Premium Exploration Closes Private Placement and Management Update

Vancouver, Canada, November 12, 2009 --(PR.com)-- Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to announce that it has closed the final tranche of its non-brokered private placement through the issuance of an additional 6,375,000 Units for gross proceeds of $1,275,000.

Each Unit consists of one common share and one common share purchase warrant entitling the holder to acquire an additional share at $0.30 for 18 months from the closing date of the private placement. The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 200% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date. In this event, Premium may accelerate the expiry of the Warrants upon providing 60 days notice to the Warrantholders.

Premium closed the initial tranche for gross proceeds of $1,429,000 through the issuance of 7,145,000 Units (see press release dated October 26th, 2009). Upon completion of the second tranche, Premium will issue an aggregate of 13,520,000 Units for aggregate gross proceeds in the amount of $2,704,000.

The Company will issue 402,500 shares in finder's fees in relation to this tranche of the private placement. The securities issued are subject to a four-month hold period from the date of issuance.

Completion of the private placement is subject to final acceptance from the TSX Venture Exchange. Proceeds from the private placement will be used to continue the development of Premium's key projects and for general working capital purposes.

Management Updates

The Company has appointed Mr. Wilf Struck, P.Eng., CEO, to the Board of Directors where he will assume the position of Chairman of the Board of Directors. The Company welcomes Mr. Struck to the Board and will benefit from his experience serving as a director for other public companies as well as his operational and geological expertise developing the Idaho gold properties over the last 25 years. Mr. Struck has worked closely with Mr. Steiner for over 20 years and the addition of Mr. Struck to the Board and as Chairman is a key part of Premium's business schematic. Mr. Del Steiner, President, will remain on the Board of Directors and but will step down as Chairman of the Board while continuing his role as the Company's President.

"I look forward to being a key member of the Board of Directors and I am excited about guiding Premium Exploration through its next stage of development with the advancement of the gold projects in Idaho. With the close of the second tranche of financing, Premium has gained several significant shareholders that recognize the potential of the gold deposits along the Orogrande Shear Zone in central Idaho and all of our shareholders will be participating in and benefiting from the long-term orderly development of the Company's projects.

This change will allow Mr. Steiner to focus his energy on his duties as President as Premium moves forward in its development and growth. The Board would like to thank Mr. Steiner for his contribution as Chairman of the Board and looks forward to working closely with him while we grow the Company to its full potential" stated Mr. Struck.

The Company is issuing 600,000 share purchase options to consultants and management at an exercise price of $0.25 per share purchase option.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX VENTURE:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.

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.

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