Premium Exploration well underway to 1 Million ounces at Friday Petsite

Premium Exploration announced more impressive intersections that double the downward depth of the Lower Block to 300 meters and remains open at depth and along strike. Todays results, although low grade in nature are starting to reveal the true potential of Friday-Petsite as a massive low grade project similar to massive deposits in the carlin trend in Nevada that have been mined for years at half g/t grade.

They announced..

• 107.9 meters grading .8 g/t gold
• 120.5 meters grading .7 g/t au
• 222.2 meters grading .7 g/t au

I am a big believer in this project and at .50 cents this company is still a screaming buy. All holes have ended in mineralization and some of them ending in higher grade material at 2 g/t+... Premium is definitely in my top 10 gold exploration stocks to own and with the recent news have significantly extended mineralization down depth. In essence they double the size of the lower block with the latest holes.

To get a rough estimate of the size of the lower block... It extends 300 meters along strike so far and 300 meters down dip. So far with 15 holes drilled into the lower block, including the last 3 of last years program PEM has drilled 2500+ meters of mineralized intervals at an average grade of 1.21 g/t au with and average interval of 172.9 meters. Now considering intervals have been terminated in mineralization and in high grade... Backing out the high grade portions or tying to use true widths at this point is mute... especially when just trying to get a rough estimate...

Also trying to do a block model is completely inappropriate with the current information and sporadic spacing of drill holes. Considering that the existing resource overall grade is 1.13.. a 1.21 estimate is good enough for me.

If you take an average grade of 1.21 g/t and an average interval of 172.9 meters and multiply that over the whole lower block of 300 meters strike by 300 meters depth you arrive at 15.56M tonnes grading 1.21 g/t gold which equals 588,000 oz's in addition to the 549,000 oz's inferred contained directly above the new discovery. Add the old resource and the newly discovered Lower Block together and you get 1.14M oz's of gold... Add to that, the resource is open along strike and at depth and most holes terminated in higher grade mineralization, Premium is just starting to uncover the potential at Friday- Petsite.

It certainly looks like at least a million oz's to me and counting at PEM. The market may not react because of the low grade nature of the holes and didn't react to the last ones but today's news is significant and Premium will continue to climb in the long run as they continue to develop this rapidly expanding deposit.

See a map of the drill hole locations...

http://www.premiumexploration.com/wp-content/uploads/2010/09/Phase3_DrillResults.pdf

Read the recent news below..

http://www.marketwire.com/press-release/Premium-Exploration-Resource-Drilling-Expands-Friday-Petsite-Project-All-Holes-Terminated-TSX-VENTURE-PEM-1321958.htm