Prairie Mining Ltd. — Capital/Financing Update 2007

Oct 18, 2007

ASX RELEASE

19 OCTOBER 2007

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Corporate Advisor Appointed

Prairie Downs Metals Ltd has appointed Capital Investment Partners Ltd (“CIP”) as a corporate advisor to assist with the negotiation and structuring of future financing requirements in relation to the ongoing evaluation and development of the Prairie Downs Zinc Project.

Prairie Downs Metals has recently announced that it has commenced a Bankable Feasibility Study for the Prairie Downs Zinc Project, including commissioning Abesque Engineering & Construction Limited to design a 300,000 tonnes per annum processing plant with the capability to expand to 1,000,000 tonnes per annum.

CIP provides corporate advisory services to Australian based companies across three overlapping disciplines, corporate finance, private equity and management consulting.

CIP has been engaged on a non-exclusive basis for a period of 12 months. The fee includes the issue of 1 million options exercisable at $1.25 before 31 December 2008 and 1 million options exercisable at $1.50 before 31 December 2008. The issue of these options is subject to shareholder approval which will be sought at a general meeting of the Company to be held at the earliest practicable opportunity.

Mark Hansen Managing Director

For further information contact: Elissa Samuel Investor Relations Manager esamuel@prairiedownsmetals.com.au

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