Premium Exploration Drills 1.14 g/t Au and 127.4 g/t Ag Over 3.65 m at Nueva Galicia Project, Nayarit, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2008) - Premium Exploration, Inc. (TSX VENTURE: PEM.V) ("Premium" or the Company") ( www.premiumexploration.com) is pleased to announce drill results for the silver-gold Nueva Galicia Project in Nayarit, Mexico.

Highlights include:

NG-08-023:     1.14 g/t Au and 127.4 g/t Ag over 3.65 m

NG-08-021:     4.21 g/t Au and 433.5 g/t Ag over 0.70 m
               Including 7.51 g/t Au and 1024 g/t Ag over 0.50 m

NG-08-025:     2.44 g/t Au and 305 g/t Ag over 1.0 m

Previous drilling at Nueva Galicia returned the following high-grade results:

NG-07-001:     7.84 g/t Au and 814 g/t Ag over 2.6 m
               Including 14.79 g/t Au and 1280 g/t Ag over 0.73 m

NG-07-013:     8.79 g/t Au and 1309 g/t Ag over 0.76 m
               Including 18.1 g/t Au and 3327 g/t Ag over 0.28 m

This press release provides the details for core holes NG08-015 to NG08-026. Drilling totaled 927 m bringing the total meters completed at Nueva Galicia to 1,550 m of the initial 2000 m program. Click here for the Nueva Galicia 2008 Completed Drill Program Map: http://media3.marketwire.com/r/ProgramMap.

For previously released results, click here: September 17, 2007 NG Drill Results: http://media3.marketwire.com/r/Sept17DrillResults and March 25, 2008 NG Drill Results: http://media3.marketwire.com/r/March25DrillResults.

Result Interpretation

Drill results from NG08-015 to NG08-26 are encouraging. However, Premium Geologists believe that the brecciated, sheared and broken nature of the mineralized zones, resulted in poor core recovery (0% to 75%) which may have impacted the assays due to the loss of fine particular gold and silver sulphides by washing and do not accurately represent the true grade of the mineralization.

To verify if core loss and sulphide washing were factors affecting Nueva Galicia drill results, Premium implemented a process to recover drill mud for lab analysis. The analysis revealed elevated levels of gold and silver. This indicates that fine-grained mineralization was flushed from the mineralized zones during the drilling process and actual grades are unknown at this time.

As a result, Premium Exploration has since implemented a policy of using a drilling technique utilizing a "triple-tube" to significantly reduce the risk of poor core recovery in the future.

Nueva Galicia Diamond Drilling Significant Assay Summary

                                                 Estimated
                        From      To  Interval        True    Au     Ag
Drillhole                 (m)     (m)       (m)   Width (m) (g/t)  (g/t)

NG08-015               90.50  100.64     10.14        5.07  0.30   49.2
          Including    97.50  100.64      3.14        1.57  0.48   97.7
          Including    93.78  100.64      6.86        3.43  0.41   62.7

NG08-016               27.05   29.40      2.35        1.60  0.07   7.82
          Including    27.05    27.5      0.45        0.31  0.30   36.9

NG08-017                     Core Loss Poor Recovery

NG08-018               67.06   71.20      4.14        2.82  0.40   87.1

NG08-019               52.90   55.55      2.65        1.70  0.23   32.6

NG08-020                     Core Loss Poor Recovery

NG08-021                76.3    77.7      1.40        0.70  4.21  433.5
                       74.25    77.7      3.45        1.73  2.85  356.1

NG08-022                     Core Loss Poor Recovery

NG08-023                76.3    77.7      1.40        0.70  0.19   80.5
                       74.25    77.7      3.45        1.73  1.14  127.4

NG08-024                     Core Loss Poor Recovery

NG08-025               21.60   23.16      1.56        1.00  2.44  305.0
                       18.50   26.16      7.66        4.92  0.58  121.4

NG08-026               20.00   23.16      3.16        2.03  0.46  116.4

QA/QC

A program of Quality Assurance and Quality Control comprised of duplicate sampling and the insertion of blank samples. A total of 343 core samples collected from Holes 15-26 (NG-08-015 to NG-08-026) comprised of 14 blanks and 12 duplicates. Quality assurance samples are inserted prior to shipping to the lab. Results suggest lab assays are within acceptable accuracy limits.

Inspectorate Laboratories analyzed drill core and rock samples. Samples were prepared in Durango, Mexico and pulps sent to Reno, Nevada, USA for assaying. Inspectorate is registered with ISO 9001: 2000 accreditation. The laboratory conducts internal quality checks, including standards and replicate analyses.

All drill core was analyzed using the ICP assay method. Drill core within the target zone, which has coarse 'nuggety' gold, was processed using metallics (screen) fire assaying, in order to improve the accuracy of the results.

Qualified Person

Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the Qualified Person ("QP") responsible for the technical disclosure in this press release, in accordance with 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.V), Premium has assembled an innovative and successful management and advisory team, committed to maximizing shareholder exposure to precious metal 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. 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/pem&#58ca. 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/.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Mr. Del Steiner
Premium Exploration, Inc.
President & CEO
(604) 682-0243
Email: dsteiner@premiumexploration.com

Christine Kopr
Premium Exploration, Inc.
Corporate Communications
(604) 682-0243
(604) 682-2499 (FAX)
Email: ckopr@premiumexploration.com
Website: www.premiumexploration.com