Prize Mining: Yellowjacket Mine Achieves Full Commercial Production, New Gold Zone Discovered

CALGARY, ALBERTA, Aug 27 (MARKET WIRE) --
Prize Mining Corp. (TSX VETNURE: PRZ), along with its Joint Venture
Partner Eagle Plains Resources Ltd. (TSX VENTURE: EPL) announces
completion of final commissioning and permit compliance requirements to
allow for commencement of full production at the Yellowjacket Gold Mine,
located in northwestern British Columbia. On July 10, 2009, the
Yellowjacket Gold Mine received its BC Mines Act Permit for the
development and operation of an open pit gold mine and onsite
concentrator processing up to 75,000 tonnes per year of gold ore.

Work completed since receiving permit approvals includes construction of
a newly designed tailings storage facility and pipeline, emplacement of
environmental monitoring wells, mine pit dewatering, ramp construction,
mill commissioning and electrical upgrades.

The 2009 mining plan includes extraction of a minimum of 32,000 tonnes of
gold ore from the existing open pit. Pit excavation is anticipated to be
completed in about 5 weeks, and milling at a throughput rate of 350 tons
per day expected to continue until mid to late October.

New Gold Zone Discovered During Ramp Excavation

During ramp excavation completed earlier this month, a previously
undetected six meter-wide gold-mineralized zone was discovered centered
around a one metre-wide, visible-gold-bearing silicified breccia.
Sampling and excavation of this new zone is currently underway and will
provide additional mineralized material for this season's milling
operations.

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

A detailed history of the project and recently updated photo-gallery may
be found on the Eagle Plains website.

Updated Ownership Details of Yellowjacket Joint Venture

Due to unexpected lower grades of stockpiled material from 2008 bulk
sample work, equipment problems and unforeseen circumstances that
resulted from permitting of the Project, additional funding was required
to keep the project moving forward and to maintain, as much as possible,
a production schedule that was originally envisioned by the JV partners.
An emergency interim cash-call of $1,400,000 was made in July by Eagle
Plains as operator, and the decision was made by both participants to
waive normal cash-call procedures. Prize Mining subsequently agreed to
accept dilution of its interest in the project in accordance with a
formula established in the Yellowjacket JV agreement. The current JV
ownership ratio resulting from this dilution will be announced as final
figures are established.

About Prize Mining

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

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

Feisal Somji, Director

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.

Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.

Contacts:
Prize Mining Corporation
Jamie Mathers
Investor Relations
604-684-4743 ext 236 or Toll Free: 1-866-684-4743 ext. 236
info@prizemining.com
www.prizemining.com

Copyright 2009, Market Wire, All rights reserved.

-0-