Mr. Daniel Kunz reports

DRILLING INTERCEPTS 35 METRES OF 4.9 GPT GOLD EXTENDING LOS REYES Z-T STRUCTURE 450 METRES

Prime Mining Corp. has released new drill results that continue to expand known mineralized structures at its wholly owned Los Reyes gold-silver project in Sinaloa state, Mexico.

Results reported today are from 17 new core holes from the company's exploration program targeting the northern extension of the Zapote-Tahonitas structure (Z-T structure). Seven of the 17 core holes are near the historical underground Mariposa mine and the other 10 new core holes are from Zapote North in a previously untested mineralized gap between Zapote North and Mariposa. These holes confirm that gold-silver mineralization extends from Zapote North to Mariposa, increasing the total length of the gold-silver mineralized Z-T structure by 450 metres to approximately three kilometres.

Holes reported today are from phase 1 drilling through Oct. 30, 2021, and phase 2 drilling that began Nov. 1, 2021. Approximately 15,000 m of the planned 50,000 m phase 2 drill program are targeting the Mariposa, Zapote North, Zapote South and Tahonitas gold-silver mineral deposits that make up the Z-T structure. There are currently three drill rigs working on the west side of the property at the Z-T structure and five rigs working on the east side of the property at the Guadalupe and El Orito structures. The company continues to work with the assay laboratory to resolve, and where possible accelerate, the previously reported current backlog of drill hole samples requiring assaying. The assay turnaround time is now six to eight weeks, including completion of quality assurance/quality control procedures. Despite the assay delays, the efficient ramp-up of drilling and mobilization of a reverse circulation drill rig have kept phase 2 progress on target with 21,530 m, comprising 69 holes, already drilled, including approximately 5,440 m in November, 4,550 m in December and 6,850 m in January.

Highlight drill intercepts

Mariposa stepout drilling:

• 4.89 grams per tonne gold and 22.2 gpt silver over 35.3 m (34.7 m estimated true width (etw), including 23.13 g/t Au and 61.4 g/t Ag over 2.9 m (2.9 m etw) and 41.50 g/t Au and 40.4 g/t Ag over 1.5 m (1.5 m etw) plus 1.08 gpt Au and 18.4 gpt Ag over 2.4 m (2.3 m etw) (21MA-06);
• 1.34 gpt Au and 24.5 gpt Ag over 16.7 m (12.8 m etw), including 3.22 g/t Au and 36.2 g/t Ag over 2.5 m (1.9 m etw) and 1.27 g/t Au and 5.8 g/t Ag over 1.4 m (one m etw) (21MA-01);
• 3.06 gpt Au and 30.2 gpt Ag over 1.5 m (1.5 m etw) (21MA-03).

Zapote North stepout drilling:

• 1.29 gpt Au and 25.7 gpt Ag over 10.5 m (7.4 m etw), including 4.93 gpt Au and 42.3 gpt Ag over 0.8 m (0.5 m etw) and 2.74 gpt Au and 40.5 gpt Ag over 1.9 m (1.3 m etw) (21ZAP-28);
• 1.00 gpt Au and 5.6 gpt Ag over 12.0 m (10.4 m etw) (21ZAP-39).

Daniel Kunz, Prime's chief executive officer, commented: "Connecting Mariposa to Zapote North is an important development for the evolving Z-T structure. Drilling on the Z-T structure continues to target Zapote North to further evaluate the new Mariposa extension and Zapote South and Tahonitas to better define and expand the higher-grade, potentially open-pit minable material identified to date. Drilling is also focused on exploring the down-dip, potentially underground minable extensions that are below the current depths of known boiling zone mineralization. To date for phase 1 and 2 combined, Prime already drilled 191 holes totalling 47,200 metres."

Z-T structure and Mariposa

The Mariposa mine is situated within the continuation of the Z-T structure. The historical workings occur on three levels with the small-scale mine centred on a 35-degree change in strike of the structure from approximately 300 degrees in the southeast to 265 degrees in the northwest. This strike change is similar to the flexure in the Zapote South deposit and is probably responsible for, or related to, the development of a dilation zone with localization of higher-grade mineralization.

