BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF - - PowerPoint PPT Presentation

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BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF - - PowerPoint PPT Presentation

HIGH GRADE COPPER IN MEXICO AND GOLD IN BRITISH COLUMBIA CORPORATE PRESENTATION TSXV: PRZ OTCQB: PRZFF November 2018 FSE: MQSP Cautionary Statement FORWARD LOOKING STATEMENTS This presentation contains forward-looking information and


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CORPORATE PRESENTATION

November 2018

TSXV: PRZ OTCQB: PRZFF FSE: MQSP

HIGH GRADE COPPER IN MEXICO AND GOLD IN BRITISH COLUMBIA

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Cautionary Statement

FORWARD LOOKING STATEMENTS This presentation contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws. These forward-looking statements may include statements regarding the successful completion of financings by the Corporation, the perceived merit of properties, exploration results and budgets, mineral resource estimates, the potential to increase estimated minerals resource work programs, capital expenditures,

  • perating costs, resource estimates and similar statements relating to the economic viability of a project, timelines, strategic plans, including the Corporation’s plans and expectations relating to the Manto Negro Copper properties

(collectively, “Manto Negro”), the Kena and Daylight Gold-Copper properties (collectively, “Kena”) and the Toughnut property in the Nelson area of British Columbia and market prices for precious metals, or other statements that are not statements of fact. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute “forward-looking statements” to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about: future prices of copper, gold and other metal prices, the success of proposed exploration and development activities, successful exploration and development of the Manto Negro, Kena and Toughnut properties, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, government regulationof the Corporation’s activities, environmental risks and expenses, labour stability, stability in market conditions, availability of sufficient equipment and labour, accuracy of any mineral resources and anticipated costs and expenditures and the Corporation’s ability to achieve the Corporation’s goals. While the Corporation consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and

  • ther factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements, including price volatility of the Corporation’s

securities, further potential of the Corporation’s properties, the need for additional capital and the Corporation’s ability to raise additional funds, land title issues and risks, local community issues, the estimation of mineral resources, conclusions of economic evaluations, the realization of mineral resource estimates, the timing and amount of estimated future production, quality and marketability of mineral product, limited lives of mines, reclamation obligations, the costs of production, capital expenditures, mining or processing issues, currency exchange rates, government regulation of mining operations, environmental risks, risk relating to infrastructure, permitting and licenses, litigation, mining tax regimes, insurance and uninsured risks, competition, adequacy of financial resources, no historical production or revenues therefrom, dependence on outside parties, dependence on key personnel, conflicts of interest and

  • ther risks of the mining industry and those factors disclosed under the heading “Risk Factors” in the Corporation’s documents filed from time to time with the securities regulators in the provinces of Canada. This list is not exhaustive
  • f the factors that may affect any of the forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and the Corporation’s actual achievements or other future events or

conditions may differ materially from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation. In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation 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 Corporation 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. Any financial outlook or future-oriented financial information as defined by applicable securities legislation has been approved by management of Prize Mining as of the date hereof. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Prize Mining. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Scientific And Technical Disclosure Robert Archer, P. Geol., 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 presentation. All technical and scientific information with respect to the Manto Negro Property contained in this presentation has been taken from the technical report (the “Manto Negro Technical Report”) entitled “Technical Report Manto Negro Property Coahuilla State, Mexico” dated March 26, 2018 with an effective date of March 14, 2018 prepared by Norwest Consultants Ltd. of Calgary, Alberta on behalf of Prize Mining or is based on supporting documentation provided by Norwest and has been reviewed and verified by Derek Loveday, P.Geol., or William A. Turner, P. Geol., each of Norwest and Qualified Persons. A copy of the Manto Negro Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com. All technical and scientific information with respect to the Kena Project contained in this presentation has been taken from the technical report (the “Kena Technical Report”) entitled “Technical Report for the Kena Project, Nelson, BC” dated June 2, 2017 with an effective date of January 7, 2017 prepared for Prize Mining Vivian Park, P.Geo., VPG Geosciences, and Gary H. Giroux, P.Eng., Giroux Consultants Limited (Ltd.) or is based on supporting documentation provided by either of Vivian Park or Gary H. Giroux and has been reviewed and verified by either such person, each Qualified Persons. A copy of the Kena Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com. This presentation discloses mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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Highlights

  • Manto Negro Copper Project
  • High grade district-scale copper project in Coahuila, Mexico
  • Sediment-hosted stratabound copper deposit, analogous to

world class Kupferschiefer deposits in Europe

  • Grades at surface from 1% to over 5%
  • 17,965 hectares of land, 100 % owned, no royalties, 30+ high

grade showings over a 50 kilometer trend

  • Kena Gold Silver Project
  • 481,000 oz of gold in NI43-101 Indicated Resources and

