Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

September 18, 2008 15:52 ET

Prize to Apply for Small Mine Permit Yellowjacket Zone, Atlin Gold Property, BC

CALGARY, ALBERTA--(Marketwire - Sept. 18, 2008) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that, due to the positive progression of the bulk sample, Prize Mining will apply for a Small Mine Permit for the Yellowjacket Zone of its Atlin Gold Property.

"I have just returned from a site visit to Atlin and am extremely pleased with the project's progress and results to date," stated Harry McGucken, President of Prize Mining. "Upon meeting with our consultants onsite, it has been determined that Prize will initiate an application for a Small Mine Permit."

The current milling circuit continues to operate in a smooth, consistent manner, producing a good quality, representative Knelson gravity circuit gold concentrate. The Semi-Autogenous Grinding (SAG) Mill has been loaded and test runs are underway.

Currently, the 15th bulk sample block (blocks average just under 250 tonnes each) is being processed, and the 16th block being screened and crushed in preparation for processing. During the past week two sample blocks (A62 and A68) from the east end of the 70 metre long extraction pit were processed. Along with these blocks, B21 has been processed and currently the plant is running C21. B33 is being screened and crushed in preparation for processing. The B and C level blocks are located in the central portion of the pit area and represent 2nd and 3rd lift extractions (each lift being 2.5 metres in depth).

Processing the B and C blocks in the central portion of the pit is giving the company a good understanding of the continuity of gold mineralization to depth. The following table shows high grade gold assay values from diamond drill intersections in the central pit area which returned good gold values up to a drilled depth of 55 metres (see News Release dated May 13, 2008).



------------------------------------------------------------------------
HOLE # FROM (m) TO (m) WIDTH (m) GOLD (g/t)
------------------------------------------------------------------------
YJ03-01 13.95 19.51 5.56 513.50
------------------------------------------------------------------------
and 21.96 22.87 0.91 21.06
------------------------------------------------------------------------
and 25.00 26.52 1.52 40.42
------------------------------------------------------------------------
and 35.97 39.02 3.05 34.81
------------------------------------------------------------------------
and 42.99 44.21 1.22 57.88
------------------------------------------------------------------------
YJ03-02 50.30 50.91 0.61 16.28
------------------------------------------------------------------------
YJ04-07 38.66 37.16 0.50 24.61
------------------------------------------------------------------------
and 48.85 54.45 6.10 40.10
------------------------------------------------------------------------
including 53.40 53.71 0.31 588.87
------------------------------------------------------------------------
including 53.95 54.45 0.50 98.85
------------------------------------------------------------------------
TW05-01 12.20 12.90 0.70 29.78
------------------------------------------------------------------------
TW05-02 10.67 12.79 2.62 853.29
------------------------------------------------------------------------
including 10.67 11.58 0.91 2397.59
------------------------------------------------------------------------
including 11.58 12.19 0.61 74.51
------------------------------------------------------------------------
and 20.05 41.50 21.45 11.49
------------------------------------------------------------------------
including 24.00 25.29 1.29 26.80
------------------------------------------------------------------------
including 26.82 27.28 0.46 28.22
------------------------------------------------------------------------
including 31.00 31.50 0.50 129.00
------------------------------------------------------------------------
including 34.50 35.50 1.00 16.13
------------------------------------------------------------------------
including 37.50 38.50 1.00 86.83
------------------------------------------------------------------------


As the mineralized structure plunges to the northeast, gold assay results from diamond drill hole intersections have been obtained up to 140 metres in depth (hole YJ04-20 assayed 142.40 g/t gold over 1.0 metres at 140.0 metres depth - see News Release dated May 13, 2008). Management believes that tonnage extracted from the current location only scratches the surface of the mineralized zone.

Gold concentrates produced by the two Knelson concentrators during the block processing continue to be collected, then tabled to re-concentrate the Knelson produced concentrate into a clean, high grade gold concentrate, an intermediate grade concentrate and a magnetic concentrate. Re-tabling of the intermediate grade table concentrate is underway in order to produce larger quantities of higher grade gold concentrate. The higher grade concentrate is amenable to smelting into bars on site, while the lower grade concentrate will be stockpiled for shipment to a smelting facility at the end of the season.

Weekly updates will be provided by news release during the course of the Yellowjacket Zone bulk sample (trial mining) program.

Additional details and information regarding past work conducted on Prize's Atlin Property is set out in past news releases issued and technical reports published by Prize, all of which are available on SEDAR at www.sedar.com or visit the Prize Mining Corporation website at www.prizemining.com.

QUALITY ASSURANCE/QUALITY CONTROL (QA/QC)

Prize follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to ACME Laboratory Ltd. for analyses.

Ms. Linda Dandy, P.Geo., the project supervisor of Prize's trial mining program on the Yellowjacket Zone of the Atlin Gold Property, is Prize's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the Atlin Gold Property. Ms. Dandy has reviewed and verified the technical information contained in 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.

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.

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