Penbar Capital Ltd V.PEM

PEM OROGRANDE SHEAR ZONE

[prospector7]

is massive with visable gold

PREMIUM EXPLORATION INC.

IDAHO GOLD PROPERTIES

OROGRANDE SHEAR ZONE

The Orogrande Shear Zone is a large exploration project:

A 28 km potential high-grade gold mineralizing conduit and feeder

system hosting over 681,000 oz of known gold to date, with the

added benefit of near-term production to offset exploration costs.

Exploration Highlights to December 2008

2

Premium Exploration’s Claim Boundaries along the Orogrande Shear Zone

Buffalo Gulch

Mine Pit Limits - 100,000 oz Au

(Historic)

Updating established permitting

Orogrande

Shear Zone

28 km North to South

110 Claims -

Hosts 50,000 oz Au

(Historic)

Friday-Petsite

531,890 oz Au

NI 43-101 Resource

Zone of historic

Geochemical and Geophysics

and the 2009 drill programs

13 Past Producing

Mines along the

Shear Zone

1. Alice

2. Cu-Au

3. Black Lady

4. Wagner

5. Idaho Champion

6. Gnome

7. Friday

8. Orogrande Frisco

9. Havana

10. Circ Twins

11. Diamond Hitch

12. Twin Buttes

13. Homestake

3

The 28 km long Orogrande Shear Zone hosts four established gold mineralized zones with

open-pit heap leach potential.

• Buffalo Gulch: Near-term production (Historic)

• Friday-Petsite: 531,890 oz gold (NI 43-101)

• 110 Claims: Two known gold zones hosting 50,000 oz (Historic)

Premium’s geologists are the first to interpret the four mineralized zones, in addition to thirteen

past-producing workings and numerous gold occurrences along the Shear Zone, as the result

of a high-grade conduit and feeder model: The Orogrande Shear Zone.

Founded on this new model, Premium intends to renew and develop this gold mining district in

the State of Idaho, USA.

Objective:

Advance Buffalo Gulch into production in order to pave the road for the future development of

the 28 km high-grade gold model.

While advancing Buffalo Gulch into production, systematically explore the Shear Zone

beginning at Friday-Petsite to expand the resource. This will simultaneously audit historic

drilling, add ounces and verify the "southern end" of the high-grade model. Follow this with

exploration at Buffalo Gulch, to verify the "north end" of the high-grade model, and then on to

the 110 claims in the center of the Shear Zone.

• Set a precedent for all future development and production, economically, politically,

environmentally, in the local communicates, in the State of Idaho and particularly in Idaho

County.

• Shorten production and development timelines.

• Create cash flow and offset the exploration and development costs to advance and expand

the existing resources (both historic and NI 43-101) along the Shear Zone utilizing an

organic growth approach.

• Reduce the up front capital costs associated with the development of both the Friday

-Petsite and Buffalo Gulch. .

Orogrande Shear Zone Overview

Advancing the Buffalo Gulch project into production while exploring the Shear Zone

will:

4

Historic Projects Along The Shear Zone

The Orogrande Shear Zone is part of a rift related, brittle, extensional structure existing since

at least Cretaceous time.

Previous operators focused on each surface expression or "deposit" which occur along the

28 km Shear Zone, individually.

After acquiring previous operator’s exploration data from the 28 km zone, including 5 km of

geophysics and identifying ~18 km of consistent gold soil geochemical anomalies, Premium

is the first to lend a high-grade conduit and feeder model to explain the numerous

deposits occurring along the zone.

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Project Locations

The gold properties are located in Central Idaho along the Orogrande Shear Zone. Gold was

originally discovered near Elk City, Idaho in 1861 and Central Idaho produced approximately

4,000,000 ounces of gold from placer and hard rock mines.

Access is good via State Highway 14 from Grangeville, located 60 miles west of Elk City.

6

While advancing Buffalo Gulch permitting, exploration and development of the Friday-Petsite

provides an opportunity for additional discovery in a bullish gold market.

This asset already boasts a 531,890 oz gold resource and is open along strike and at depth.

Objective:

• Explore and develop high-grade zone

• Expand 531,890 oz Inferred gold resource (NI 43-101) to targeted 2M oz to 5M oz gold

• Assess potential second near-term production scenario

Target the high-grade zone for exploration:

• Expand ounces and advance the resource towards the 2M oz to 5M oz asset Kinross

originally targeted for this project

• Potentially discover additional high-grade which in turn provides new flow for market

momentum

• Investigate a second near-term production scenario (pilot plant decision)

• Audit historic work, establishing the "Southern Book-End" of the 28 km high-grade

conduit model

Friday-Petsite

South Orogrande Shear Zone

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Friday-Petsite Geology and Geochemistry

Mesothermal shear-zone of cretaceous and early Tertiary age, intruded by the mineralized

Petsite stock.

