Mr. Daniel Kunz reports

PRIME INTERCEPTS 62 GPT AU AND 978 GPT AG OVER 3.6 METRES IN STEP OUT DRILLING AT GUADALUPE EAST

Prime Mining Corp. has released additional phase 2 drill results from 12 stepout drill holes at the Guadalupe East deposit. Guadalupe East is one of eight known gold-silver deposits that comprise the current resource at Los Reyes.

Highlight drill intercepts -- Guadalupe East:

• 22GE-53 has four intercepts:
  • 61.99 grams per tonne gold and 977.6 grams per tonne silver over 3.6 metres estimated true width;
  • 9.67 grams per tonne gold and 314.0 grams per tonne silver over 1.1 metres estimated true width;
  • 3.01 grams per tonne gold and 220.0 grams per tonne silver over 1.0 metre estimated true width;
  • 5.90 grams per tonne gold and 341.0 grams per tonne silver over 0.7 metre estimated true width;
• 22GE-48 has nine intercepts:
  • 2.93 grams per tonne gold and 61.6 grams per tonne silver over 6.1 metres estimated true width;
  • 4.29 grams per tonne gold and 125.5 grams per tonne silver over 3.75 metres estimated true width;
  • 1.78 grams per tonne gold and 81.9 grams per tonne silver over 1.5 metres estimated true width;
  • 3.19 grams per tonne gold and 34.1 grams per tonne silver over 1.5 metres estimated true width;
  • 3.68 grams per tonne gold and 161.0 grams per tonne silver over 1.2 metres estimated true width;
  • 2.31 grams per tonne gold and 97.6 grams per tonne silver over 2.0 metres estimated true width;
  • 1.62 grams per tonne gold and 120.0 grams per tonne silver over 1.5 metres estimated true width;
  • 1.16 grams per tonne gold and 79.3 grams per tonne silver over 3.8 metres estimated true width;
  • 1.24 grams per tonne gold and 88.0 grams per tonne silver over 1.5 metres estimated true width;
• 22GE-45 -- 12.79 grams per tonne gold and 300.2 grams per tonne silver over 3.3 metres estimated true width;
• 22GE-51:
  • 3.01 grams per tonne gold and 161.0 grams per tonne silver over 0.6 metre estimated true width;
  • 1.25 grams per tonne gold and 26.9 grams per tonne silver over 1.5 metres estimated true width.
• 22GE-46 -- 1.95 grams per tonne gold and 154.9 grams per tonne silver over 2.4 metres estimated true width.

Chief executive officer Daniel Kunz commented: "The high-grade drill results reported today will continue to expand the resource potential at Guadalupe East considerably. We are encouraged by multiple intercepts of high-grade gold-silver mineralization being encountered in individual drill holes on the west end of this area. We await assay results from more stepout drill holes and expect to report these results as soon as they become available. Ongoing drilling has now defined the Guadalupe East vein group length over 420 metres and the total strike length of the Guadalupe East vein system now over 1,000 metres."

Since the inception of the company, Prime has drilled approximately 75,002 metres and completed 283 holes at Los Reyes. As a result of greater efficiencies and operational successes, the current phase 2 program, originally planned at 50,000 metres, is going to be expanded significantly as crews have now completed 49,350 metres, with drilling planned to continue until the end of October. To date, 161 phase 2 drill holes have been completed and eight drills continue to operate. Including the drilling results herein, 196 drill holes have been released and 87 are pending.

Guadalupe East

Phase 2 drilling at Guadalupe East has been highly successful in identifying significant potential to expand the pit-constrained resource within the Estaca mineralized system. To date, phase 2 drilling has targeted only a small portion of the over 1,000-metre-long Estaca vein and a vertical height of at least 400 metres. The vein mineralization is still open along strike and up dip to the surface. A trail used by previous historic mining has been identified using detailed lidar data that, once restored, can lead to year-round drilling, shorter drill holes at Guadalupe East as well as an improved angle into the orebody.

Twelve new drill holes are being released (see attached table), 10 of which successfully intersected the main Estaca vein system. Six drill holes intersected high-grade gold and silver mineralization below the current pit-constrained resource while four holes were widely spaced and drilled to the east of the pit-constrained resource (one hole was abandoned at 30 metres due to technical issues and redrilled with slight change to direction and dip). All holes intercepted the high-grade Estaca epithermal vein, with 22GE-48 and 22GE-53 each intercepting a vein group within the Estaca zone within and 50 metres below the pit-constrained resource.

The six drill holes (22GE-45, 22GE-46, 22GE-48, 22GE-51, 22GE-53 and 22GE-60) with high-grade mineralized intercepts below the pit-constrained resource limits demonstrate strong potential for near-pit resource expansion. The main intercepts in 22GE-53 started 50 metres below the pit-constrained resource and encountered old workings. It had an 11.2-metre interval (474 metres to 485.2 metres) that included 5.3 metres of high-grade mineralization (no waste intervals) and three different stopes/workings totalling 5.0 metres, with backfill encountered in the first stope/working that returned 13.7 grams per tonne over 1.7 metres. Drill holes (22GE-50R, 22GE-52, 22GE-55R, 22GE-56R and 22GE-58) were drilled 250 metres to 600 metres east of the boundary of the pit-constrained resource and up to 200 metres east of the nearest drill intersection. Drill hole 22GE-55R was abandoned at 30 metres due to technical issues on the drill rig and was redrilled with a slight change to direction and dip (22GE-58).

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 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 (reverse circulation) 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 quality assurance/quality control 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 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 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 by 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 Labs are ISO/IEC accredited assay laboratories. Drill core assay results range from below detection to 163.0 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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