Prize to Modify Processing Plant for Small Scale Mining Operation; Yellowjacket Zone, Atlin Gold Property, BC

CALGARY, ALBERTA--(Marketwire - Sept. 26, 2008) - Prize Mining Corporation ("Prize") (TSX VENTURE: PRZ.V) is pleased to announce that processing of the 10,000 tonne gold-rich bulk sample from the Yellowjacket Zone of its Atlin Gold Property, BC., is progressing very successfully. After the announcement last week that Prize will be initiating application for a Small Mine Permit, a review of process plant modifications for a mining operation, rather than a bulk sampling operation, is currently underway. Processing of sample blocks with the existing set up will continue until freeze-up, probably mid October. At that time, required renovations to the processing plant will be determined, including purchasing of an enclosure to allow year-round operations.

Systematic processing of the 10,000 tonne bulk sample is continuing, with a rigorous head, tail and concentrate sampling program in place. Results from the bulk sampling program will allow Dr. Simon Dominy, C.Eng., C.Geol., Principal Geological Engineer and General Manager of Snowden Mining Industry Consultants Ltd. (UK) to begin work on a 43-101 compliant resource estimate on the Yellowjacket Zone. While the remainder of the 10,000 tonnes is being processed and the resource estimate completed, Prize will continue with its operations by applying to mine and process an additional 40,000 tonnes under a Small Mine Permit. If results are successful, once the 40,000 tonnes is mined and processed and the resource estimate is completed, an aggressive "move-forward" plan will be implemented.

Currently, the 17th bulk sample block (blocks average just under 250 tonnes each) is being processed, and the 19th block being screened and crushed in preparation for processing. During the past week two sample blocks (C21 and B33) from the central portion of the extraction pit were processed. Along with these blocks, A22 and A34, also from the central area of the pit, have been screened and crushed in preparation for processing.

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. Intermediate concentrate from four of the sample blocks was re-table and smelted on site this week, producing a 100 ounce gold bar. The prior 220 ounce gold bar was smelted from the higher grade concentrate from two of these re-tabled blocks. Over the next week, the remaining 13 blocks will be re-tabled to produce an on-site smeltable high grade gold concentrate. The lower grade gold concentrate, which contains a significant quantity of gold, is being 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.

Contacts

Jamie Mathers
Ascenta Capital Partners Inc.
Investor Relations
(604) 684-4743 ext. 236 or Toll Free: 1-866-684-4743
Email: info@prizemining.com
Website: www.prizemining.com