Premium Exploration Closes Private Placement

Vancouver, Canada, May 29, 2009 --( Premium Exploration, Inc. (TSX VENTURE:PEM) ("Premium" or the "Company") is pleased to announce that it has closed a non-brokered private placement of $673,900 through the offering of 6,739,000 units (the "Units") at a price of $0.10 per Unit. Each Unit consists of one common share and one warrant with a two-year term with an exercise price of $0.20 in the first year, and $0.50 in the second year. Each warrant entitles the holder to purchase one common share of the Company at the specified exercise price. All of the securities issued pursuant to this private placement will have a hold period expiring four months and one day after the closing date.

The proceeds from the placement will be used for production permitting on the Buffalo Gulch gold project, exploration drilling on the high grade gold zone at the Friday-Petsite property; an NI 43-101 Inferred gold resource of 531,890 troy ounces, contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.017 oz/ton); and general working capital. The funds raised will include up to a 10% finder's fees in cash or shares.

Premium will meet with the driller on the Friday-Petsite property tomorrow to review potential drill sites and road placement. Minor road improvements will begin next week and drilling is anticipated to begin in mid-June.

The private placement is subject to final approval from the TSX Venture Exchange.

About Premium Exploration, Inc.

Premium Exploration, Inc. is a unique explorer and developer of precious metals projects with significant potential for near-term production and growth. Premium's extensive portfolio holds advanced stage gold, silver and platinum group metals projects located in the USA and Mexico. Listed on the TSX Venture Exchange (TSX VENTURE:PEM), Premium has attracted an innovative and successful team of executives, advisors, metallurgists, geological and mining engineers, and consultants who are committed to achieving our plan of discovering and developing projects to production; some of the most profitable stages of exploration.

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.

Premium Exploration, Inc.
Ms. Christine Kopr
(604) 682-0243
Mr. Wilf Struck, P.Eng
Chief Executive Officer
Premium Exploration, Inc.
F: (604) 682-2499