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Re: News Releases - Tuesday, April 03, 2007
Prize Purchases Knelson Gravity Processing Plant
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CALGARY, ALBERTA -- Prize Mining Corporation (TSXV: PRZ) is pleased to
announce it has commissioned Knelson Gravity Solutions to build a
3-cycle processing plant for the bulk sampling (trial mining) program
to be conducted on the Yellowjacket Zone of Prize Mining's Atlin Gold
Property in northwestern British Columbia. Along with the processing
plant, Prize Mining has also purchased a Cedarapids two trailer
jaw/rolls 50 tonne per hour crushing unit and has leased a 7' x 8'
Allis Chalmers Ball Mill and an 800kw generator. The equipment is all
being mobilized to site for anticipated crushing and processing. This
work is expected to start in mid-June once the excavation and sample
extraction from the micro pit has been completed.

The state-of-the-art plant will utilize three Knelson concentrators of
different diameters to produce a high-grade gold concentrate. The final
concentrate will be separated using a Gemini 20 table. The plant will
process 12 tonnes per hour and will operate 24 hours per day during the
processing stage. The extraction, crushing and processing of the entire
10,000 tonne bulk sample is anticipated to be completed by late
September 2007.

The 10,000 tonne bulk sample will consist of forty 250 tonne blocks of
varying gold grades, which will each be processed independently in
order to compare surface and drill samples with the gold values
obtained from the larger blocks. The primary purpose for extracting and
processing the bulk sample in this manner is to assist Prize Mining in
mitigating gold assay variabilities associated with the "nugget effect"
of the coarse gold mineralization found in the Yellowjacket Zone. This
program will lead to a better understanding of the gold distribution
and grades throughout the zone and will assist in future development
planning and assist in the calculation of a NI43-101 compliant resource
estimate.

Metallurgical tests indicate that the Knelson processing plant will be
able to gravity separate approximately 70% of the gold. An extensive
head grade and tail sampling program will be ongoing throughout the
processing period, allowing calculation of the actual recoveries and
true gold grades of the sample blocks. Protocols for the head and tails
sampling programme have been devised by Dr. Simon Dominy of Snowden
using Gy Sampling Theory. The proposed protocols have been optimized to
ensure minimum sampling errors. The tailings will be retained for
future gold extraction if economics designate.

"The decision by Prize Mining to acquire the Knelson Gravity Processing
Plant, rather than lease, is an indication of management's commitment,"
stated Feisal Somji, Chairman of Prize Mining. "We feel strongly that
the Atlin Gold Property can transition from this trial mining stage
into a profitable mining operation and that the ability to amortize our
capex costs on the eventual mining operation within this first phase
will give the company is a big cost advantage in moving towards our
goal of becoming a mid-sized gold producer in the near future."

Ms. Linda Dandy, P.Geo.is the project supervisor and is the "Qualified
Person" for the purposes of National Instrument 43-101 and has reviewed
and verified the geological contents of this release.

About Prize Mining
Prize Mining Corporation (TSXV: PRZ) is a company dedicated to the
exploration, discovery and development of precious metal deposits. 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.

Initial drilling will focus on the Pyrrhotite Lake and Valley Lake
areas, where coincident Ni-Cu-PGM soil targets were identified by a
large-scale soil geochemical survey completed by Silvermet in 2006. A
number of other geochemical targets are currently being interpreted
that will likely also be drilled during the 2007 season.

Drilling is scheduled to commence in mid-May 2007, with a planned
8,000- to 10,000-metre program to be completed prior to October of
2007.
The mineral claims optioned under the joint venture cover an area of
approximately 200 square kilometres along a 60-kilometre strike length
of the southern portion of the Muskox intrusion, which is one of the
world's largest layered ultramafic complexes. The marginal zones and
feeder dike contain semi-massive and massive sulphide mineralization
strikingly similar to that found in the Norilsk mining district in
Russia, whereas the Muskox layered sequence contains stratiform PGM
mineralization similar to that of the Merensky Reef and UG2 chromitite
horizons in the Bushveld complex in South Africa. The Silvermet
optioned land claims were assembled by Prize Mining Corp. between 1994
and 2001. The claims are centred approximately 90 kilometres south of
the village of Kugluktuk (Coppermine), Nunavut.

Silvermet's agreement with Prize Mining permits it to earn a 70-percent
interest in the claims by incurring not less than $10-million
expenditure by Dec. 7, 2010, of which $4-million must be spent by June
30, 2008. To date, Silvermet has spent approximately $1.1-million on
Muskox and has in hand sufficient flow-through financing to initiate
its proposed drill program this April.

Pyrrhotite Lake area
Previous drilling in the Pyrrhotite Lake area outlined a small lens of
massive sulphides with an average grade of 1.2 percent nickel and 2.6
percent copper along the east side of the marginal zone of the
intrusion. Two recent Prize Mining drill holes intersected 4.7 percent
nickel, 10.6 percent copper, 2.2 grams per tonne platinum and 11.1
grams per tonne palladium over 5.4 metres, and 3.22 per cent nickel,
7.52 percent copper, 2.2 grams per tonne platinum and 17.5 grams per
tonne palladium over 5.5 metres. No National Instrument 43-101 resource
estimates have been completed.

This sulphide lens is located on the south end of a large Ni-Cu-PGM
soil geochemical anomaly that covers an area of 5.7 square kilometres
along a 4.8-kilometre strike length, parallel to the east margin of the
Muskox intrusive. Silvermet intends to complete 10 to 15 drill holes to
provide an initial evaluation of this trend during the 2007 program.

Valley Lake area
In the Valley Lake area there is a large Ni-Cu-PGM soil geochemical
anomaly that covers an area of 8.5 square kilometres along a
4.5-kilometre strike length of the intrusion. The highest anomalous
values are near the east and west margins of the intrusion; however,
the anomalies extend from each margin down-dip toward the centre or
keel area of the intrusion, outlining a target trend that is continuous
across the full width of the intrusion along a strike length of 4.5
kilometres. Silvermet intends to complete 10 to 15 drill holes to
provide an initial evaluation of this trend during the 2007 program.

About Prize Mining
Prize Mining Corporation (TSXV: PRZ) is a company dedicated to the
exploration, discovery and development of precious metal deposits. 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.

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 Tue Apr 3, 2007 at 11:15:50 AM Pacific Time
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