Mr. Daniel Kunz reports

PRIME INTERCEPTS 2.7 GPT AU AND 130 GPT AG OVER 18 METRES IN STEP-OUT DRILLING AT SAN MIGUEL EAST

Prime Mining Corp. has released additional assays from the phase 2 stepout and infill drilling program at Los Reyes. The project hosts an existing multimillion-ounce gold and silver resource and is located in the mining-friendly jurisdiction of Sinaloa, Mexico. Today's results are from eight drill holes at the San Miguel East deposit located in the western part of Los Reyes targeting mineralization below the current resource. San Miguel East is one of eight known gold-silver deposits that comprise the resource at Los Reyes.

Chief executive officer Daniel Kunz commented: "Our ongoing phase 2 drilling of stepout holes at San Miguel East has made discoveries of both mill- and heap-leach-grade mineralization that are expanding the potential resource at this deposit. Once again, our drilling continues to intersect multiple veins downhole that increase the resource potential. We also expect that the deposit will grow along strike to the southeast eventually connecting with the nearby Noche Buena deposit."

Highlight drill intercepts

San Miguel East:

• 2.72 grams per tonne gold and 129.8 gpt silver over 18 metres (16.9 m estimated true width (etw)) and 1.24 gpt Au and 14 gpt Ag over three m (2.6 m etw) and 1.12 gpt Au and 4.2 gpt Ag over three m (2.3 m etw) (22SME-11);
• 4.86 gpt Au and 151.5 gpt Ag over 6.1 m etw and 3.96 gpt Au and two gpt Ag over 1.2 m etw and 1.51 gpt Au and 5.3 gpt Ag over 1.8 m etw (22SME-13);
• 1.88 gpt Au and 283.7 gpt Ag over 2.9 m (2.6 m etw) (22SME-10);
• 1.25 gpt Au and 67.2 gpt Ag over six m (5.4 m etw) (22SME-14).

To date, Prime has drilled approximately 83,235 metres and completed 323 holes at Los Reyes. The phase 2 program has now completed 57,585 metres, with drilling planned to continue until the end of October. To date, 201 phase 2 drill holes have been completed and six drills continue to operate. Including the drilling results herein, 224 drill holes have been released and 99 are pending.

San Miguel East

The eight drill holes at San Miguel East were drilled down dip of the known structure at depth. All eight encountered mineralization with seven of the eight extending mineralization beyond the current historic resource. The southernmost hole, 22SME-11, with an 18-metre intercept listed above, was at 560 metres above sea level. South of this hole is open along strike with potential to expand the San Miguel East deposit and connect it with the nearby Noche Buena deposit.

Mineralization at San Miguel East 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. Computer 3-D modelling of grades is suggesting a steep south-southeast rake of the higher-grade internal zone.

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. Reverse circulation drilling returns rock chips and fines from a 133.35 mm diametre 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 163 gpt gold and 4,955 gpt silver. Composite intervals use a cut-off grade of 0.20 gpt 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.

Based entirely on historic drilling by prior operators, Los Reyes hosts a pit-constrained measured and indicated resource of 630,000 gold and 16.6 million silver ounces plus inferred resources of 180,000 gold and 6.8 million silver ounces inferred across the west (Zapote and Tahonitas), central and east (Guadalupe) deposits. Additional prospects exist for property-wide underground resources and for open-pit resources in the central zone at Las Primas and Fresnillo and farther east at Orito and Mina.

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 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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