Prize Mining Corporation

Prize Mining Corporation

October 05, 2007 16:35 ET

Prize Mining Announces Proposed Acquisition of the Red Ridge Property

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2007) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to report that it has entered into negotiations with Larry Bratvold ("Bratvold") and Brian Scott ("Scott") (Bratvold and Scott are collectively referred to as the "Optionor") to acquire a 100% interest in the Optionor's Red Ridge Gold Project. The Red Ridge Gold Project is comprised of approximately 1,400 acres and is located in the Whitehorse mining district of Yukon Territory.

Prize is pleased with the results of its due diligence review of the Red Ridge Gold Project and now expects to enter into an option agreement pursuant to which it would have the right to purchase a 100% interest in the Red Ridge Gold Project by paying $350,000 and issuing to the Optionor 700,000 common shares of Prize in tranches over the course of the three years following the date of the option agreement. In addition, it is anticipated that the option agreement will provide that Prize will be obliged to incur expenditures on the Red Ridge Gold Project totalling $380,000 over the course of the three years following the date of the option agreement in order to maintain its right to purchase the Red Ridge Gold Project. It is also anticipated that the Optionor will be granted a royalty in an amount equal to 3% of net smelter returns in all minerals produced from the Red Ridge Gold Project and that Prize will have the option to purchase one-half of such royalty for $2,000,000. Additional information regarding the Red Ridge Gold Project and the terms and conditions of the associated option agreement will be announced in due course.

The Corporation also announces that it continues to advance negotiations with the Optionor in respect of the Primrose Moly Project first announced on September 12, 2007.

Although Prize anticipates completing negotiations in respect of both the Red Ridge Gold Project and the Primrose Moly Project soon, there is no certainty that Prize will successfully conclude negotiations with the Optionor and acquire the right to purchase these Projects. The completion of the Transaction is subject to acceptance by the TSX Venture Exchange.

About Prize Mining

Prize Mining Corporation (TSX VENTURE:PRZ) is dedicated to the exploration, discovery and development of precious metal deposits. Prize is exploring for gold in the Atlin area of British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

This news release contains forward-looking information including but not limited to comments regarding the timing and content of acquisitions and upcoming work program and geological interpretations. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release. The words "estimated", "plan", "anticipated", "expected", "intend", believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Prize to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements.


Harry McGucken, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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