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Premium Exploration Provides Update on Its Nueva Galicia Project, Nayarit, Mexico

September 18, 2008

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 18, 2008) – Premium Exploration, Inc. (TSX VENTURE:PEM) (“Premium” or the “Company”) (www.premiumexploration.com) is pleased to announce that it has completed a total of 26 diamond drill holes at the Silver- Gold Nueva Galicia Project located near the town of Compostela, Nayarit, Mexico. The drill program totaled 1,550m of the 2,000m Phase I Program and the results for the first 14 drill holes (DDH- NG07-001 – DDH-NG07-014) were released in our press release dated June 12th, 2008. This press release provides the details for core holes DDH-NG08-015 – DDH-NG08-026 completed between May-August 2008 and totaled 927m of the 1,550m of drilling. Drilling has been suspended due to weather and to permit Premium geologists time to receive the assays from the assay lab and interpret the geologic and assay information. The updated geologic knowledge will be utilized to design the next phase of drilling. A map of the Phase I Drill Program Drill Holes (http://media3.marketwire.com/r/phaseIdrill) may be viewed by clicking the link.

Highlights of the Drill Program to Date Include:

Buenos Aires Zone

– 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 Zone

– NG-07-012: 10.2 g/t Au, 309.8 g/t Ag over 2.8m starting at 12.6m depth

– 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

Alacran Zone

Diamond drill holes NG08-015, NG08-018 and NG08-020 were placed to test for the Alacran principal structure in the Alacran zone. DDH- NG08-015 was sited approximately 20m from a main mine working at an azimuth of 240 and a dip of -60 degrees with a total depth of 114.91m. Drilling intercepted two major zones, with the first zone located at a downhole depth of 36.73m which intersected 3.47m of quartz breccia, while the second zone was encountered at a depth 90.53m and was a zone of brecciation, quartz veining and alteration. DDH-NG08-018 was located at the same collar of DDH-NG08-015 at Alacran zone with a total depth of 83.82m (azimuth 240, dip -45 degrees) and was designed to determine dip and vertical extent of the Alacran structure. The drill hole successfully intersected a massive quartz zone at a downhole distance of 11.5m. DDH-NG08-020 was designed to intersect the deeper Alacran structure and to create a fan with DDH-NG-08-015 (240, -60), and had the same collar as DDH- NG-08-015 and DDH-NG08-018. The drill hole had a total depth of 126.8m (azimuth 268 degrees, dip of -60 degrees) and was drilled to test the Alacran structure down dip from the previous hole. The drilling intercepted a breccia at a 74.5m downhole depth which had a width of 2.8m.

NG08-024 (azimuth 80 degrees, dip of -50 degrees, total depth of 35m) was designed to intercept the Alacran structure at a more shallow depth above holes DDH-NG08-015, 018, and 020. Difficult drilling conditions and poor core recovery necessitated the abandonment of this hole prior to reaching the target depth.

Buenos Aires and Lluvia do Oro Zones.

Four diamond drill holes also explored a gold and silver bearing structure between Buenos Aires and Lluvia de Oro. DDH-NG08-016 had a total depth of 68.3m (azimuth 240 degrees, dip -47 degrees) and intercepted a zone of weak mineralization zone at 27.05m downhole depth associated with the structure running between Buenos Aires and Lluvia de Oro. DDH-NG08-021 was drilled at the same location with a steeper dip to intercept the structure below the Lluvia de Oro shaft (azimuth 261 degrees, dip of -60 degrees, total depth of 101.1 m) and had two good intercepts. One intercept at 39.5m-48m corresponding to the down dip extension of the Lluvia de Oro shaft mineralization and the second at 57m. which was a breccia zone with heavy manganese mineralization.

DDH-NG08-017 was designed to intercept a subvertical quartz vein structure visible on surface (total depth of 79.5m, azimuth 255 degrees, dip -45 degrees), between the Buenos Aires and LLuvia the Oro workings and successfully intersected a structure at a 12.1m downhole depth consisting of a brecciated zone with heavy silicification including proustite group ruby silver sulphides. DDH- NG08-019 was drilled at the same location as DDH-NG08-017 (total depth of 77.25m. azimuth 255 degrees, dip of -61 degrees) and intercepted a 3.04m thick mineralized structure at a down hole depth of 52.96m consisting of massive quartz veining breccias and stockwork.

La Cholita Zone

Diamond drill hole NG08-022 was drilled at La Cholita to test two parallel structures below known workings. The hole was abandoned at 28.05m due to difficult drilling conditions which resulted in very poor recovery.

La Palmera Zone

Diamond drillhole NG08-023 was drilled at the La Palmera project area and was designed to intercept two parallel structures mapped on the surface in northern Cholita zone. The hole (azimuth 210 degrees, dip -50 degrees, total depth 82m.) intercepted a large quartz breccia zone from 50 – 55m interpreted to be the La Palmera structure.

San Mateo Zone

DDH-NG08-025 (AZ 060 degrees, Dip -60, TD 44.5m) and DDH-NG08- 026 (AZ 040 degrees, Dip -60, TD 23.16m) were designed to test the San Mateo structure at depth to corroberate additional structures noted by previous operators and based on samples collected inside the mine, as well as at the base of hill.

DDH-NG08-025 intercepted a weakly to moderately altered structure at a 20m depth. A broad zone with high density of quartz stringers sampled to test dissemination possibilities. DDH-NG08-026 had difficult drilling caused by a large void (possible mine?) encountered at 10 meters downhole depth and was abandoned before reaching its target depth. The hole terminated in mineralization, with a recommendation to step back and drill another hole.

All the core has been logged and sampled under the direct supervision of Premium’s contract geologist. The core and samples are stored in the secure compound at Premium’s field office located in Compostela. Once the core is sampled it is sent to Inspectorate, Labs, a well known certified lab, head quartered in Houston, Texas. Details on the analysis will be provided once all of the assays have been received. Final assays are expected in 4 weeks and will be released once all of the assays have been received.

The next phase of drilling will be designed once the results from the completed program are evaluated and assessed.

Qualified Person

Mr. Wilf Struck, P.Geo is the Qualified Person for the technical information in the news release under National Instrument 43-101.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique precious metals explorer focused on Mexico and the USA. Listed on the TSX Venture Exchange (TSX VENTURE:PEM), the Company was founded on a team with exploration success, committed to maximizing shareholder exposure to precious metals discovery, the most profitable stage of exploration. Premium’s portfolio holds gold, silver and platinum group metals projects in various stages of exploration, from grassroots to near- term production. Premium’s business model utilizes the joint venture approach where strategically chosen projects are quickly advanced. This model allows the Company to focus its exploration efforts in under-explored precious metal belts that would allow for profitable extraction, with minimal political, social or environmental risks. Additional information on the Company may be found at http:// www.premiumexploration.com.

All prospective and current shareholders of Premium Exploration are invited to join the company’s official investment forum exclusively at Pinnacle Digest: http://www.pinnacledigest.com/ company/pemca. The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at http://www.pinnacledigest.com.

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