PRIZE MINING APPOINTS NEW EXPLORATION MANAGER AND PROVIDES AN UPDATE ON THE KENA/TOUGHNUT GOLD-SILVER AND MANTO NEGRO COPPER DRILL PROGRAMS

Calgary, Alberta (October 16, 2018) – PRIZE MINING CORPORATION (“Prize” or the “Company”) (TSXV:PRZ) (OTCQB:PRZFF) (MQSP:GR:FRANKFURT) is pleased to announce that the Company has hired Mr. Richard Dufresne, P.Geo. as Exploration Manager for the Company’s projects in British Columbia and Mexico.  The Company is also providing an update on the company’s current diamond drilling campaigns underway at both projects.

We are grateful to have attracted such top tier talent to Prize with Richard joining our management team”, said Michael McPhie, President and CEO of Prize Mining.  “We have two significant drilling programs underway in BC and Mexico and the coming weeks will help to demonstrate the potential of our properties for high grade copper, gold and silver.”

Richard Dufresne, B.Sc., P.Geo.

Mr. Dufresne is a professional geologist with over 30 years of global experience successfully developing and leading mineral exploration programs.  He spent half of his career working with major mining companies, Falconbridge Ltd. and Anglo American Exploration Canada, where he held senior and managerial positions.  Later he joined junior mining companies as project manager and vice president of exploration.  He has been involved in projects in Canada, Mexico, Peru, and Ivory Coast.  Mr. Dufresne is a Geology graduate from University of Montreal and is a registered member of Engineers and Geoscientists BC.

Update on Exploration Programs Underway

  • Manto Negro Copper Project, Coahuila State, Mexico

At Manto Negro, diamond drilling is focused on the deposit areas known as El Granizo and Pilar Grande.  While these showings lie on the same stratigraphic horizon, they are 18 kilometres apart and are only two of thirty-five known high-grade copper showings that exist on the extensive property.

Phase I drilling program began on both areas in the third week of September.  Heavy rains impeded the start-up of the program but recent progress has improved and is advancing as planned at both sites now.  Core is being logged and sampled and sent out for assay, with first results expected in November.

As was reported previously (see Prize press release on September 20, 2018), the Phase I drill program will consist of approximately 3,000 metres in 30 holes, divided equally between the two areas.  This first drill program is designed to provide a good understanding of the style, grade and continuity of the copper mineralization and lay the foundation for follow-up drilling to define a resource.

  • Kena-Toughnut Gold Silver Project

Diamond drilling at the Toughnut Gold-Silver properties in southeastern British Columbia is well underway in its second phase of this season and is going well.  Phase II will focus on testing two target areas: (1) The Gold Eagle Showing – best historical intercepts include a 2010 hole, VTN10-008, which returned 4.02g/t Au over 24.3m (including 14.47g/t Au over 4.0m).  Strike extension drilling by Prize in 2017 returned intercepts of 2.95g/t Au over 5.5m (hole TN17006) and 1.0g/t Au over 17.7m (TN17009).  Intercepts to date indicate over 750m of mineralized strike length that is open to the northwest, southeast and down-dip; and (2) The Toughnut Crown Grant workings — this trend of historical pits, adits and shafts exposes a high-grade polymetallic quartz vein system that has never been drill tested.  Grab samples by Pacific Sentinel in 1989 returned up to 32.8g/t Au, 212.5g/t Ag, 2.6% Pb, and 5.9% Zn from quartz veins in volcanic host rocks.

Our start-up for Phase II was delayed slightly due to forestry activity in the project area, however, this has since been resolved and drill crews are making good steady progress.  Core recovery has been excellent and the target zones have been intersected in all holes so far.

Robert Archer, P.Geo., a Director of the Company, is the Company’s nominated Qualified Person under NI 43-101 responsible for monitoring the supervision and quality control of the programs completed on the Manto Negro property.  Mr. Archer has approved and verified the scientific and technical information in this news release.

Jarrod Brown, P. Geo., a manager of TerraLogic Exploration Ltd., is the Company’s nominated Qualified Person under NI 43-101 responsible for monitoring the supervision and quality control of the exploration programs completed on the Kena, Daylight and Toughnut properties in British Columbia.  Mr. Brown has approved and verified the scientific and technical information in this news release.

About Prize Mining Corp.

Prize is a junior mining issuer listed on the TSX Venture Exchange.  Prize is focused on the exploration and development of the Manto Negro Copper Property in Mexico and the Kena Gold Property in BC.  Find out more at: www.prizemining.com

For more information please contact:

Michael McPhie                                                 Walter Spagnuolo
President and CEO                                           Manager, Investor Relations
Tel. 604-336-6066                                             Tel. 403-236-2222
mmcphie@prizemining.com                             walter@prizemining.com.

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Reader Advisory

Forward-Looking Statements. This news release contains forward-looking statements. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “scheduled”, “potential”, or other similar words, or statements that certain events or conditions “may”, “should” or “could” occur.

The forward-looking statements are based on certain key expectations and assumptions made by Prize, including the assay results of the 2017 and 2018 sampling programs on Prize’s Manto Negro Property and the 2017 and 2018 exploration programs on the Kena-Toughnut Property.  Although Prize believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prize can give no assurance that they will prove to be correct.  There is no assurance that the result of these exploration programs will be successful.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, exploration risks and that required regulatory and third-party approvals and consents are not obtained on terms satisfactory to the parties within the timelines provided.

The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof.  The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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.