Mr. Daniel Kunz reports

PRIME REPORTS FIRST RESULTS FROM GUADALUPE WEST AND PROVIDES PROGRESS UPDATE AT GUADALUPE EAST

Prime Mining Corp. has released positive drill hole results from its first drill program at the Guadalupe West deposit and provided a progress report on drilling at its Guadalupe East deposit. Guadalupe East and West are two of the eight known gold-silver deposits at the company's wholly owned Los Reyes project in Sinaloa state, Mexico.

Twelve new drill holes from Guadalupe West (seven diamond drill core and five reverse circulation) are being reported today. This is the first drilling reported by Prime from the Guadalupe West deposit. Further drilling at Guadalupe West is planned to determine the extent of higher-grade mineralization as part of the company's continuing 50,000-metre phase 2 drill program because the deposit remains open along strike and to depth.

At Guadalupe East, phase 2 drilling has progressed well. Currently, 24 new core holes have been completed, with assay data starting to come in for the bulk of this drilling as the laboratories are overcoming previously reported delays.

Guadalupe West highlight drill intercepts:

• 1.68 grams per tonne gold and 25.8 grams per tonne silver over 22.9 metres (19.8-metre estimated true width) (21GW-12R);
• 1.60 grams per tonne gold and 50.4 grams per tonne silver over 10.5 m (8.6-metre estimated true width) and 1.92 grams per tonne gold and 34.3 grams per tonne silver over 21.6 metres (17.7-metre estimated true width) (21GW-07);
• 1.82 grams per tonne gold and 51.8 grams per tonne silver over 5.5 metres (4.8-metre estimated true width) and 0.53 gram per tonne gold and 14.92 grams per tonne silver over 26.2 metres (22.6-metre estimated true width) (21GW-02);
• 1.08 grams per tonne gold and 37.6 grams per tonne silver over 4.2 metres (3.6-metre estimated true width) (21GW-01);
• 0.90 gram per tonne gold and 63.2 grams per tonne silver over 4.6 metres (4.3-metre estimated true width) (21GW-11R).

Chief executive officer Daniel Kunz commented: "We are very pleased with results from the phase 1 drilling at Guadalupe West. This western extension of the Guadalupe structure has a mineralized strike length of 600 metres with good width and depth potential. The drill results reported today expand the overall gold-silver open-pit minable resource potential at Guadalupe West and indicate the deposit remains open along strike and at depth."

Guadalupe West

Based on historical drilling by prior operators, Guadalupe West contains a measured and indicated resource of 1,459,000 tonnes at 0.76 gram per tonne gold and 25.3 grams per tonne silver and accounts for approximately 6 per cent of the historical measured and indicated resource at Los Reyes calculated in April, 2020, prior to the start of the company's drilling programs (see Prime's April 2, 2020, news release).

Guadalupe West has opportunity to add incremental near-surface gold-silver resources that can be mined by open-pit methods. The area was previously mined with limited underground work. To date, 12 drill holes have been completed at Guadalupe West. An additional 1,410 metres of core drilling are planned as part of phase 2 to assess the resource potential at Guadalupe West.

Results indicate that the deposit remains open at depth, as demonstrated by drill hole 21GW-12R (1.68 grams per tonne gold and 25.8 grams per tonne silver over 19.8-metre estimated true width) and 21GW-03 (33.6 metres (23.7-metre estimated true width) at 0.38 gram per tonne gold and 23.6 grams per tonne silver). Additionally, a new mineralized zone was intersected in holes 21GW-11R and 21GW-12R south of the main structure. The limited drilling completed to date suggests that the new mineralized zone is near vertical with a minor dip to the north and may connect to the main structure at depth. Drill hole 21GW-11R also indicates that the deposit remains open to the west. Drill hole 21GW-07 tested below previously reported trenching and above historic drilling in what appears to be a higher-grade area of the deposit. The structure is open along strike to the west and east and potentially at depth.

The Guadalupe West area is contained in an east-west structural zone that is strongly silicified and contains larger veins and zones of silica stockworks. The mineralized zone is oriented nearly east-west and extends approximately 600 metres in length. The Guadalupe West veins have been mapped at outcrop across the sloping topography from 625 metres above sea level on the west side of the deposit to 750 metres above sea level on the east side. The structure is up to 50 metres wide with mineralized widths up to 23 metres. The mineralized structure is dominantly located between andesitic tuffs of the Lower Volcanic sequence and dips steeply to the south. Recent drilling has intersected up to 23-metre true width of quartz vein breccia with colloform, crustiform, saccharoidal and massive textures at about 550 metres above sea level that are associated with higher-grade boiling zone alterations. Future exploration work will test the potential for mineralization to continue farther west. There is strong evidence to potentially connect a western extension of Guadalupe West with the San Miguel West deposit that makes up part of the Central structure containing the San Miguel West, San Miguel East and Noche Buena deposits.

Adjacent to and east of the Guadalupe West deposit, there is a roughly 500-metre-by-500-metre inlier claim block owned by a third party. Seventy per cent of this inlier claim lies under a significant topographic high and is blocked to the north by a stream, minimizing the value of this claim for any potential open-pit operation.

Update on Guadalupe East drilling

Previously reported phase 1 high-grade results from the Estaca vein and new near-surface intercepts of the San Manuel and San Nicholas veins (see news release dated Sept. 8, 2021) resulted in the Guadalupe East deposit becoming one of the key focuses of the company's phase 2 exploration program.

To date, 22 of 75 phase 2 planned drill holes have been completed with pending assay results.

There are four drill rigs currently in operation at Guadalupe East testing the strike and depth extension of potential open-pit and underground resources at Estaca and open-pit resources on the San Manuel and San Nicholas veins. Drilling is focused on gaining an improved understanding of the potentially high-grade boiling zone controls of mineralization and the relative geometries of the Estaca, San Manuel, San Nicholas and other ancillary veins within this complex structural setting.

Drilling has two principal orientations: shorter holes from the north drilled to the southwest to test open-pit potential and longer holes drilled from the south to the northeast to test both open-pit and underground potential. A significant program of access road improvement has been undertaken as part of the phase 2 program to expand drill site access. This area of the Los Reyes project has relatively steep topography that limited the exploration efforts of prior operators.

Assay turnaround has improved. All other things being equal, in the normal course of business, results from the completed drill holes with assay results pending should become available in five to six weeks by the time full quality assurance/quality control procedures have been completed.

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-size or BQ-size ranges (47.6 millimetres and 36.5 millimetres, respectively) when required. Drill core samples are generally 1.50 metres 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. RC drilling returns rock chips and fines from a 133.35-millimetre-diameter tricone bit. The returns are homogenized and split into two halves, with one submitted for analysis and the other stored.

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, with fire assay, including overlimits fire assay reanalysis, completed at their 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 millimetres, 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-gram 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 through the initial assay technique is sent for gravimetric finish through method FA-530 or Au-GRA21. Silver analyses by MA300 and ME-ICP61 have an upper limit of 200 parts per million and 100 parts per million, respectively. Samples with overlimit silver values are reanalyzed by fire assay with gravimetric finish FA530 or Au-GRA21.

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