1,318,000 oz in Inferred Resources in SE British Columbia, Canada

  • The Company and the Team
  • Expert management and board with proven success of

creating shareholder value by building valuable mining companies around the world

  • Recently raised over CA$9 million, with diamond drill

programs underway in both Mexico and British Columbia

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Prize Mining Team

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Michael McPhie, B.Sc., M.Sc., QEP - President and CEO, Director Mining industry executive with over 20 years international experience developing projects from early exploration to full operations. Former Managing Director of JDS Copper, President and CEO of Curis Resources, Director and Executive Vice President Exeter Resources and currently Chair of the Board of IDM Mining Ltd. and Ridley Terminals Corporation. Feisal Somji, B.Sc., MBA - Executive Chairman Mining industry executive with over 20 years international experience. Founding shareholder of Mexican Silver Mines, an exploration company focused on Mexico and South America where he held position of President when it was merged with Rio Alto. Robert Archer, P.Geo. – Director, Technical Committee Chair Co-founder, director and former CEO of Great Panther Silver Limited, a silver-gold producer with operating mines in Mexico and another under development in Peru. Mr. Archer has more than 35 years experience in the mining industry with senior and junior companies, including more than 20 years in Mexico. David Schmidt, B.Asc. – Director Mining industry consultant with over 15 years experience in financings, corporate and financial disclosure and corporate development. Currently a director of several public companies. Raul Ramirez, BA – Director One of two principals of Scion Mines SA de CV, which was purchased as part of the Manto Negro acquisition. President and CEO of Molycomex, a private Mexican corporation involved in mining exploration in Mexico. Founding shareholder of Mexican Silver Mines and VP Operations prior to merger with Rio Alto. Yuyiang Liang, CPA, BBA – Chief Financial Officer Yuying Liang is a Senior Associate at BridgeMark Financial Corp., where she provides financial reporting services for both public and private companies. She has extensive experience in public company environments and full cycle accounting, as well as providing accounting services for business acquisitions and RTO. Ms. Liang holds the professional designation of Chartered Professional Accountant (CPA). Richard Dufresne, B.Sc., P.Geo – Geological Project Manager

  • 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 was 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.

Proven Track Record of Shareholder Value Creation Extensive Technical, Financial and Capital Markets Expertise Committed to Industry Leading CSR and Environmental Performance

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SLIDE 5

Prize Mining Capital Structure (as of October 31, 2018)

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Capitalization Share Price (C$) $0.09 Basic Shares Outstanding M 124 Options Outstanding M 4.8 Broker Warrants Outstanding M 40.7 RSUs Outstanding M 2.4 Basic Market Capitalization (C$) $11M

11% 24% 65% Insider Institutions/HNW Retail

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Manto Negro Copper Project Coahuila State, Mexico

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  • “Infrastructure development in major

countries such as China and India and the global trend towards cleaner energy will continue to support growth in copper demand.” International Copper Study Group, 2018

  • “We believe that copper consumption is

entering a new growth phase driven by an ‘electrifying society’.” DBS Bank, Singapore

  • “Copper consumption from electric

vehicles, estimated at 0.9% of the global total in 2017, will rise to 8.2% of 2017’s total copper demand in 2030.” DBS Bank, Singapore

Copper Market

10 15 20 25 2012 2014 2016 2022 2028 2030 2018 2020 Base Supply 2024 2026 Demand

Source: Wood Mackenzie Q3 2017. Rio Tinto. Includes Wood Mackenzie estimates of production from Oyu Tolgoi underground.

Deficit

Copper supply/demand

(million tonnes)

Surplus

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Manto Negro Copper Project

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  • Sediment-hosted stratabound copper deposit
  • Analogous to the Kupferschiefer deposits of Poland

& Germany and Zambian/DRC Copper Belt that are some of the richest globally

  • 100 percent ownership of approximately 17,965

hectares (180 km2) - first time this area has been consolidated in one district-scale package

  • District scale potential with 35 high grade Cu and Ag

surface showings and underground (artisanal) exposures over 50+ km trend

  • Mineralized thickness from 1.5m to 15m
  • Zones average 0.73% to 5.5% Cu, 19 to 793g/t Ag

with richer Cu-Ag mineralization outcropping at various locations

Rich copper mineralization from Ojitos showing - chalcocite (black) malachite (green)

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Sediment-Hosted Stratabound Copper Deposits

