premium exploration inc (PEM) Snapshot

Premium Exploration Inc. announced Logan Resources Ltd. has announced an updated mineral resource estimate for the Deposit, one of six zones of known gold mineralization within the Idaho Gold Property, located in north-central Idaho, USA. The updated resource estimate at a 0.45 g/t Au cut-off increases the Friday Deposit to: Indicated: 647,000 oz from 629,000 oz, Inferred: 590,000 oz from 146,000 oz. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral resources are amenable to open pit mining methods and have been constrained using a Lerches-Grossmann optimized pit. Assumptions include $1,500/oz Au, 85% Au recovery, $2.50/tonne mining cost, $2.00/tonne waste mining cost, $12.00/tonne process and G&A cost. No allowances have been made for mining losses and dilution. Pit slope angle of 45deg. The company has elected to use a 0.045 g/t gold cut-off which is greater than the conceptual marginal cut-off of 0.36 g/t. Gold analyses are performed by fire assay/AA finish methods.

Premium Exploration, Inc. announced that it has signed an option and joint venture agreement with Logan Resources Ltd. which affords Logan the option to acquire up to a 75% interest in the Idaho Gold Property. Under the terms of the agreement, Logan can earn a 51% interest in the property ('Interest') by doing the following: Incurring a total of $5,000,000 in exploration, permitting and development expenditures on the Property as follows: $1,500,000 in exploration expenditures on or before 12 months from the closing date; and $3,500,000 in exploration expenditures on or before 36 months from the closing date, making a cash payment of $250,000 to Premium on the closing date. Logan may earn a 75% interest in the Property by doing the following: completing the conditions required to earn the 51%% interest in the property. Issuing 5,000,000 common shares of Logan to Premium. Incurring additional exploration expenditures of $3,000,000 on the property on or before the date that is 60 months from the closing date. A joint venture will be formed between Premium and Logan at the time that Logan earns its 75% interest in the property (or at the time Logan earns a 51% interest in the property and fails to satisfy the conditions required to earn a 75% interest). Once the joint venture is formed, each of Logan and Premium will be responsible for its pro rata share of expenditures on the property thereafter.

Premium Exploration, Inc. announced results for the RC drill hole completed in December 2012, at the Friday Zone on the Idaho Gold Project. The RC drill hole was designed to test the viability of using reverse circulation drilling in an effort to reduce the cost of the in-fill program for the resource. The results appear to be consistent with the resource and previously released core holes drilled in this area; PFR2009-10, PFR2009-12 and PFR2010-23. Due to the grade variability of the resource, a QA/QC analysis is being conducted which will compare the results of the RC hole with the adjacent core holes. Upon completing the QA/QC and economic analysis, Premium will then determine whether to proceed with the RC drill method or return to diamond drill coring. The test hole was drilled within the central portion of the Main Zone of the Friday resource targeting an area with low drill density. It was drilled to the west at a -60 degree dip from the same collar as PFR2010_23 which was drilled at a -70 degree dip on the same azimuth. Total depth reached was 1,000 feet however due to ground conditions the drill hole was stopped prior to reaching its targeted depth and terminated in mineralization. The Friday Zone resource estimate is comprised of 629,000 oz Au Indicated (21.5 Mt @ 0.91 g/t Au at 0.4 g/t cut-off) and 146,000 oz Au Inferred (5.9 Mt @ 0.77 g/t Au at 0.4 g/t cut-off). The resource is at or near surface, and remains open along strike to the north, south and at depth. The resource is one of three known deposits along the Idaho Gold Project.