Prize Mining Corporation

Prize Mining Corporation

May 12, 2006 16:42 ET

Prize Mining Corporation Closes on $102,600

CALGARY, ALBERTA--(CCNMatthews - May 12, 2006) - Further to its press release dated May 5, 2006, Prize Mining Corporation (TSX VENTURE:PRZ) ("Prize") announces that it has closed on one additional late subscriber as per its previously announced private placement of units ("Units") for proceeds of $102,600 by the issue of 228,000 Units at the price of $0.45 per Unit. A total of $2,169,200 was raised by Prize under this private placement.

Each Unit is comprised of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant is exercisable at a price of $0.65 per Common Share for a period of two years from closing (the "Warrant Term"). If, during the Warrant Term, the Common Shares trade at or above Cdn. $0.85 for a period of 20 consecutive trading days, Prize will notify the warrantholder to exercise the Warrants at a date no later than 30 calendar days after the notification date. The securities issued are subject to a statutory resale restriction period of four months, which expires on September 13, 2006.

Proceeds of the private placement will be used to fund the scoping study recently initiated by Prize. Funds will also be used for development drilling on the Yellowjacket Zone of Prize's Atlin Gold Property, for further exploration of Prize's LD Properties and other areas of the Atlin Gold Property and for general working capital. The completion of the private placement is subject to regulatory approval.


"Harry McGucken"
Harry McGucken
President and CEO

Prize Mining Corporation is a Tier One Company listed on the TSX Venture Exchange (symbol: PRZ-V). The Company is exploring for Gold in the Atlin area of British Columbia, Canada and its Nickel-Copper-Palladium and Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

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