Vol. 67 - TAKING A SHOT: PREMIUM EXPLORATION

Dear Member,

Our new Featured Company Premium Exploration (PEM:TSXV) is up 16% since our introduction last week. They closed at $0.35 this Friday touching a high of $.40 earlier in the week. Remember that their latest financing was done at $0.40. When we feature a company at Pinnacle you can be assured we have worked closely with management for weeks and know the company and its properties inside and out. Premium is no different and announced a major development in respect to the permitting process of their Buffalo Gulch Gold Mine on Wednesday.

Premium Exploration Announces Update on Buffalo Gulch Permitting

READ NEWS RELEASE

Let's review the details of the Buffalo Gulch Gold Mine which is located on the Orogrande Shear Zone.

There are 3 main points which need to be understood about Buffalo Gulch:

1. This gold target was permitted by Bema Gold Corporation's subsidiary (Idaho Gold Corporation) in 1991 as an open-pit gold mine, but was placed on care and maintenance by Bema just prior to mine construction due to low gold prices at the time.
2. Several historical prefeasibility studies indicated that this target was potentially viable as an open-pit gold mine at a gold price of $450 per ounce.
3. Buffalo Gulch is open along strike to the north, south and down dip.

Deeper drilling is planned at Buffalo Gulch below known mineralization to test a large, IP anomaly which is interpreted to represent mineralization similar to that found at Friday / Petsite (Premium's gold property with a NI 43-101 531,000 oz Au inferred resource).

For all you gold bugs out there, $450 an ounce is a very favorable cost of production. Especially as gold continues to surge as it has in recent days and is once again approaching $900 an ounce. Gold closed at $885.80 an ounce Friday afternoon. At $900 an ounce even a smaller mine can be extremely cost efficient and profitable.

In our opinion the Buffalo Gulch Mine's goal of production is only the tip of the iceberg in respect to Premium and a story behind a bigger story.

Where is the Buffalo Gulch Property located?

In Central Idaho on the Orogrande Shear Zone which has produced over 4 million ounces of gold. The Orogrande Shear Zone is 26 miles long. Premium owns the north and south end of this zone.

Where is the Friday / Petsite Property located?

In the same Orogrande Shear Zone which is only 14 miles south of the Buffalo Gulch Property.

The geologic environment at the Buffalo Gulch property is the same as the Friday/Petsite property, which hosts an NI 43-101 compliant 531,000 oz Au inferred resource. Would it be reasonable to assume that if the Buffalo Gulch Property is developed and mined, the Friday/Petsite Property will eventually share the same fate?

Core drilling on the Friday/Petsite property has returned grades averaging 9 g/t Au (0.289 troy ounce per ton) over a drill intercept of 70 feet (21.3 meters) including intercepts of five feet (1.5 meters) of 67.89 g/t Au (2.183 troy ounce per ton). These grades are very hard to come by. What is crucial to understand is that Friday/Petsite is a defined medium-sized disseminated gold deposit. It is open along strike and at depth and potentially expandable through additional exploration. The NI 43-101 report recommends a staged exploration plan to move the inferred resource up to a mineral reserve. Premium has reported that 4,000 meters of core drilling and a budget of $1.4 million have been recommended for the first phase of drilling. And pending on results from the first phase, a second phase of 8,000 meters of drilling and metallurgical testing would be conducted with a budged of $2.7 million.

Keep in mind these are just two of eight properties Premium lays claims to. There is still plenty more to their story which we will be explaining over the coming weeks.

Last week we explained Del Steiner's (Premium's CEO) accomplishments and why we view him as being the ideal candidate to develop this company in the Idaho region.

Mr. Steiner was the previous CEO and President of Idaho Consolidated Metals which had an IPO price of $0.75 per share and soared to $4.60 per share. In the process the company's market capitalization increased over 2000% to $80,000,000. An important fact to remember is that