Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

September 11, 2008 16:52 ET

Prize Mining Corporation Completes Private Placement of Units

CALGARY, ALBERTA--(Marketwire - Sept. 11, 2008) - Prize Mining Corporation (TSX VENTURE:PRZ) ("Prize") is pleased to announce that it has completed the second tranche of a private placement offering of common shares of Prize ("Common Shares") issued on a tax flow through basis ("Flow Through Shares") and units of Prize ("Units"). 4,600,000 Flow Through Shares were sold at price of $0.10 per Flow Through Share and 205,000 Units were sold at a price of $0.10 per Unit for gross proceeds of $408,050. Each Unit consists of one common share ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share during the period expiring on September 9, 2009 at a price of $0.15 per Common Share.

Finder's fees in the amount of 8% cash and 8% warrants ("Finder's Warrant") were paid to certain finders for a total of $32,800 and 328,000 Finder's Warrants. Each whole Finder's Warrant entitles the holder thereof to purchase one Common Share during the period expiring one year from the date of issuance at a price of $0.15 per Common Share.

The securities issued pursuant to this private placement are subject to a statutory resale restriction period that expires January 10, 2008.

Following the completion of this private placement, Prize has 71,658,845 Common Shares issued and outstanding.

The first tranche of this private placement (the "First Tranche"), in which 1,955,000 Flow-Through Shares and 100,000 Units were sold, was completed on August 18, 2008 as disclosed in the news release dated August 19, 2008. For the First Tranche finder's fees of $5,800 cash and 58,000 Finder's Warrants were paid.

Harry McGucken, President, CEO and a director of Prize, and Brian Ferrell and Daniel Kenney, directors of Prize, purchased 200,000, 250,000 and 100,000 Flow-Through Shares of the First Tranche issuance, respectively.

Prize expects to complete the third and final tranche of this private placement offering by September 19, 2008.

Proceeds of the private placement will be used for the bulk sample (trial mining) processing on the Yellowjacket Zone of Prize's Atlin Gold Properties and exploration activities on Prize's LD claims and the Primrose molybdenum and Red Ridge gold properties. The completion of this private placement is subject to regulatory approval.

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 northwestern British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

Forward-Looking Statements

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. 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. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise. Prize undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

ON BEHALF OF THE BOARD OF

PRIZE MINING CORPORATION

Harry McGucken, President and CEO

The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.

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