Premium Exploration Inc.: Clarification of Technical Disclosure and Withdrawal of Prospectus

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/12 -- Premium Exploration Inc. (TSX: PEM)(OTCQX: PMMEF) ("Premium" or the "Company") announces that, as a result of comments received from the British Columbia Securities Commission (the "BCSC") on the most recent technical report (the "Report") by Mark Pfau on the Company's Idaho Gold Project filed on SEDAR on September 30, 2011 dated effective March 28, 2011, the Company has determined that it will not proceed at this time with the contemplated short form prospectus offering (the Offering") of up to $7.5 million, as previously disclosed in the releases dated November 28, 2011 and December 15, 2011. As the Report is not currently compliant under National Instrument 43-101 ("NI 43-101"), the resource estimates disclosed thereunder should not be relied upon until the Company files a technical report which is compliant under NI 43-101.

To address the concerns raised by the BCSC about the Report and the resource estimates contained therein for the Friday-Petsite Zone, the Company has engaged an additional independent qualified person to assist in the update of the Report to bring it into compliance as soon as practicably possible. Accordingly, the new qualified person will review the input database, the assumptions, parameters and methods used to estimate current mineral resources and will revise the estimates as necessary. In addition, other steps will also be taken to make the Report compliant, such as:

--  including complete information about other additional contiguous parts
    of the Idaho Gold Property,
--  removing the zero cut-off grade estimates from the mineral resource
    tables,
--  additional descriptions regarding cross-sectional widths of the Friday-
    Petsite deposit, representative drill sections through the Friday-
    Petsite deposit showing spatial relationships of the mineralized drill
    intersections and composite assay results, and additional explanations
    regarding geological modelling and classification of indicated
    resources,
--  removing references to a previous report (noted as "Tellurian, 2011"),
--  providing further discussion as to the form and condition of legacy
    drill data, and the steps the author took to verify suitability for
    inclusion in the resource estimates,
--  amending references to historical estimates for the Buffalo Gulch and
    Deadwood zones for compliance with NI 43-101 for referencing of
    historical resource estimates, including the appropriate cautionary
    language, and
--  removal of disclaimers of responsibility and restrictions on use and
    reliance which are not compliant with NI 43-101 requirements.

The Company embarked on the Offering by way of a short form prospectus supported by its first annual information form ("AIF"), with the expectation of corresponding disclosure review by the BCSC. The AIF and short form prospectus disclosure is not only part of the Company's financing plans, but also forms part of the Company's ongoing plans for enhanced corporate and technical public disclosure. The Company expects its new additional qualified person to complete the update of the Report by approximately the end of May 2012, which is dependent upon weather conditions allowing access to the property site. As progress continues, the Company will provide further updates as to the timing for its updated Report.

About Premium Exploration Inc.

Premium is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone (the "OSZ") in North-Central Idaho, USA. The OSZ is a 30+ km regionally significant trending structure with multiple know zones of gold mineralization and, similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, 30 km of drill-ready targets, Premium is well positioned to create shareholder value through the exploration and development of this emerging gold district. 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 under the Company's profile on www.sedar.com in accordance with the policies and requirements of the TSX Venture Exchange and applicable securities law. 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.

Contacts:

Premium Exploration Inc.

Mr. Del Steiner

President & Chief Executive Officer

(604) 682-0243

(604) 682-2499 (FAX)
dsteiner@premiumexploration.com
www.premiumexploration.com


Opes Capital Inc.

Ms. Christine Kopr

Corporate Communications

(604) 682-0243

(604) 682-2499 (FAX)
ckopr@opescapitalinc.com
www.opescapitalinc.com