Mr. John Ryan reports

PREMIUM EXPLORATION ANNOUNCES REVIEW OF BUFFALO GULCH RESOURCE AND POTENTIAL FOR HIGH GRADE

Premium Exploration Inc. has completed an internal company review of the Buffalo Gulch mineral resource.

The Buffalo Gulch project sits at the very northern end of the approximate 10-mile Oro Grande shear zone being explored by the company. The Buffalo Gulch project has been explored and evaluated in the past as an oxide resource with recovery via heap-leach and a conventional carbon-in-leach circuit. Past metallurgical testing has resulted in 90-per-cent-plus predicted gold recoveries with agglomeration.

In the past the company has, from time to time, released information regarding the Buffalo Gulch deposit based on readily available historical data that are in the possession of the company. The latest evaluation was completed by chief geologist James Baughman with the assistance of a contracted mineral resource estimation specialist based in Denver, Colo., and confirms the historical estimates of the past work that was completed by Bema Gold and others.

The company is also re-evaluating Buffalo Gulch as a high-grade project, especially in light of the drilling success completed at the Friday gold deposit, roughly 10 miles to the south. Recently the company has leased the Friday high-grade resource to privately held TVL Gold LLC. It is the understanding of the company that TVL plans further exploration and development of the project this upcoming year in accordance with its work commitment.

Structural controls of mineralization for high-grade resources are now better understood as a result of the work completed throughout 2014-2015 and the new data provided by the drill program of last winter. Average depth of the past drilling at Buffalo Gulch was approximately 170 feet. The postulated high-grade feeder structures at Buffalo Gulch would be located at in excess of 500 feet, thus the possible higher-grade feeder structures have not been tested by past drilling.

Additionally there are untested induced polarization chargeability anomalies located over the Buffalo Gulch resource which remain untested. These IP anomalies would indicate a deeper sulphide mineralization zone, which is indicative of a higher-grade gold-pyrite system analogous to that discovered at the Friday high-grade area.

Commented Mr. Baughman, chief geologist: "Regional structural control in this district begins with the formation of an orogenic, deep-seated, low-sulphidation gold system with carbonate/mica alteration with few quartz veins. There was a later barren northwest-trending quartz vein system that is evident in the district. The lack of a gold-rich quartz reef was a problem for historical prospectors and miners as outcropping quartz was a marker for their exploration efforts. Finally, Eocene dacite dikes intruded the shear zone along high-grade gold shears, and is an important marker for delineating and understanding the bonanza zones."

Commented John Ryan, chief executive officer of Premium: "We are excited to continue to evaluate the Buffalo Gulch as an oxide heap-leach and as a possible high-grade prospect. We are also continuing our work in understanding the ore controls on the high-grade potential as we believe that there is very substantial potential for multiple high-grade mines to be developed in the Elk City district. Our superior land package focused on the heart of the main north-south shear zone puts the company in an ideal place to explore and develop this future gold potential."

In other news the company would like to clarify that with respect to its news release as of April 27, 2015, announcing the lease on the Friday project, all dollar amounts mentioned in the release are in U.S. dollars.

Mr. Baughman, a qualified person as defined by National Instrument 43-101, has reviewed this press release and approves of its content.

We seek Safe Harbor.