Mr. Daniel Kunz reports

PRIME EXPANDS MINERALIZATION AT ZAPOTE SOUTH 42.7 METRE INTERCEPT OF 2.38 GPT GOLD AND 43.4 GPT SILVER 200 METRES BELOW CURRENT RESOURCE PIT

Prime Mining Corp. has released positive drill hole results from its 2021 phase 1 drill program and its continuing phase 2 drill program at the Zapote South deposit. Zapote South is one of the eight known gold-silver deposits at the company's wholly owned Los Reyes project located in Sinaloa State, Mexico.

Being reported today are 20 new drill holes from Zapote South, including 15 diamond drill and five reverse circulation holes. Eleven of the holes represent final results of the Zapote South phase 1 program and nine holes from the continuing phase 2 program.

Highlights from the Zapote South drill program include:

• 2.38 grams per tonne gold and 43.4 g/t silver over 42.7 metres (27.4 m estimated true width (ETW)) (22ZAP-55R);
• 7.75 g/t Au and 56.8 g/t Ag over eight m (5.8 ETW) (22ZAP-45);
• 2.68 g/t Au and 15.4 g/t Ag over 6.1 m (3.9 m ETW) (22ZAP-54R);
• 2.91 g/t Au and 41.3 g/t Ag over six m (5.6 m ETW (21ZAP-37);
• 2.73 g/t Au and 22.6 g/t Ag over 6.1 m (4.3 m ETW) plus 1.49 g/t Au and 19.9 g/t Ag over 13.7 m (8.8 m ETW) and 1.49 g/t Au plus 6.7 g/t Ag over 1.53 m (1.1 m ETW) (22ZAP-53R);
• 7.10 g/t Au and 20.5 g/t Ag over 2.3 m (1.9 m ETW) (21ZAP-36);
• 1.92 g/t Au and 42.3 g/t Ag over 7.50 m (5.3 m ETW) (21ZAP-43);
• 1.09 g/t Au and 32.2 g/t Ag over 28.3 m (18.2 m ETW) (21ZAP-32).

Chief executive officer of Prime, Daniel Kunz, commented: "Drilling continues to be highly successful at Zapote South as we consistently encounter robust high-grade mineralization with an expanding footprint. The Z-T structure is proving to be an area of good continuity and remains open at depth below the Zapote pits and the current Tahonitas drilling. Recent drilling represents our deepest drilling at Zapote and has expanded mineralization a further 200 metres deeper and significantly to the southeast. Results now indicate that the ZT structure is mineralized over three kilometres to a potential depth of over 300 m below surface."

Executive vice-president of exploration at Prime, Scott Smith, commented: "Hole 22ZAP-55R contains one of the widest and deepest intercepts drilled to date and this new discovery opens the opportunity for the entire Z-T structure at depth. The RC hole ended in mineralization at 406 metres above sea level and was terminated due to encountered water. The intercept is over 200 m below the bottom of the current resource with a width of 42.7 m (27.4 m ETW) and grades of 2.38 g/t Au and 43.4 g/t Ag."

Phase 2 exploration update

Nine drill rigs are currently operating at Los Reyes in the phase 2 program and have completed 30,000 m (106 holes) of the planned 50,000-metre program. Five drills are operating on Guadalupe East, two on the Central structure, one on the Z-T structure and one on other generative targets. Considerable progress has been made on the previously experienced assay backlog with assay turnaround has been reduced to approximately five weeks.

Zapote South

The Zapote South deposit is part of the Zapote-Tahonitas major northwest-southeast-trending structure, as such it remains open along strike and at depth. To date the company has defined this structure over three kilometres in length.

The majority of higher-grade mineralization encountered to date has been found between 710 and 480 metres above sea level. However, 22ZAP-55R, at the north end of Zapote South, encountered significant widths of mineralization at 400 masl along the margins of a large rhyolite intrusive.

Mineralization at Zapote South consists primarily of white to grey crystalline to chalcedonic quartz, quartz breccia and stockwork exploiting 45-degree southwest-dipping fault structures within or along the margins of rhyolite dikes that intrude both andesitic tuffs and rhyolite. Quartz is massive to crustiform, locally displaying colliform to bladed replacement textures. Higher-grade intervals are marked by finely banded green adularia. Gold distribution appears to be zoned within the quartz-bearing structure, having a one to five m thick higher-grade section of over four g/t Au enveloped by a broader zone of over 10.0 m of lower-grade mineralization. Higher-grade structures appear continuous along strike.

Quality assurance/quality control 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. RC drilling returns rock chips and fines from a 133.35-millimetre diameter tricone bit. The returns are homogenized and split into two halves, 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 Labs, 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 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-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 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 g/t gold and 4,955.0 g/t silver. Composite intervals use a cut-off grade of 0.20 g/t gold.

Qualified person

Mr. 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, a member of the TSX Venture 50, is an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators who have united to undertake exploration drilling to expand the known gold-silver resource at the historically productive Los Reyes project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.

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