Premium Exploration Updates on 2008 Drill Program Progress at PGM Chrome Mountain Project, Stillwater Complex, USA

VANCOUVER, BRITISH COLUMBIA–(EMWNews – Aug. 18, 2008) – Premium Exploration, Inc. (TSX VENTURE:PEM) (“Premium”) (www.premiumexploration.com) is pleased to announce that the 2008 Drill Program on the Platinum Group Metals (PGM) Chrome Mountain project is in progress and four NQ core holes are now complete. The Chrome Mountain property is located 1,500 m from the East Bolder Mine (Stillwater Mining Company). Both East Bolder and Stillwater Mines are producing from the highest grade PGM deposit in the world, the JM Reef, in the Stillwater Complex, Montana, USA.

The 2008 program is designed to test what the Company believes to be a potential “feeder zone” for the previously unknown style of PGM mineralization identified at Premium’s 100% wholly-owned Chrome Mountain property. Please click the following URL for the 2008 Drill Plan Map (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field) (http://www.premiumexploration.com/wp-content/uploads/2008/08/2008-proposed-drill-program.pdf).

Drilling is focused on the soil geochemical anomaly which hosts PGM grades up to 1.2 g/t at surface and returned the following highlights from the initial 2007 drill program including Ni and Cu:

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Highlights from the 2007 Chrome Mountain Drill Program Including Ni and Cu
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            From     To   Inte-   Pt + Pd    Pt    Pd     Au     Ni     Cu
Hole ID        m      m   rval   + Au g/t   g/t   g/t    g/t      %      %
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CM2007-09   15.5   22.9    7.3       4.46  1.14  2.88   0.44  0.465  0.173
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CM2007-09 was abandoned at 22.9 m depth
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CM2007-02   39.9   43.9    4.0       3.24  0.97  2.10   0.17  0.252  0.087
            --------------------------------------------------------------
            45.7   48.5    2.7       3.60  1.10  2.37   0.13  0.216  0.062
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CM2007-07  167.0  169.5    2.4       3.55  0.78  2.59   0.17  0.309  0.170
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Please click the following URL for a complete and reformatted table of the 2007 drill results including Ni & Cu (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field) (http://www.premiumexploration.com/wp-content/uploads/2008/08/2007-chrome-mountain-drill-results-including-ni-and-cu.pdf).

Please click the following URL for the 43-101 for the Chrome Mountain Property Package (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field) (http://www.premiumexploration.com/wp-content/uploads/2008/07/ni-43-101-pine-claim-and-chrome-mountain-2005.pdf).

(i) The Rhodium results released on July 16th, 2008 indicate that Rhodium content is approximately 9% of the grade of Platinum (approximately an 11:1 ratio of Platinum to Rhodium), further advancing the theory of a new style of mineralization identified by the 2007 Drill Program. Please click the following URL for the July 16th, 2008 News Release (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field) (http://www.premiumexploration.com/news/premium-exploration-inc-confirms-rhodium-as-9-of-platinum-values-at-chrome-mountain-in-stillwater-complex).

Drilling is being conducted by Beartooth Platinum Corporation (TSX VENTURE:BTP). Beartooth Platinum Corp is Premium’s joint venture partner and the project “Operator”. The Operator has the right to earn a 50% interest in the property by spending $3,000,000 on exploration over three years, at a $1,000,000 per year. This is the second year of the joint venture.

The 2008 drill program is anticipated to be up to 3,000 meters (10,000 ft) consisting of approximately 7 holes on the Chrome Mountain portion of the geochemical anomaly and is designed to:

a) Delineate the new style of mineralization described as a combination of the South African Platreef and UG2 styles of mineralization combined in the same envelope of disseminated chromitite discovered in 2007.

b) Test the emerging model which indicates possibility of high grade zones by targeting the high-grade chromitite area of the PGM anomaly.

These two styles of mineralization are characterized by Platreef-style mineralization as demonstrated in hole CM2007-04 of the 2007 drill program which returned 1.0 g/t PGM + Au over 116.7 meters. CM2007-04 also includes five zones of comparable UG2-style mineralization characterized by these widths and grades: 6.3 g/t PGM over 1.2 m, 4.8 g/t PGM over 1.2 m, 11.9 g/t PGM over 0.3 m, 7.6 g/t PGM over 0.3 m and 6.5 g/t PGM over 0.3 m.

The high grade chromitite associated mineralization within the mineralized envelope at Chrome Mountain reflects a periodic culmination of the process in which very high energy magma pulses undergo turbulent interaction with PGM-enriched residual magmas. The fact that multiple high-grade chromitite intervals appear to be present in this area may also reflect proximity to entry points for new magmas. The lithology is also disrupted and lacks continuity between drill holes indicating turbulent conditions during crystallization. Similarly, the interaction between high-energy fresh magma pulses and older, PGM enriched, residual magmas in the Bushveld magma chamber is thought to have produced the high grade PGM deposits of the UG2 chromitite layer. Please click the following URL for a Stylized Model of the Feeder Zone Concept (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field) (http://www.premiumexploration.com/wp-content/uploads/2008/08/vortex-concept-feeder-zone-stylized-model.pdf)

A large part of the Chrome Mountain target remains untested and the 2008 drill program will delineate the mineralization encountered last year and will also test additional geochemical and geophysical anomalies located near Chrome Mountain.

About the Chrome Mountain Project:

July 24th 2008 – 2008 Exploration Program and Drilling Update on Chrome Mountain

July 16th, 2008 – Confirmation of Rhodium as 9% of Platinum Values at Chrome Mountain

May 22nd, 2008 – 2008 Drill Program Announced at Chrome Mountain

May 15th, 2008 – Review of Chromite Values Announced at Chrome Mountain

March 3rd, 2008 – 2007 Drill Results from Chrome Mountain Property

October 10th, 2007 – Completion of 2007 PGM Drill Program on Chrome Mountain

August 2nd, 2007 – 2007 Fieldwork Program Announced at Chrome Mountain

June 5th, 2007 – Up to $5,000,000 Joint Venture Agreement for Chrome Mountain Project

May 24th, 2007 – Pt and Pd Soil Geochemistry Anomaly Announced at Chrome Mountain

October 10th, 2006 -Strategic Exploration Alliance with Beartooth Platinum Corp.

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), the Company was founded on a team with exploration success, committed to maximizing shareholder exposure to precious metal 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 model where strategically chosen projects are quickly advanced. This approach 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. 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:ca. 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.

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.