Mr. Daniel Kunz reports

PRIME MINING FINANCIAL RESULTS, AGM RESULTS AND UPDATE ON EXPLORATION

Prime Mining Corp. has released its operating and financial results for the three months ended March 31, 2022.

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: "We currently have nine drill rigs operating and are making great progress, having already completed nearly 35,000 metres of drilling in phase 2. With a strong treasury, 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 on time and budget. Each of the eight historical deposits at Los Reyes now have a significant amount of Prime drilling added to them. We anticipate delivering a new resource report in the first quarter of 2023."

Corporate highlights during the quarter

On March 29, the company announced financial results for an eight-month period ended Dec. 31, 2021.

On March 30, the company appointed Chantal Gosselin to the board of directors.

Exploration highlights during the quarter

On Jan. 12, the company announced the expansion of the Noche Buena deposit at its Los Reyes project with all 13 reported holes encountering potentially economic open-pit grade mineralization. Additionally, the company reported that 35 drill holes and 9,900 metres of core and reverse circulation drilling had been completed as part of the phase 2 exploration program.

On Feb. 17, the company announced new drill results from the Z-T structure located on the far west portion 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 Feb. 24, the company announced the first drill results from the Guadalupe West deposit, as well as provided a progress update on the deposit at Guadalupe East. Twelve new drill holes were reported from Guadalupe West: seven diamond drill core and five reverse circulation. This is the first drilling reported by the company at this deposit, with further drilling planned in phase 2.

On March 8, the company announced positive results from a key drill hole (22GE-33) on the Guadalupe East deposit. This hole struck a 41.6-metre-long mineralized intercept within the high-grade Estaca vein.

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 m below the current resource pit to a potential depth of over 300 m below surface. Eleven of the reported holes represent final phase 1 results while nine holes were featured from the continuing phase 2 program.

Subsequent event highlights

On April 12, the company announced new high-grade stepout results from Guadalupe East, which resulted in the deepest mineralization encountered to date there. Bonanza grades were encountered in a 550-metre stepout from the 2020 inferred open-pit boundary with drill hole 22GE-32 intercepting 52.1 grams per tonne gold and 1,007.6 g/t silver over 4.3 m plus 7.62 g/t Au and 1,970.0 g/t Ag over 1.5 m.

On May 2, the company announced new drill results that continue to expand the Zapote North deposit northward along the structure and confirm the continuity of mineralization of Mariposa to the south. These holes confirmed that gold-silver mineralization extends from Zapote North to Mariposa.

Maintaining health and safety protocols

The company continues to mitigate 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.

Community engagement and environmental stewardship strategy

The company continued to gather environmental and community data in the quarter to help support its ESG (environmental, social and governance) programs, including completion of a materiality assessment, strategic plan and disclosure matrix. It strives to minimize the environmental impact of its activities and ensure that Los Reyes has a positive impact on its host communities.

Selected financial data

The attached selected financial data are summarized from the company's consolidated financial statements and related notes thereto for the three months ended March 31, 2022. A copy of the financial statements and management's discussion and analysis is available at the Prime Mining website or on SEDAR.

                                LOSS FOR THE QUARTER

                                     Three months ended                Three months ended 
                                         March 31, 2022                    April 30, 2021

Loss and comprehensive loss                  $8,038,370                        $3,324,739             
Loss per share -- basic and diluted               $0.07                             $0.04

                FINANCIAL HIGHLIGHTS

                          March 31, 2022   Dec. 31, 2021

Cash                         $21,535,820     $27,413,707   
Total assets                 $35,954,314     $41,785,376   
Total current liabilities     $1,387,861      $1,372,458    
Total liabilities             $2,484,106      $2,470,784    
Total shareholders equity    $33,470,208     $39,314,592   

Annual general and special meeting results

The company held its annual general and special meeting of shareholders today, where the shareholders voted in favour of all the items put forward by the board of directors and management.

Shareholders voted in favour of the election of all director nominees: Murray John (chairman), Daniel Kunz, Andrew Bowering, Paul Larkin, Marc Prefontaine, Paul Sweeney, Edie Hofmeister and Ms. Gosselin.

The shareholders also approved the following items:

• Reappointment of Davidson & Company LLP, chartered professional accountants, as auditor of the company for the ensuing year and authorization of the board to fix the remuneration of the auditor;
• Fixing the number of the directors of the company for the ensuing year at seven (eight);
• Election of directors to hold office for the ensuing year;
• Reapproval of the company's stock option plan (see information circular);
• Reapproval by disinterested shareholders of the long-term incentive plan (see information circular).

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 m 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.