Penbar Capital Ltd V.PEM

NEWS - PP

[yf4l8888]

Acceleration clause - maybe this means they are confident this is attainable in less than the warrant period?

Premium Exploration Announces Private Placement

Sep 11, 2009 (TheNewswire.ca via COMTEX News Network) --

(via Thenewswire.ca)

VANCOUVER, BRITISH COLUMBIA (September 11, 2009) - Premium Exploration Inc. (TSX-V:PEM) ("Premium") is pleased to announce its intention to raise up to CDN$3,000,000 through a non-brokered private placement of 12,000,000 Units at $0.25 per Unit. Each Unit will consist of one Common Share and one-half of a non-transferable Warrant. Each whole Warrant will be exercisable for a period of two years at a price of $0.35 in the first year and $0.50 in the second year.

The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 100% 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 30 days' notice to the Warrantholders.

The proceeds from the private placement will be used to:

-Further exploration, including drilling, on Friday-Petsite's (NI 43-101) 531,890 oz inferred gold resource;

The Phase I Drill Program successfully demonstrated continuity of this gold mineralized zone. The Phase II Drill Program is designed to delineate the gold mineralized zone to the north and south of the existing resource. This program will further define the target which will have significant implications for the size potential of the mineralized envelope.

-Advance ongoing production permitting on the Buffalo Gulch project;

-Review exploration on the Chrome Mountain property in Montana in anticipation of a comprehensive exploration program in 2010;

-Conduct general exploration on the San Pedro Analco project in Mexico; and

-Provide general working capital.

-The funds raised will include up to 7% finder's fees in cash or shares. The private placement is subject to approval from the TSX Venture Exchange.

About Premium Exploration Inc.

Premium Exploration Inc. (TSX-V: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.

For More Information Please Contact:

Mr. Wilf Struck, P.Eng.Chief Executive OfficerPremium Exploration Inc.P: [phone]F: [phone]Email: [e-mail] Christine KoprCorporate CommunicationsOpes CommunicationsP: [phone]F: [phone]Email: [e-mail]

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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