Stockwork structures with greenish-coloured quartz have been observed at Mariposa. In the historical underground mine, the mineralized structure is exposed in a 135 m long, three m wide adit with several drifts and crosscuts. Historical reports indicate that there are several other adits along the structure. The Z-T structure consists of quartz veins, stringer zones and quartz breccias that range from five to over 35 m wide with the structure averaging between 15 and 20 m wide over its recently expanded three km length.

QA/QC protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetres), reducing to NQ or BQ size ranges (47.6 mm and 36.5 mm respectively) when required. Drill core samples are generally 1.50 m long along the core axis with allowance for shorter or longer intervals if required to suit geological constraints. Each entire hole is split, and one-half is submitted for assay. Sample QA/QC measures of unmarked certified reference materials, blanks and field duplicates as well as preparation duplicates are inserted into the sample sequence and make up approximately 8 per cent of the samples submitted to the lab for each drill hole.

Samples are picked up from the project by the laboratory personnel and transported to their facilities in Durango or Hermosillo, Mexico, for sample preparation. Sample analysis is carried out by Bureau Veritas and ALS Labs, with fire assay, including overlimits fire assay reanalysis, completed at its respective Hermosillo, Mexico, laboratories and multielement analysis in North Vancouver, B.C., Canada. Drill core sample preparation includes fine crushing of the sample to at least 70 per cent passing less than two mm, sample splitting using a riffle splitter and pulverizing a 250-gram split to at least 85 per cent passing 75 microns.

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g sample (code FA430 or Au-AA23). Multielement chemistry is analyzed by four-acid digestion of a 0.25-gram sample split (code MA300 or ME-ICP61) with detection by inductively coupled plasma emission spectrometer for a full suite of elements.

Gold assay techniques FA430 and Au-AA23 have an upper detection limit of 10 parts per million. Any sample that produces an overlimit gold value via the initial assay technique is sent for gravimetric finish via method FA-530 or Au-GRA21. Silver analyses by MA300 and ME-ICP61 have an upper limit of 200 ppm and 100 ppm, respectively. Samples with overlimit silver values are reanalyzed by fire assay with gravimetric finish FA530 or Au-GRA21.

Both Bureau Veritas and ALS Labs are ISO/IEC-accredited assay laboratories. Drill core assay results range from below detection to 93.80 gpt gold and 4,955.0 gpt silver. Composite intervals use a cut-off grade of 0.20 gpt gold.

Qualified person

Scott Smith, PGeo, executive vice-president of exploration, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical content in this news release.

Los Reyes gold and silver project

Los Reyes is a rapidly evolving high-grade, low sulphidation epithermal gold-silver project located in Sinaloa, Mexico, within the prolific Sierra Madre mining region. Historic operating results indicate that an estimated one million ounces of gold and 60 million ounces of silver were recovered from five separate operations at Los Reyes between 1770 and 1990. Prior to Prime's acquisition, recent operators of Los Reyes had spent approximately $20-million (U.S.) on exploration, engineering and prefeasibility studies. The project remains underexplored as only 40 per cent of the known structures have been systematically drilled, leaving 10 kilometres of untested strike length. Los Reyes holds potential for additional discovery and resource expansion.

Prime Mining acquired Los Reyes is 2019, completed initial data compilation that included 51,000 metres of historical drilling, field mapping and trenching in 2020, and in 2021, executed a phase 1 exploration program that included 25,650 metres of drilling. Results suggest the eight known deposits are much larger than previously reported and potential exists for new discoveries outside of current defined resource areas. The company is currently undertaking a 50,000-metre phase 2 exploration program.

About Prime Mining Corp.

Prime Mining (member of the TSX Venture 50) is an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators focused on unlocking the full potential of the high-grade Los Reyes gold-silver project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.

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