Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

December 29, 2006 09:30 ET

Prize Mining Corporation: Completes Third and Final Tranche of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Dec. 29, 2006) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that it has closed the third and final tranche of its private placement of units ("Units") and flow-through shares ("Flow-Through Shares"). An aggregate of 281,818 Units were issued at a price of $0.22 per Unit for gross proceeds of $62,000 and an aggregate of 870,500 Flow-Through Shares were issued at a price of $0.27 per Flow-Through Share for gross proceeds of $235,035. 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 29, 2007.

Finders acting in connection with the third tranche of the private placement received an aggregate fee of $14,089.60 and 64,044 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 28, 2007.

The total amount raised by Prize under this private placement was $2,427,086 consisting of an aggregate of 2,070,818 Units issued at a price of $0.22 per Unit for gross proceeds of $455,580 and an aggregate of 7,301,874 Flow-Through Shares issued at a price of $0.27 per Flow-Through Share for gross proceeds of $1,971,506.

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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