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Re: News Releases - Friday, October 05, 2007
Prize Mining Announces Proposed Acquisition of the Red Ridge
Property
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CALGARY, ALBERTA --- Prize Mining Corporation ("Prize") (TSXV: PRZ) is
pleased to report that it has entered into negotiations with Larry
Bratvold ("Bratvold') and Brian Scott ("Scott") (Bratvold and Scott are
collectively referred to as the "Optionor") to acquire a 100% interest
in the Optionor's Red Ridge Gold Project. The Red Ridge Gold Project
is comprised of approximately 1,400 acres and is located in the
Whitehorse mining district of Yukon Territory.

Prize is pleased with the results of its due diligence review of the
Red Ridge Gold Project and now expects to enter into an option
agreement pursuant to which it would have the right to purchase a 100%
interest in the Red Ridge Gold Project by paying $350,000 and issuing
to the Optionor 700,000 common shares of Prize in tranches over the
course of the three years following the date of the option agreement.
In addition, it is anticipated that the option agreement will provide
that Prize will be obliged to incur expenditures on the Red Ridge Gold
Project totalling $380,000 over the course of the three years following
the date of the option agreement in order to maintain its right to
purchase the Red Ridge Gold Project. It is also anticipated that the
Optionor will be granted a royalty in an amount equal to 3% of net
smelter returns in all minerals produced from the Red Ridge Gold
Project and that Prize will have the option to purchase one-half of
such royalty for $2,000,000. Additional information regarding the Red
Ridge Gold Project and the terms and conditions of the associated
option agreement will be announced in due course.

The Corporation also announces that it continues to advance
negotiations with the Optionor in respect of the Primrose Moly Project
first announced on September 12, 2007.

Although Prize anticipates completing negotiations in respect of both
the Red Ridge Gold Project and the Primrose Moly Project soon, there is
no certainty that Prize will successfully conclude negotiations with
the Optionor and acquire the right to purchase these Projects. The
completion of the Transaction is subject to acceptance by the TSX
Venture Exchange.

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 Fri Oct 5, 2007 at 1:54:03 PM Pacific Time
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