Mr. Daniel Kunz reports

PRIME DRILLS MULTIPLE WIDE, HIGH-GRADE INTERCEPTS IN Z-T AREA INCLUDING BONANZA-GRADE INTERVALS

Prime Mining Corp. has released additional assay results from its recently completed phase 2 drill program, and start of phase 3 drilling. These results are from 48 drill holes in the Z-T area where Prime continues to delineate and expand the multimillion-ounce Los Reyes high-grade gold-silver deposit. Los Reyes and its three known gold-silver deposit areas (Guadalupe, Z-T and Central) have a mineralized footprint of over 15 square kilometres, and are located in a highly prospective, 500-year-old mining-friendly district of Sinaloa, Mexico.

Highlight Z-T drill intercepts:

• Stepout intercepts:
  • 10 grams per tonne (g/t) gold (Au) and 131 g/t silver (Ag) over 3.1 metres (3.1 m estimated true width (ETW)), including 28.5 g/t Au and 310 g/t Ag over 1.1 m (1.1 m ETW) in hole 22TA-51;
  • 4.7 g/t Au and 103 g/t Ag over 11.4 m (8.7 m ETW), including 39.6 g/t Au and 174 g/t Ag over 0.9 m (0.7 m ETW) in hole 22ZAP-87;
  • 2.7 g/t Au and 451 g/t Ag over 6.3 m (4.8 m ETW), including 4.8 g/t Au and 821 g/t Ag over three m (2.3 m ETW) in hole 22TA-41;
  • 3.6 g/t Au and 20 g/t Ag over 16 m (13.8 m ETW), including 22.2 g/t Au and 41 g/t Ag over 2.2 m (1.9 m ETW) in hole 22ZAP-82.
• Infill intercepts:
  • 4.2 g/t Au and 59 g/t Ag over six m (5.4 m ETW), including 23.6 g/t Au and 103 g/t Ag over 0.9 m (0.8 m ETW) in hole 22TA-43;
  • 6.9 g/t Au and 33 g/t Ag over 15 m (14.8 m ETW), including 21 g/t Au and 55 g/t Ag over 1.5 m (1.5 m ETW) in hole 22SMW-12.

Drilling in the Z-T area of Los Reyes continues to encounter high-grade gold-silver intercepts and is anticipated to grow and merge three previously reported economically constrained resource pits.

Chief executive officer Daniel Kunz commented: "This drilling served two purposes -- to continue to grow the resource pits by discovering high-grade extensions along strike and down dip through stepout drilling and to confirm the confidence in our upcoming resource report through infill drilling. These results support our view that the Z-T area current resource pits are merging into a more continuous single pit."

Scott Smith, executive vice-president of exploration, added: "The Z-T area continues to reveal wide zones of potential ore well above cut-off grades with potentially low strip ratios. The stepout drilling is showing strong potential to expand the resource in a number of areas and directions. We have intercepted mineralization over 300 m below the current resource pits and shown that the deposits remain open down dip and along strike."

Significant intercepts from both infill and stepout holes are listed in the table entitled "Significant intercepts table from recent drilling at Z-T," and show the expanse and continuity of mineralization in the Z-T area. The Z-T structure is currently defined over more than 400 m of elevation difference, as demonstrated by intercepts in 22SMW-08 at 760 m above sea level and 22ZAP-78 at 320 m above sea level. During follow-up drilling to 22ZAP-55R (released March, 2022) the company has now defined a significant area in the western down-dip extension of Zapote North and South (see holes 22ZAP-75, 78 and 82-84), as well as at depth in Tahonitas and the connection with Zapote South (see holes 22TA-41, 51, 53, 54 and 22ZAP-87). 22ZAP-78 in Zapote North and 22TA-53 in Tahonitas show that these deposits are open at depth and along strike.

Phase 2 drilling was completed on Oct. 31, 2022. In total, 74,216 metres were drilled in 259 holes with zero lost-time injuries or material safety incidents. Combined with phase 1 and continuing drilling, Prime has now drilled over 100,000 metres in over 400 holes.

Phase 3 drilling began in November and, after a short holiday break, is continuing again with five rigs operating at site. Drilling is focused on resource expansion and delineating new potential ore zones. Further details of the phase 2 and phase 3 drilling results will be released as they become available. Prime anticipates the release of an updated National Instrument 43-101 resource estimate by mid-2023. The updated resource will include all phase 1 and phase 2 results, plus some initial results from the continuing phase 3 drilling program.

In addition to the significant intercepts shown above, Prime has released the full current assay table for the Z-T area. While some of the holes included in that table are more exploratory in nature, holes targeting the key mineralized vein structures continue to indicate potential high-grade, high-margin resource expanding ounces. Included in these results are intersections of various structures, including previous underground workings. Where previous workings or stopes have encountered what has been interpreted as backfill material, these segments have been included in the table and identified as such in the vein column, and will be excluded from future reported resource inventories and will not influence interpolated resource block grades. Highlights and significant intercepts shown herein only include what has been interpreted as in-situ material, and do not include any assayed backfill material.

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. After logging, intervals are identified to be sampled and split, and one-half is submitted for assay. RC drilling returns rock chips and fines from a 133.35 mm diameter tricone bit. The returns are homogenized and split into two halves, with one-half submitted for analysis and the other half stored.

Sample QA/QC measures include unmarked certified reference materials, blanks and field duplicates, as well as preparation duplicates inserted into the sample sequence, and make up approximately 8 per cent of the samples submitted to the laboratory 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 its respective Hermosillo, Mexico, laboratories and multielement analysis completed in North Vancouver, 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 g 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 (ppm). 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 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 200 g/t gold and 4,955 g/t silver.

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.

About the Los Reyes gold and silver project

Los Reyes is a rapidly evolving, high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa state, Mexico. 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 and holds potential for additional discovery and resource expansion.

Since acquiring Los Reyes in 2019, Prime has spent approximately $30-million (U.S.) on direct exploration activities and has completed two phases of comprehensive drilling totalling over 100,000 m. Results to date suggest the three known main deposit areas, Guadalupe, Central and Z-T, are larger than previously reported. Potential also exists for new discoveries outside of the currently defined resource areas.

About Prime Mining Corp.

Prime is managed by an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators all focused on unlocking the full potential of the Los Reyes project. The company has a well-planned capital structure with a strong management team and insider ownership.

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