Premium Exploration Inc. Completes Share Consolidation

October 1, 2013, Vancouver, British Columbia - Premium Exploration Inc. (TSXV: PEM; OTC Pink Current: PMMEF) ("Premium" or the "Company") announces the completion of the share consolidation previously announced, and approved by, the Company's board of directors on August 22nd, 2013. Effective as of the close of business on October 1, 2013, the Company completed a consolidation of all of its issued and outstanding common shares, at a ratio of ten (10) old shares of Premium in exchange for every one (1) new share of Premium (the "Consolidation"). The Consolidation was approved by the TSX Venture Exchange on October 1, 2013. Prior to the Consolidation, Premium had 143,153,082 common shares issued and outstanding. Premium now has a total of 14,315,308 common shares issued and outstanding as a result of the completion of the Consolidation.

The Consolidation provides Premium with a stronger platform to access equity markets, raise capital and move the Company's projects forward. Registered shareholders of the Company will, as soon as practicable, receive a letter of transmittal from the Company's transfer agent, Computershare Trust. The letter of transmittal will enable registered shareholders to exchange their old share certificates representing pre-Consolidation common shares for share certificates representing the post-Consolidation common shares.

The Company's common shares will continue to trade under the stock symbol "PEM" and "PMMEF" respectively.

About Premium Exploration Inc.

Premium is focused on gold exploration at its district-sized land package along the Oro Grande Shear Zone (the "OSZ") in North-Central Idaho, USA. The OSZ is a 30+ km regionally significant trending structure with multiple known zones of gold mineralization and, similar to many large productive gold belts, such as Carlin Trend in Nevada. Premium has a proven exploration strategy, 30 km of drill-ready targets, and is well positioned to create shareholder value through exploration and development of this emerging gold district. For additional information, please visit us at www.premiumexploration.com.

For more information, please contact:

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 |Mr. John Ryan President & Chief     |
 |Executive Officer Premium           |
 |Exploration Inc. P: [phone]  |
 |M: [phone] F: [phone] |
 |E:   [e-mail]           |
 |[e-mail]         |
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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.