CALGARY, ALBERTA - Prize Mining Corporation ("Prize") (TSXV:PRZ)is pleased to announce that smelting of 70 kilograms of high grade gold concentrate and 1.5 tonnes of lower grade gold concentrate is underway (see news release dated October 21, 2008). These gold concentrates represent a portion of what was produced from July to September 2008 during the bulk sampling program on the Yellowjacket Zone of the Atlin Gold Property.

Recently, a gold bar weighing 217.36 ounces was poured from the high grade gold concentrate. Earlier this fall a 220.00 ounce bar and a 100 ounce bar were smelted on site (see news releases dated September 3, 2008 and September 26, 2008). A small portion of the high grade gold concentrate has been retained for additional test work. The 1.5 tonnes of low grade gold concentrate is currently being tested for maximum gold recoveries and will be smelted over the next two weeks with the additional gold numbers released when available.

Both the high and lower grade gold concentrates were produced from the milling of 13 bulk sample blocks totaling 2,879.67 tonnes of mineralized bedrock. In 2008, Prize milled 19 bulk sample blocks, but six of the test blocks were extracted from the footwall and hanging wall of the mineralized zone and contained very low or no gold values.

The Company is continuing discussions regarding its application for a Small Mine Permit for 2009. Also, the Company is exploring financing options to enclose and modify the plant for full scale year-round operations.

Linda Dandy, P.Geo., is the "Qualified Person" for the purpose of National Instrument 43-101, who has reviewed and verified the contents of this news release.

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  on SEDAR at www.sedar.com or visit the Prize Mining Corporation website at www.prizemining.com.

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.