Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

December 07, 2006 19:07 ET

Prize Mining Corporation Completes Initial Tranche of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2006) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that it has closed the first tranche of its private placement of units ("Units") and flow-through shares ("Flow-Through Shares"). An aggregate of 1,229,000 Units were issued at a price of $0.22 per Unit for gross proceeds of $270,380 and an aggregate of 4,762,374 Flow-Through Shares were issued at a price of $0.27 per Flow-Through Share for gross proceeds of $1,285,841. Each Unit consists of one common share and one-half of one common share purchase warrant ("Warrant"). Each full Warrant is exercisable at $0.35 per common share for a period of one year from closing. The securities issued pursuant to this tranche of the private placement are subject to a statutory resale restriction period of four months, which expires on April 8, 2007. The second tranche of the private placement is expected to be completed shortly.

Finders acting in connection with the initial tranche of the private placement received 485,361 irrevocable non-transferable options to purchase common shares of Prize at a price of $0.22 per share, which may be exercised on or before December 7, 2007.

Proceeds of the private placement will be used to fund the 10,000 tonne bulk sample to be taken by Prize from the Yellowjacket Zone of Prize's Atlin Gold Property and for general working capital. The completion of the private placement is subject to regulatory approval.

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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