Prizes included AK-47 assault rifles, hand grenades and an anti-tank mine.
The quiz ran during the holy Muslim month of Ramadan in the port city of Kismayo, and included questions about the Koran and Somali geography.
A representative for the al-Shabab militant group said the quiz aimed to stop young men from wasting their time and focus on defending their territory.
"The reason the young men were rewarded with weapons is to encourage them to participate in the ongoing holy war against the enemies of Allah in Somalia," AFP news agency quoted al-Shabab's Sheikh Abdullahi Alhaq as saying at Friday's prize-giving ceremony.
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