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  • Largest deposits of this type are in Central African Copper Belt but Manto Negro is more

analogous to Kupferschiefer deposits of Poland & Germany Kupferschiefer Deposits

  • “by far the most important primary European metal source” (Borg, et al, 2012) and one of the

largest deposits of this type in the world

  • Laterally extensive – mineralized trend is ~600 kilometers E-W, with individual deposits

typically 10’s of square kilometres

  • Consistent grades & thicknesses
  • Above features lead to larger operations with economies of scale & significant output
  • KGHM is largest producer in Poland, operating 3 mines, concentrators & smelters
  • Underground mines, room & pillar method, up to 1,500m deep, 1-15m thick
  • Processing ~32 million tonnes per annum
  • 2015 resources of 1.7 billion tonnes at 1.84% Cu & 52.5g/t Ag

➔ 31.9 million tonnes Cu & 2.9 billion ounces Ag

  • KGHM has mining & exploration rights to >450 km2
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Manto Negro Project – Location & Infrastructure

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  • Coahuila State, NE Mexico
  • Safe, easy road access
  • Located proximal to mid-size cities with access to

skilled mining labour

  • Excellent working relationship and agreements in place

with two local ejidos

  • Major highway and rail proximal to property
  • High voltage power nearby
  • Water available on site for future development &

production

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Manto Negro - Geology

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  • The Manto Negro area lies within the Mexican Fold & Thrust Belt

and is underlain by a NW trending anticlinal structure dominated by lower Cretaceous clastic and carbonate rocks with a few scattered exposures of Permian and Tertiary intrusive rocks.

  • Copper-silver mineralization is associated with the contact of the

sandstone (red-beds) of the San Marcos formation and the overlying limestone of the Cupido formation. Carbonaceous sediments frequently lie at the contact and all three rock types can be

  • mineralized. The geological setting fits well with a sediment-hosted

stratabound copper-silver deposit model.

  • Within the Manto Negro Project, significant exploration potential is

indicated by small, historic mines and prospects along the contact of the San Marcos – Cupido formations for 40 to 50 kilometers.

  • Typical thicknesses of mineralized horizons are in the 1-10 meter

range, although mineralization has locally been found over 15+ meter intervals.

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Currently Drilling at El Granizo and Pilar Grande Deposits

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  • Testing two areas 18 kilometers

apart but on same mineralized horizon, underscoring the district- scale potential

  • 3,000 meters in 30 holes planned
  • Drilling is testing continuity and

style of mineralization

  • Some core could potentially be

used for preliminary metallurgical testing

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El Granizo Historic Mine

  • Underground channel sampling:
  • Weighted average of 2.62% Cu and

50g/t Ag over 1.7 meters thickness

  • ver 45 X 50 meter area
  • Surface channel sampling:
  • 2.73% Cu and 58g/t Ag over 6.0m
  • 1.78% Cu and 40g/t Ag over 5.2m
  • 1.65% Cu and 36g/t Ag over 7.0m
  • Current drill program will test a 550m X

100m area with 1,500m in 15 holes

Hole number Thickness (m) Cu% Ag g/t DDHMN-18-01 4.40 1.02 28 DDHMN-18-02 3.55 1.69 28

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Pilar Grande Historic Mine

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  • Pilar Grande Mine workings cover

240 meters on 4 levels and 80 meters down dip

  • Underground channel sampling

returned weighted average of 2.35% Cu and 184g/t Ag over 2.35m thickness

  • Current drill program will test a 200m

X 50m area with 1,500m in 15 holes

Hole number Thickness (m) Cu% Ag g/t DDHDI-18-01 4.10 0.88 49 DDHDI-18-02 3.40 1.58 122

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Pilar Grande / Don Indio Area

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Multiple historic mines and prospects over 5km

  • El Rincon:
  • 2.13% Cu and 63g/t Ag over 3.41 meters
  • La Cuchilla Mine:
  • 0.99% Cu and 38g/t Ag over 4.20 meters
  • 11.40% Cu, 622g/t Ag; 3.01% Cu, 436g/t Ag; and 2.80%

Cu, 280g/t Ag in grab samples from old dumps

  • El Tajo Prospect:
  • 1.26% Cu and 90g/t Ag over 2.50 meters
  • El Nopal Prospect:
  • 1.10% Cu and 33g/t Ag over 5.90 meters
  • El Palmito Prospect:
  • 0.81% Cu and 27g/t Ag over 3.65 meters
  • Las Palmas Prospect:
  • 0.81% Cu and 78g/t Ag over 1.80 meters
  • San Marcos Prospect:
  • Up to 2.11% Cu and 128g/t Ag in old dumps
  • La Abandonada Prospect:
  • 1.5% Cu and 47g/t Ag
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Madero Concession Block

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  • More than 9 kilometer strike length
  • 10 new copper prospects
  • 3 major target zones
  • Los Ojitos: 45.5% Cu and >1,500g/t Ag
  • ver 0.25 meters
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Copper Recoveries - Oxide