Soil geochemistry is effective at delineating the gold mineralization and has outlined an

anomaly in excess of 5 km (16,000 ft) in length long and 1.5 km (4,921 ft) in width.

To date, the 531,890 oz gold resource is contained in ~427 m (1400 ft) of the 5,000 m

(16,000 ft) geochemical anomaly. Kinross targeted 2M oz to 5M oz Au at the project before

placing it on maintenance due to low gold prices.

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Historic 192 Drill Holes at Friday-Petsite

The disseminated shear zone hosted resource consists of 15 million tons at 1.1 g/t Au

(0.0318 opt Au) and was defined after ~$7.0M worth of historical exploration.

This work includes the start of a pre-feasibility study including independent environmental

engineering and mine site studies conducted by Kinross.

Drilling on the Friday-Petsite property 1986-1998

Year Company Type Number Footage

1984-86 Centennial RC 6 1,610

1985-86 Bema RC 48 6,645+

1996 Cyprus/Idaho Consolidated RC 16 6,175

1997 Cyprus/Idaho Consolidated RC 90 35,475

Core BQ 5 2,115

Core HQ 6 2,035

1998 Kinross / Idaho Consolidated Core HQ 12 7,184

2002 Canden / Idaho Consolidated Core NQ 5 1,278

2004 Beartooth / Idaho Consolidated Core HQ 4 1,696

Kinross originally prepared the resource evaluation, which included both the Friday and Petsite

Properties as gold mineralization occurs in a northerly trending, steeply dipping shear zone

that cross-cuts granitoid intrusive rocks on both properties.

Premium published a NI 43-101 January 2008 and reporting a 531,890 oz Inferred

Gold Resource.

Cutoff

Grade

(oz/t Au)

Oxide Sulphide and Mixed Total Inferred Resource

Tons Au oz/t Cantained

Au oz Tons Au

Oz/t

Contained

Au oz Tons Au

Oz/t

Contained

Au oz

0.000 11,978000 0.0130 156,280 58,706,000 0.0117 689,060 70,684,000 0.0120 845,340

0.005 7,440,000 0.0195 145,060 36,945,000 0.0172 635,460 44,385,000 0.0176 780,520

0.010 4,606,000 0.0270 124,360 21,291,000 0.0244 520,380 25,897,000 0.0249 644,740

0.015 2,996,000 0.0349 104,430 13,731,000 0.0311 427,460 16,727,000 0.0318 531,890

0.020 2,133,000 0.0418 89,180 9,299,000 0.0377 350,880 11,432,000 0.0385 440,060

0.025 16002000 0.0484 77,460 6,196,00 0.0455 281,960 7,798,000 0.0461 359,420

0.030 1,270,000 0.0538 68,280 4,609,000 0.0518 238,640 5,879,000 0.0522 306,920

0.035 1,096,000 0.0572 62,700 3,736,000 0.0564 210,700 4,832,000 0.0566 273,400

0.040 788,000 0.0650 51,200 2,997,000 0.0613 183,650 3,785,000 0.0620 234,850

0.045 580,000 0.0733 42,530 2,128,000 0.0693 147,400 2,708,000 0.0701 189,930

0.050 510,000 0.0768 39,190 1,627,000 0.0761 123,790 2,137,000 0.0763 162,980

0.100 80,000 0.1261 10,090 301,000 0.1376 41,420 381,000 0.1352 51,510

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Friday-Petsite High-Grade Highlights

PC008: 7.33 g/t gold over 16.7 meters including

52.05 g/t gold over 1.6 meters

PC010: 4.58 g/t gold over 68.6 meters including

12.11 g/t gold over 19.8 meters

75.09 g/t gold over 1.5 meters

BFD-32: 3.54 g/t gold 25 meters true width including

9.29 g/t gold over 1.9m true width

9.75 g/t gold over 1.3 m true width

BFD-30: 9.33 g/t gold over 2.9 meters true width

BFD-31: 8.29 g/t gold over 13 meters true width

High-Grade Drill Target:

The above high-grade gold intercepts are from the Shear Zone geology and appear to be the

feeders for the low grade resource.

There are 24 holes above 5 g/t gold and over 1.5 m (5 ft).

