PREMIUM EXPLORATION (PEM:TSXV, $0.25) Mkt. Cap $32.6M

Strong Buy (Speculative), Target $1.70, Potential ROR 580%

Michael Starogiannis

Potential Strike Extended at Friday

Premium Exploration released assay results yesterday after market close from the Friday-Petsite zone at its Idaho Gold Project.

Highlights include ( drill map):

o PFR2011-14: 0.4 g/tonne gold over 205.7 metres, including 1.3 g/tonne gold over 11.28 metres and including 1.1 g/tonne gold over 12.81 metres.

o PFR2011-13: 0.5 g/tonne gold over 111.3 metres, including 1.0 g/tonne gold over 14.6 metres.

o PFR2011-12: 0.5 g/tonne gold over 39.3 metres, including 0.9 g/tonne gold over 7.3 metres.

o PFR2011-11: 0.5 g/tonne gold over 24.7 metres, including 0.9 g/tonne gold over 8.2 metres, and 4.5 g/tonne gold over 1.8 metres.

The company provided an exploration update on its other zones at the Idaho Gold Project. At the Friday Zone, the company has completed 17 holes (4,374 metres) and continues to drill along strike towards the north and the south. At the Deadwood Zone, the company has drilled 9 holes (5,917 metres) and continues to drill testing new targets. We are awaiting assay results from 52% of holes completed to-date.

The current results have extended the potential drill tested strike length by 280 metres to the south and were drilled below the Inferred resource in the South Zone. The grades encountered appear to be consistent with previously released drill holes, both adjacent to and above. Overall these results help to confirm our total potential ounce estimate of 1.5 million ounces of gold at Friday-Petsite.

We view the release as positive as it supports our total property potential of 2.7 million gold ounce thesis, as well as continues show that the Friday-Petsite mineralize may extend beyond the northern and southern strike limits defined by the upper blocks of the South, North, and Main zones.

Using a probability-weighted calculation, we currently estimate that Premium Exploration has potential for 2.7 million ounces of gold. We maintain our Strong Buy recommendation and our 12 month price target $1.70 per share.