Premium Exploration Encounters 151 Meters (496 Feet) of 2.68 g/t Gold at Its Idaho Gold Project

Premium Exploration Inc.

Metals & Mining

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Premium Exploration Encounters 151 Meters (496 Feet) of 2.68 g/t Gold at Its Idaho Gold Project

January 23, 2014, Couer d'Alene, Idaho - Premium Exploration Inc. (TSX-V: PEM; OTC Pink Current: PMMEF) ("Premium" or the "Company") announces that assay results from drilling the deep zone at the Friday Gold Deposit in Idaho County, ID. The drill hole has confirmed continuity of a high-grade gold zone below the current bulk-tonnage gold resource. Two additional holes have been completed in the deep zone, and drilling is now focused on the shallow high-grade zone at the Friday. The drilling is being done to support a preliminary economic study of the high grade at the Friday deposit and is designed to extend the high grade mineralization found in drill holes detailed in the January 15th, 2014 press release.

Highlights Include:

PFR20013-1: 15.19 g/t gold over 9.14 meters (30 feet),

5.62 g/t gold over 54.1 meters (177.5 feet);

2.69 g/t gold over 151 meters (496 feet)

The ongoing drill program consists of twelve HQ core holes and complete assay results have now been received for the first drill hole PFR2013_1.

Drill hole PFR2013_1 was drilled 27 meters south of PFR2009_10 and intercepted the strongest mineralization at approximately 17 meters due to drill hole deflection. A zone of 54.1 meters (237.7-291.8 meters) encountered strongly silicified, clast-supported breccia rimmed with pyrite. This zone was also encountered in the next hole to be reported, PFR2013_2. A suite of metallic screens will be completed on the high-grade intercepts as well as a selected grade range to better understand gold distribution. Approximately 50 samples will have metallurgical testing work performed in the near future to further our understanding of the high-grade zone.

 |Drill    |Zone  |From  |To (m)|Interval|From     |To    |Interval|Au   |
 |Hole     |      |(m)   |      |(m)     |(feet)dsf|(feet)|(feet)  |g/t  |
 |PFR2013-1|Friday|231.65|382.83|151.18  |760      |1,256 |496     |2.69 |
 |         |      |237.74|291.85|54.10   |780      |957.5 |177.5   |5.62 |
 |         |      |270.51|279.65|9.14    |887.5    |917.5 |30      |15.19|


    • o.The gold grade calculation is a weighted mean with no top cut, and no bottom cut. The grade calculation includes internal waste and low grade sections.

    • o.True Widths are estimated to be between 65% and 75% of the drilled interval.

"The initial results from this program support the current understanding of the geologic and structural controls of the mineralization and will be used in the upcoming Preliminary Economic Study. The high-grade gold intercepts from this drilling are encouraging and will likely have a positive impact on the economics of this project." stated John Ryan, President & CEO of Premium.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices at the Friday- Petsite Property. The program includes security of samples, and drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted into the sample stream. The samples are then boxed and freighted to ALS Chemex Labs in Elko, NV a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). Samples with gold values greater than 10 g/t were re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold.

Qualified Person

The 2013 exploration program is directed by James Baughman, Chief Geologist of Premium Exploration, Inc., who is a Qualified Person as defined by NI 43-101. Mr. Baughman prepared, and approves of the content of this release.

Vancouver Roundup

Premium Exploration will be at the Core Shack, January 28th & 29th in conjunction with the Vancouver Roundup. Core samples from the current round of drilling will be on display.

About Premium Exploration Inc.

The Company's purpose is to efficiently and economically advance their district sized Idaho Gold Project. The Idaho Gold project contains three known deposits. The Friday deposit has an NI 43-101 compliant resource of:

Indicated: 647,000 Au (20.1 MT @ 1.0 g/t Au with 0.45 g/t cut-off)

Inferred: 590,000 Au (20.9 MT @ 0.88 g/t Au with 0.45 g/t cut-off)

The Deadwood deposit and the Buffalo Gulch oxide deposit both have small historical gold resources and both are expandable. Premium Exploration has commenced a preliminary economic study envisioning underground mining of a high grade portion of the Friday deposit.

For More Information Please Contact:

 |Mr. John Ryan, President & CEO |Peter J. Kletas Investor   |
 |P :  (604 )  682 - 0 243 Fax:  |Relations 866-999-6251-Toll|
 |(604) 682-2499  E:             |Free 604-874-7915-Direct   |
 |[email protected] E:|[email protected]|
 |[email protected]    |[email protected] |
 |                               |                           |

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 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. There are no assurances that the Company can fulfill such Forward-Looking Statements and the Company undertakes no obligation to update 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.