Although the high-grade zone has undergone very limited investigation via drilling; drilling to

date has outlined the significant 531,890 oz Au resource which encloses the high-grade zone.

District Development Potential:

These drill holes demonstrate the potential tenor of mineralization of the 28 km strike length of

the Shear Zone.

They are the only drill holes to have intercepted the Shear Zone geology to date, leaving

the balance of the 28 km strike of the Shear Zone open for exploration.

In addition, the majority of the high-grade zone is located on patented gound making it an

excellent drill target for exploration and development because it's ideally situated to be a

second potential "near-term" production scenario.

Historic High-Grade at Friday-Petsite

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Historic High-Grade Drill Holes at Friday-Petsite

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Friday-Petsite Property

Selected HQ Core

Drill Hole Composite Assays Drilled by Cyprus Amax and Kinross:

Utilizing a 5 g/t Lower Limit

Drillhole

Depth of Intercept Length of Intercept

From (ft) To (ft) From (m) To (m) Feet Metres Grade

(g/t)

PC006 50.0 55.0 15.2 16.8 5.0 1.53 5.60

PC006 200.0 205.0 61.0 62.5 5.0 1.53 5.30

PC006 215.0 220.0 65.5 67.1 5.0 1.53 15.15

PC007 110.0 115.0 33.5 35.1 5.0 1.53 7.15

PC008 170.0 180.0 52.6 54.1 10.0 3.05 29.02

includes 175.0 180.0 53.4 54.9 5.0 1.53 52.05

PC008 210.0 215.0 64.0 65.5 5.0 1.53 6.35

PC008 300.0 305.0 91.4 93.0 5.0 1.53 5.50

PC010 145.0 150.0 44.2 45.7 5.0 1.53 9.20

PC010 155.0 165.0 48.0 49.5 10.0 3.05 9.35

PC010 175.0 180.0 53.3 54.9 5.0 1.53 9.25

PC010 190.0 210.0 60.2 61.7 20.0 6.10 26.92

includes 195.0 200.0 59.5 61.0 5.0 1.53 75.09

PC010 320.0 325.0 97.5 99.1 5.0 1.53 5.00

PC010 350.0 355.0 106.7 108.2 5.0 1.53 5.00

PC012 110.0 115.0 33.5 35.1 5.0 1.53 6.35

PC014 112.0 114.9 34.1 35.0 2.9 0.88 7.47

PC014 117.0 120.0 35.7 36.6 3.0 0.92 8.61

PC014 617.1 620.7 188.1 189.2 3.6 1.10 7.49

PC014 645.0 650.7 196.6 198.3 5.7 1.74 10.57

PC020 37.0 42.8 11.3 13.1 5.8 1.77 5.43

PC020 142.4 146.0 43.4 44.5 3.6 1.10 5.54

Friday-Petsite Property

Beartooth 2004 Core Drilling

Drillhole

Depth of Intercept Length of Intercept

From

(ft) To (ft) From (m) To (m) Interval

(ft)

Interval

(m)

Grade

(g/t)

BFD-29 164.30 174.86 50.08 53.30 10.56 3.22 1.78

207.90 247.79 63.37 75.53 33.33 10.16 1.24

BFD-30 38.81 49.31 11.83 15.03 10.50 3.20 2.55

135.53 149.01 41.31 45.42 13.48 4.11 9.33

272.07 281.16 82.93 85.70 9.10 2.77 1.82

310.40 334.64 94.61 102.00 24.25 7.39 1.17

338.91 357.08 103.30 108.84 18.18 5.54 1.01

BFD-31 100.52 160.04 30.64 48.78 59.52 18.14 8.29

303.31 358.03 92.45 109.13 54.72 16.68 1.24

BFD-32 139.04 144.75 42.38 44.12 5.71 1.74 4.26

211.94 334.48 64.60 101.95 122.53 37.35 3.54

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Friday-Petsite Property

Selected Reverse Circulation

Drill Hole Composite Assays: Utilizing a 5g/t Lower Limit

Sampling was conducted on 5-foot intervals down-hole

Drillhole

Depth of Intercept Length of Intercept

From (ft) To (ft) From (m) To (m)

Interval

(ft)

Interval

(m)

Grade

(g/t)

