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Re: News Releases - Wednesday, September 12, 2007
Prize Mining Announces Proposed Acquisition of the Primrose
Molybdenum Property
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CALGARY, ALBERTA --- Prize Mining Corporation ("Prize") (TSXV: PRZ) is
pleased to report that it has signed a binding letter of intent ("LOI")
that sets out certain basic terms and conditions by which Prize may
enter into an option agreement or some other mutually acceptable
arrangement (the "Transaction") with Larry Bratvold ("Bratvold') and
Brian Scott ("Scott") (Bratvold and Scott are collectively referred to
the "Optionor") to acquire a 100% interest in the Optionor's Primrose
Molybdenum Project ("Primrose Moly Project").

Prize also announces that it is satisfied with the results of its due
diligence review of the Primrose Moly Project and will now proceed with
the negotiation with the Optionor of definitive documentation (the
"Transaction Documents") in respect of the Transaction. Prize and the
Optionor agreed in the LOI that the Transaction Documents would provide
Prize with the right to purchase a 100% interest in the Primrose Moly
Project by paying $350,000 and issuing to the Optionor 550,000 common
shares of Prize in tranches over the course of the three years
following the date of the Transaction Documents. In addition, Prize and
the Optionor agreed that the Transaction Documents would provide Prize
with the obligation to incur expenditures on the Primrose Moly Project
totalling $380,000 over the course of the three years following the
date of the Transaction Documents in order to maintain its right to
purchase the Primrose Moly Project. The LOI also provides that the
Transaction Documents will provide that upon the completion of the
purchase of the Primrose Moly Project, the Optionor will be granted a
royalty in an amount equal to 3% of net smelter returns in all minerals
produced from the Primrose Moly Project and that Prize will have the
option to purchase one-half of such royalty for $2,000,000.

About the Primrose Moly Project
The Primrose property consists of 11 mineral claims (4,450 hectares)
located in the Atlin Mining District, south of Whitehorse, Yukon, near
the BC/Yukon border. Roads and infrastructure are located 14 miles
north at the Mt Skukum minesite. The railway at Bennett is 19 miles to
the east.

The property lies near the northeastern border of the wide
northwest-trending belt of "Coast Intrusions" of Jurassic-Cretaceous
age. It is situated just off the southwest corner of the Bennett Lake
Cauldron Subsidence Complex and its related ring dykes. The Mt Skukum
and Berney Creek ore bodies lie approximately 14 miles north of the
property and the Adanac Molybdenum property at Ruby Creek near Atlin
lies 100 miles to the east.

The chief lithology underlying the property is granite alaskite grading
to quartz monzonite. Occurring within the outcrop area of the granite
is a strong colour anomaly and well-developed fracture-zone, five by
one kilometer in extent. Parallel tributary creeks may represent areas
of more intense fracturing.

Limited prospecting in 1969 and 1978 located widespread molybdenum
mineralization within and beyond the fracture zone. This occurs in four
modes:

1. as medium to coarse disseminations in granite
2. as coarse blebs and rosettes lining and within quartz veinlets
3. as medium to coarse blebs along fractures
4. as very fine blebs and streaks lining micro-fractures

The outer limits of MOS2 mineralization were not met over the extensive
area examined. All showings observed on the western slopes were in
rusty granite, but many boulders of unaltered non-ferruganous,
molybdenite-bearing intrusive rock were seen in creek bottoms,
indicating that the mineralized zone extends to the east beyond the
limits of the colour anomaly.

The fact that the 1969 prospecting located several boulder trails of
molybdenum bearing rocks on the eastern slope of the mountain verifies
this indication. Samples from these boulder trains assayed 0.41% and
0.549% molybdenite.

The "main showing" examined in 1978 by geologists for Pinto Resources
is a 250 meter exposure of continual molybdenum consisting of very fine
blebs lining microfractures in the bottom of a creek. Fracture density
here is more than 15 per foot. This area represents the least leached
area and if the rock is representative of the leached area,
considerable molybdenum may exist below the oxidized cap.

