Mr. Daniel Kunz reports

PRIME MINING FINANCIAL RESULTS AND UPDATE ON EXPLORATION

Prime Mining Corp. has released its operating and financial results for the eight months ended Dec. 31, 2021.

Prime Mining is focused on the exploration and development of its wholly owned Los Reyes gold-silver project in Sinaloa state, Mexico.

Prime Mining chief executive officer Daniel Kunz commented: "With $22-million in cash, strong investor support, and an experienced technical and management team, Prime is well positioned to deliver on our planned phase 2 exploration program at Los Reyes. So far, 30,000 metres have already been drilled with nine drill rigs currently on site. The eight historical deposits at Los Reyes each have had a significant amount of Prime drilling added to them. We expect to prepare a new resource report in [first quarter] of 2023."

Corporate highlights during the quarter:

• On Dec. 20, the company announced that it had been added to the MVIS Global Junior Miners Index pursuant to the GDXJ's quarterly review and rebalancing for the fourth quarter.

Exploration highlights during the quarter:

• On Nov. 17, the company provided an update on its planned phase 2 drill program, which is anticipated to run from approximately November, 2021, to October, 2022, and will consist of approximately 250 new drill holes, for a minimum of 50,000 m. There are currently seven drill rigs operating on the property.

Subsequent event highlights:

• On Jan. 12, the company announced the Noche Buena deposit size expanding at its Los Reyes project with all 13 reported holes encountering potentially economic open-pit grade mineralization.
• On Feb. 17, the company announced new drill results from the Z-T structure located on the far west part of the project, with the holes confirming that the 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.
• On March 29, the company announced continued positive drill results from phase 1 and the continuing phase 2 drill program at Zapote South with 20 holes reported. This drill program, which represented the deepest drilling at Zapote, has expanded mineralization by 200 metres below the current resource pit to a potential depth of over 300 metres below surface.

Maintaining health and safety protocols

The company minimized the impact of COVID-19 on operations. To date, COVID-19 has not had a material effect on the company's activities. Prime Mining remains engaged with local stakeholders, and is pro-active in monitoring employees and contractors during this uncertain period. The company continues to closely adhere to the directives of all levels of government and relevant health authorities in Mexico and Canada.

Continuing community engagement and environmental stewardship

The responsible stewardship of the local environment where it operates is at the heart of its corporate values. It strives to minimize the environmental impact of its activities at all times. Plus, it aims to offset its activities by engaging in outreach initiatives to improve the local environment.

Selected financial data

The selected financial data are summarized from the company's consolidated financial statements and related notes thereto for the eight months ended Dec. 31, 2021. A copy of the financial statements and management's discussion and analysis is available at Prime Mining's website or on SEDAR.

                                     LOSS FOR THE PERIOD   

                                       Eight months ended Dec. 31, 2021   Year ended April 30, 2021

Loss and comprehensive loss                                 $14,297,342                 $10,699,998
Loss per share -- basic and diluted                               $0.13                       $0.13

                  FINANCIAL HIGHLIGHTS
 
                              Dec. 31, 2021   April 30, 2021

Cash                            $27,413,707      $32,026,806
Total assets                    $41,785,376      $44,791,540
Total current liabilities        $1,372,458         $894,128
Total liabilities                $2,470,784       $1,812,746
Total shareholders equity       $39,314,592      $42,978,794

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 Mining'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, 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 deposits are much larger than previously reported, and potential exists for new discoveries outside of current defined resources. The company is currently undertaking a 50,000-metre phase 2 exploration program.

About Prime Mining Corp.

Prime Mining is an ideal mix of successful mining executives, strong capital market 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.

We seek Safe Harbor.