Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

January 31, 2007 11:39 ET

Prize Receives Yellowjacket Metallurgical Study Results

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that it has now received the final results of a metallurgical study conducted by G & T Metallurgical Services Ltd. of Kamloops, BC ("G&T Metallurgical") in respect of drill cores taken from holes drilled on the Yellowjacket Zone of Prize's Atlin Gold Property, located near Atlin in northwestern British Columbia. These results are set out in the report (the "Metallurgical Report") of G&T Metallurgical entitled "Preliminary Assessment of Yellowjacket Metallurgy".

Results of the metallurgical study will be used by Prize and its consultants BGC Engineering ("BGC") and Snowden Mining Industry Consultants ("Snowden") to finalize appropriate processing plant specifications for extraction of gold from the 10,000 tonne bulk sample to be taken from the Yellowjacket Zone. The primary purpose for extracting and processing the bulk sample is to assist Prize in mitigating gold assay variabilities associated with the "nugget effect" of the coarse gold mineralization found in the Yellowjacket Zone.

Excerpts from the Metallurgical Report state:

"Prize Mining Corporation is investigating the economic potential of the Yellowjacket Project located near Atlin, British Columbia. As part of this assessment, Prize Mining Corporation through their consultant, Snowden Mining Industry Consultants, requested a proposal for both metallurgical testing and mineralogy work from G & T Metallurgical Services Ltd.

A scope of work was defined and provided to Prize Mining on August 24, 2006. Drill core from two holes was received at G & T Metallurgical on August 31, 2006. The metallurgical test program was carried out during October and November 2006.

Individual drill core intervals from each of the two holes were composited into two separate composites. The top portion of the holes went into one composite and the bottom portion into the other.

Each sample was subjected to gravity concentration, cyanidation of the gravity tailing and flotation testing. Concentrate and tailing samples from the gravity tests were subjected to ADIS scans to characterize gold occurrences in each stream. A Bond ball mill work index test was completed on each composite.

Gravity recovery was high with 80.3 and 68.2 percent of the gold reporting to gravity concentrate for Composites 1 and 2 respectively.

Cyanidation tests on the gravity tailing yielded gold extractions of between 85 to 96 percent and 78 to 93 percent for Composites 1 and 2 respectively. Decreasing the cyanidation feed K80 from 200 microns to 100 microns increased gold extraction from the gravity tail by 12 to 15 percent.

Gold recovery to a flotation concentrate was 95.6 percent for Composite 1 and 53.2 percent for Composite 2. In order to achieve these recoveries, a mass recovery of 10 to 15 percent and 25 to 30 percent was required for Composites 1 and 2 respectively.

Standard FC Bond ball work indices were determined to be 16.8 and 14.1 kWh/tonne for Composites 1 and 2 respectively.

ADIS (Automated Digital Imaging System) scans of the gravity test concentrates detected quite coarse occurrences of gold. The largest piece detected had a gold particle equivalent circular diameter greater than 300 microns.

A gravity test was conducted on each composite to generate samples for inspection, using ADIS scans. The purpose of this inspection is to determine the mode of gold occurrence in each stream. The average equivalent circle diameter for each of the observed particles is also determined.

The following observations are apparent:

- About 70 percent of the gold observed in the Knelson concentrate from Composite 1 was contained in relatively large gangue-gold binary particles. The gold contained within these particles was relatively coarse with an equivalent circular diameter of about 100 microns.

- About 33 percent of the gold observed in the Knelson concentrate from Composite 2 occurred as a gold-gangue binary. The equivalent circle diameter of the gold portion of single particle observed was 310 microns indicating that the gold occurrences are quite coarse.

- The coarse gold observed in both concentrates is in a size range that makes it very amenable to gravity concentration.

- Particles observed in the Knelson tailing from Composite 1 were very fine binary particles with low gold content.

- All of the gold particles observed in the Knelson tailing from Composite 2 occurred as fine liberated gold. The size of this material does not lend itself well to recovery by gravity processes."

Pit excavation and bulk sample extraction are currently in hiatus due to adverse winter weather conditions and will re-commence as early as possible in spring 2007. Prize is using this interim period to aggressively complete the planning and preparation for the milling and processing of the bulk sample.

Ms. Linda Dandy, P.Geo. of P&L Geological Services, is the project supervisor and is the "Qualified Person" for the purpose of National Instrument 43-101 and has reviewed and verified the contents of this news release.

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

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.

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

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