Premium Exploration, Inc. Announces Phase II Exploration Program at Past Silver Producer San Pedro Analco Mine, Jalisco Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2008) - Premium Exploration, Inc. (TSX VENTURE: PEM.V) ("Premium" or the "Company") ( www.premiumexploration.com) is pleased to announce a Phase II Exploration Program at Past Silver Producer San Pedro Analco Mine, Jalisco, Mexico.

The commencement of the Phase II exploration program follows up on reported historic drilling of 86 diamond drill holes at the past producing San Pedro de Analco ("SPA") silver mine. Drilling was conducted after production was shut down in 1984 due to low silver prices. Premium is currently reviewing an independent engineering report on the San Pedro de Analco project and in preparation has applied for necessary permitting for a future drill program.

As previously reported in our February 27th, 2007 press release, the Phase I Exploration program by Premium included chip sampling which returned values of:

- 1,390.7 g/t Ag and 0.085 g/t Au over 3.15m at La Esperanza

- 316.1 g/t Ag and 3.44 g/t Au over 2.5m at El Cerrillo

- 534.5 g/t Ag and 0.787 g/t Au over 3.5m at Los Alpes

The San Pedro de Analco project produced from five historic underground mines and Industrias Penoles (MXN: PENOLES-MX), Mexico's second largest mining company, historically produced gold and silver from a mine situated on one of the mineralized structures. It is a low sulfidation silver-gold deposit consisting of at least five vein systems ranging in width from 2-10 m with a strike length of 2 km. The SPA is located approximately 70 km northwest of Guadalajara in the State of Jalisco, Mexico. Premium has an option to earn 100% interest in the property which covers an area of 1,136 hectares.

Historical data and previous drill and sample data are currently being compiled and field-checked in preparation to design and implement a drill program at the mine. In addition to confirming historical drill results, one of the main objectives of the upcoming drill program is following up on the 700 meters of unexplored potentially mineralized structure between the mines, as well as down dip extensions below the historic mines.

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.V), 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/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.

Contacts

Mr. Del Steiner
Premium Exploration, Inc.
President and CEO
(604) 682-0243
(604) 682-2499 (FAX)
Email: dsteiner@premiumexploration.com

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