2012 metallurgical recovery tests on

  • xide material indicated:

➢ 93% Cu recoveries ➢ low acid consumption Metallurgical program being initiated by Prize as part of 2018/2019 field work

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Program Currently Underway

  • Phase 1 drillinng: 3,000 meter, 30-hole

diamond drill program at El Granizo and Pilar Grande Mines

  • Data compilation, structural and stratigraphic

mapping and geological model development

  • Metallurgical program to confirm and further

define copper and silver processing options and recoveries

  • Mining engineering assessment of key

showings

  • Ongoing community engagement
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Kena Gold-Silver Project Kootenay-Boundary Region, British Columbia

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  • Prize Mining’s advanced stage Kena Project hosts a NI43-101 gold resource of 481,000
  • unces Indicated and 1,318,000 ounces Inferred
  • Historic mining district with Prize claims hosting four past producing mines with grades

as high as 37g/t gold

  • Prize consolidated land package of Kena, Toughnut and Daylight Properties for first time
  • Recently completed 2,700 meter exploration diamond drilling program with assays

pending.

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Location and Infrastructure

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  • Kootenay Boundary Region of

southeastern BC

  • Easy access by road and rail
  • Power lines cross the property
  • Local service and supply companies
  • Historic mining district with Teck

Resources Trail Smelter nearby

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Kena Project

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THREE IMPORTANT GOLD AND COPPER- GOLD ZONES

  • 1. Kena Property
  • KGM Gold Deposit - Bulk tonnage gold

deposit with high grade zones

  • Copper King Zone - Bulk tonnage

porphyry copper-gold mineralization

  • 2. Toughnut Property
  • Gold Eagle trend with grades up to 25g/t

gold

  • 3. Daylight Property
  • High Grade Gold Veins characterized by

four historic mines

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Kena Property

PORPHYRY GOLD DEPOSIT

  • 24,890,000 tonnes INDICATED Resources
  • Average grade 0.60g/t Au (Using a 0.3g/t

Au cut-off)

  • Containing 481,000 ounces GOLD
  • 85,790,000 tonnes INFERRED Resources
  • Average grade 0.48g/t Au (Using a 0.3g/t

Au cut-off)

  • Containing 1,318,000 ounces GOLD

* Mineral resources that are not mineral reserves do not have demonstrated economic viability ** NI 43-101 Mineral Resource Estimate by Giroux and Park (2017) available on Prize Mining website and on SEDAR

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Toughnut Property

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PREVIOUS DRILLING HIGHLIGHTS

  • Gold Eagle Mineralized Trend: 38

significant results with >1.0g/t Au

  • Gold Eagle Trend North: 5.45m of

2.95g/t Au

  • Gold Eagle Trend South, Open

Mineralized Trend: 1m of 25g/t Au, 2m

  • f 5.58g/t Au
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Daylight Property

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TWO LARGE PROSPECTIVE GEOCHEMICAL TRENDS

  • Great Western anomaly: 48 soil samples over

1g/t Au

  • The Starlight-Daylight trend: 9 soil samples

>1g/t Au AND highest gold-in-soil ever recorded on the property of 8.0g/t Au PREVIOUS DRILLING HIGHLIGHTS

  • Great Western anomaly: 32.6m of 1.16g/t Au

including 0.9m of 63.7g/t Au AND 71.22m

  • f 1.09g/t Au
  • Starlight-Daylight trend: 5m intercept of

2.76g/t Au including 1m of 5.77g/t Au

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Near Term Catalysts

Activity Timeline ✓ Phase 1 and 2 Drilling at Kena Gold-Silver Project - assay results November/December 2018 ✓ Preliminary assay results from Manto Negro November 2018 ✓ Complete regional assessment November 2018 ✓ Complete Phase 1 Drilling Program at Manto Negro Q1 2019 ✓ Initiate Phase 2 Drill Program at Manto Negro Q1 2019 ✓ Initiate Phase 3 Drilling at Kena Q1 2019

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Invest in Prize because…..

Attractive high value opportunities in two great jurisdictions Opportunity to take advantage of the electrification metal prospects of the copper market in addition to the highly prospective gold and silver markets within one company Board and management team with proven track record of creating shareholder value in both the near and longer term Committed to highest level of social and environmental performance Compelling value proposition with future share price appreciation driven by discovery, resource expansion and project advancement

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www.prizemining.com

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OTCQB PRZFF TSX.V PRZ FSE MQSP

Investor Relations

Walter Spagnuolo, Manager, Investor Relations walter@prizemining.com Tel: 604-343-8661

Mailing Address

Prize Mining Corporation 645 – 7th Avenue SW, Unit 2650 Calgary, Alberta T2P 4G8 Tel: 403-236-2222