market price of $0.43 per Share. The Shares will be cancelled to reduce the number of issued and outstanding listed common shares of the Company in accordance with the policies and requirements of the TSX Venture Exchange (the “Exchange”) and applicable securities laws.

Management of the Company volunteered the Shares to comply with the Exchange requirement to cancel that number of Shares which were previously issued in lieu of cash payment for services of an independent drilling contractor in 2009. Following the redemption, the Company has a total of 130,395,519 issued and outstanding listed common shares.