Mr. Feisal Somji reports

PRIZE MINING ANNOUNCES FILING OF TECHNICAL REPORT ON THE KENA PROJECT

Prize Mining Corp.'s technical report entitled "Technical Report for the Kena Project, Nelson, B.C.," and dated Jan. 16, 2017, with an effective date of Jan. 7, 2017, prepared for Prize by Vivian Park, PGeo, of VPG Geosciences, has been filed and is now available on Prize's SEDAR profile.

1994854 Alberta Ltd. acquisition

Prize entered into a preacquisition agreement with 1994854 Alberta, pursuant to which Prize has agreed to make an offer to acquire all of the outstanding shares of 1994854 Alberta on a 1:1 share-exchange basis. 1994854 Alberta entered into an option agreement with Apex Resources Inc., pursuant to which 1994854 Alberta has an option to earn an 80-per-cent interest in Apex's Kena and Daylight gold-copper properties (referred to above as the Kena project) located in the Nelson area of British Columbia, Canada, by making annual cash and share payments, and completing $3-million in Kena project-related exploration expenditures over four years. 1994854 Alberta does not have any interests in any other mining assets. Refer to Prize's news releases dated Dec. 29, 2016, and Feb. 13, 2017, for additional information regarding 1994854 Alberta, the option, the Kena project and the 1994854 Alberta acquisition.

Kena project

The Kena project covers approximately 8,000 hectares of mineral claims and has been assigned estimated resources of measured plus indicated of 25.28 million tonnes at 0.6 gram per tonne gold (490,000 ounces Au) and inferred of 90.44 million tonnes at 0.48 gram per tonne Au (1,399,000 ounces Au). The Kena project comprises the Kena Gold, Gold Mountain and Copper King showings, together with the historic Euphrates and Gold Cup gold mines. The adjacent Daylight property comprises the historic Daylight, Starlight, Victoria and Great Eastern gold mines. The Gold Mountain and Kena Gold zones have been partially tested with 24,000 metres of drilling in 158 diamond drill holes.

Following the completion of the 1994854 Alberta acquisition, Prize intends to advance the Kena project toward exploitation, while considering the option to extract smaller tonnages of higher-grade material. Prize also expects to delineate additional resources. Prize's approach is to evaluate all the information for the Kena project and then move toward exploitation in a staged, thoughtful manner. The following work is recommended in the report. The total cost of the recommended work is estimated to be $150,000:

1. Compilation and additional verification of historical data;
2. Preliminary cut-off grade and optimization parameters for a small high-grade operation, if appropriate;
3. Create a mineral resource model focused on higher-grade material, suitable for supporting an underground mining scoping study;
4. Plan a drilling program to improve the mineral resource estimate as needed, provide metallurgical samples, and deliver geotechnical and hydrogeological information, as appropriate;
5. Conduct a scoping study to determine the approximate economics of the project, with particular emphasis on a small-tonnage, high-grade approach;
6. Build a conceptual mine plan;
7. Provide a high-level site layout;
8. Provide scoping-level opex and capex estimates for a low-capex, quick-to-payback solution;
9. Utilize a simple but adaptable economic model to determine economic results (internal rate of return, net present value and payback period) and economic sensitivities;
10. Identify challenges and opportunities;
11. Provide recommendations.

Positive results from this recommended work are anticipated to result in one or more further work programs, which would likely include drilling, over the Kena project.

The financing

Prize will complete a private placement of securities for proceeds of $3.5-million concurrently with the completion of the 1994854 Alberta acquisition. Details of the financing are provided in Prize's news release of Feb. 13, 2017. The proceeds of the financing will be used to finance the $150,000 work program on the Kena project set out above, to pursue asset acquisitions and for general corporate purposes. See above for additional information regarding the initial work program to be conducted on the Kena project.

About Prize Mining Corp.

Prize is a junior mining issuer engaged in the acquisition, exploration and development of mining properties.

William Dynes, BSc (honours), PGeo, a consulting geologist, is a qualified person as defined by National Instrument 43-101, standards of disclosure for mineral projects, and has reviewed and approved the scientific and technical information in this news release.

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