Sphalerite, galena, chalcopyrite, cassiterite and florite occur in the
southern part of the property, mostly associated with fracture zones
and quartz veinlets. A three meter wide, zone of high grade sphalerite
and galena occurs, with sulphides forming sub-parallel bands. Although
more work is needed an aureole of polymetallic mineralization around a
molybdenum core has been suggested. The geology of the property appears
to be favourable for the occurrence of a "porphyry type" molybdenum
deposit.

Regional geochemistry surveys taken by the BC Government have
identified gold, silver, zinc, molybdenum, and lead anomalies, over the
95th percentile, on the property.

The information set out above was compiled from a 1992 survey by
British Columbia Ministry of Energy, Mines and Petroleum Resources as
part of the Regional Geochemical Survey Program.

The foregoing suggests that the potential exists on the Primrose
property for a low grade, large tonnage, fracture-controlled molybdenum
+/- tin deposit. In short, favourable features of the property include:

.. Strong fracture system over 5.5 x 1 km area
.. Strong pyritization accompanying fracturing
.. Presence of widespread polymetallic mineralization, including Mo, Sn,
Zn, Pb, and Cu, with Mo occurring dominantly along fractures.
.. Previous exploration has also identified significant, disseminated
and vein molybdenite over wide-spread areas of the property including
the western slopes, the summit, and the eastern slopes of the mountain.
.. Highly leached surface area with significant (250 meter) gully
exposure of continuous Mo mineralization suggesting higher grade
mineralization exists under the leached cap.
.. Large unexamined regions of the property with the limits of Mo
mineralization yet to be determined. In addition, ice fields in the
northern cirques have receded greatly since 1969 exposing new areas
next to Mo boulder trains to be explored.
.. Adjacent to the Bennett Lake volcanic cauldera and its associated
ring dikes.

Should the Optionor and Prize finalize negotiations and enter into the
Transaction Documents, Prize anticipates carrying out a work program on
the Primrose Moly Project as described below.

1. Prepare base maps and compile all available geological, geochemical,
and claim data, including air and satellite images used to map
lineaments and variation in textiles to improve on current knowledge of
structure and lithologic distributions.
2. Follow-up prospecting, mapping and trenching of mineralized areas
identified in previous exploration with emphasis on fracture density
and rock alteration. Trenching and surface blasting to penetrate below
the strongly leached cap.
3. Rock geochemistry survey to attempt to define a W or Sn-W aureole
around a MO core in the host granite.
4. Geophysical techniques, including Induced Polarization,
Electromagnetics, and Magnetics should be carried out, at least on a
reconnaissance basis, to aid in understanding the location and geometry
of mineralized zones.
5. Based on results of 1, 2, 3 and 4, a program of diamond drilling to
test the mineralized zones at depth.

There is no certainty that Prize will successfully conclude
negotiations with the Optionor and acquire the right to purchase the
Primrose Moly Project. The completion of the Transaction is subject to
acceptance by the TSX Venture Exchange.

Mr. William Dynes, P. Geol. is the Qualified Person, as defined in NI
43-101, who has reviewed and verified the scientific and technical
mining disclosure contained in this new release.

About Prize Mining
Prize Mining Corporation (TSXV: PRZ) is dedicated to the exploration,
discovery and development of precious metal deposits. Prize is
exploring for gold in the Atlin area of British Columbia, Canada and
for nickel-copper-palladium and platinum on the Muskox Layered
Intrusion in Nunavut, Arctic Canada.

This news release contains forward-looking information including but
not limited to comments regarding the timing and content of
acquisitions and upcoming work program and geological interpretations.
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.

ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION

"Harry McGucken"

Harry McGucken
President and CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Prize Mining Corporation
Trent Dahl
Investor Relations
604-684-4743 ext. 228 or Toll Free: 1-866-684-4743 ext. 228
Email: info@prizemining.com
Website: www.prizemining.com

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

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Copyright (c) 2007 PRIZE MINING CORP. (PRZ) All rights reserved. For
more information visit our website at http://www.prizemining.com/ or
send mailto:info@prizemining.com
Message sent on Wed Sep 12, 2007 at 10:03:42 AM Pacific Time
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