PZ014 100.0 105.0 30.5 32.0 5.0 1.53 5.95

PZ015 335.0 340.0 102.1 103.6 5.0 1.53 5.60

PZ016 75.0 80.0 22.9 24.4 5.0 1.53 5.40

PZ018 95.0 100.0 29.0 30.5 5.0 1.53 7.80

PZ018 105.0 110.0 32.0 33.5 5.0 1.53 5.40

PZ018 210.0 215.0 64.0 65.5 5.0 1.53 9.29

PZ018 220.0 225.0 67.1 68.6 5.0 1.53 6.90

PZ018 300.0 305.0 91.4 93.0 5.0 1.53 7.65

PZ018 345.0 350.0 105.2 106.7 5.0 1.53 8.75

PZ019 150.0 175.0 48.8 50.3 25.0 7.63 7.32

PZ019 185.0 190.0 56.4 57.9 5.0 1.53 5.35

PZ024 90.0 95.0 27.4 29.0 5.0 1.53 8.50

PZ027 165.0 170.0 50.3 51.8 5.0 1.53 6.20

PZ034 200.0 205.0 61.0 62.5 5.0 1.53 5.50

PZ047 210.0 215.0 64.0 65.5 5.0 1.53 9.33

PZ052 85.0 90.0 25.9 27.4 5.0 1.53 5.15

PZ052 245.0 250.0 74.7 76.2 5.0 1.53 8.70

PZ055 325.0 330.0 99.1 100.6 5.0 1.53 5.90

PZ064 45.0 50.0 13.7 15.2 5.0 1.53 8.55

PZ066 320.0 325.0 97.5 99.1 5.0 1.53 5.75

PZ080 130.0 135.0 39.6 41.2 5.0 1.53 8.75

PZ080 185.0 190.0 56.4 57.9 5.0 1.53 7.80

PZ080 220.0 225.0 67.1 68.6 5.0 1.53 5.75

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Friday-Petsite

High-Grade Cross Sections

14

Friday-Petsite

High-Grade Cross Sections

15

Friday-Petsite

High-Grade Cross Sections

16

Friday-Petsite

Historic High-Grade Drill Hole Plan with Mineralized Intercepts

17

Polished section photomicrograph of native gold with remnant calaverite surrounded by

tellurate oxidation aggregate and enclosed by vein quartz. Plain light x 440.

Photomicrograph of native gold from the Shear Zone (Visible Gold)

18

Buffalo Gulch

North Orogrande Shear Zone

Take advantage of the historic permitting, engineering, and Plan of Operations at Buffalo

Gulch, based on 100,000 oz Au going into production, to expedite realizing cash flow.

Epitomize the organic growth model by utilizing near-term cash flow for future developments.

Objective:

• Advance permitting to production (approximately 24 months)

• Drill to test the high-grade Shear Zone outside the Buffalo Gulch pit, and further

develop and verify the high-grade model.

Benefits of utilizing this approach:

• Avoids millions of dollars of additional up-front development costs to further develop

both Buffalo Gulch and Friday-Petsite

• Avoids restarting the development and permitting process, an addition of 3 - 5 years

before production

After the first phase of exploration drilling at Friday-Pesite and establishing the "Southern Book

-End" of the model, engaging in an exploration program at Buffalo Gulch could establish the

"Northern Book-End", substantially advancing the high-grade gold model.

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• Open-pit heap leach operation

• Disseminated shear zone hosted Au

• 4.5 M tonnes oxide ore at ~1.0 g/t; 100,000 oz Au (Non NI 43-101)

• Projected production 25,000 oz/yr - 35,000 oz/yr

• All production permits were obtained by Bema Gold Corp. and the project was

under construction when placed on care and maintenance

• Approximately 24 months from production

• Capital costs estimated at $10.2M and required ~six months prior to production

Buffalo Gulch Plan of Operations

20

• Oxide ore from surface to ~250 ft

• Open along strike and at depth

• 95% Au recovery when agglomerated with Portland Cement

• Amenable to cost-effective mining:

• 1:1 Strip Ratio

• Blasting and milling unnecessary

• Conveyor operated

• Estimated cash cost per oz = $360

Buffalo Gulch

Soil Geochemical Anomalies up to 2.2 g/t Au

21

Buffalo Gulch Pit

Is the Shear Zone the high-grade feeder for the disseminated gold

deposit in the pit?

?

?

22

CONTACT INFORMATION

Suite 807

475 Howe Street

Vancouver, BC, V6C 2B3

P. [phone]

F. [phone]

Del Steiner, President & CEO

E. [e-mail]

Christine Kopr, Corporate Communications

E. [e-mail]

Thank you for reviewing the Idaho Gold Project.

For further information, please contact either Del Steiner or Christine Kopr.