Mr. Daniel Kunz reports

PRIME MINING DOUBLES HIGH-GRADE LOS REYES GOLD-SILVER RESOURCE

Prime Mining Corp. has released an updated mineral resource estimate (MRE) for its Los Reyes gold-silver project, located in Sinaloa state, Mexico.

Resource highlights:

• The addition of 100,000 metres (m) of Prime drilling has doubled the current MRE compared with the April, 2020, resource, with a discovery cost of approximately $25 (U.S.) per gold equivalent (AuEq) ounce (oz).
• At the resource gold cut-off grade of 0.22 gram per tonne (g/t), Prime's updated open-pit MRE contains:
  • 1.47 million indicated AuEq ounces at a 1.68 g/t average grade. This represents a 73-per-cent increase in measured and indicated AuEq ounces and 26-per-cent increase in AuEq grade. This is one million ounces of gold at 1.16 g/t and 35 million ounces of silver at 40.4 g/t;
  • 0.73 million inferred AuEq ounces at a 1.26 g/t average grade. This represents a 175-per-cent increase in AuEq ounces and 8-per-cent increase in AuEq grade. This is 500,000 ounces of gold at 0.85 g/t and 18.4 million ounces of silver at 31.5 g/t.
• Using a higher one g/t gold cut-off grade, the MRE highlights a robust, extremely high-grade open-pit resource that contains in excess of one million AuEq indicated ounces at an average AuEq grade of 3.70 g/t.
• The MRE has a high-grade open-pit mill resource and a lower-grade heap leach portion.
• The MRE includes drilling completed before Dec. 31, 2022, from only the three main zones at Los Reyes: Guadalupe, Z-T and Central.
• This MRE does not include positive results from:
  • Mariposa, Las Primas and Fresnillo;
  • Highly prospective exploration targets outlined in Prime's Feb. 27 news release;
  • Over 20,000 m drilled to date during 2023.

Chief executive officer Daniel Kunz commented: "Congratulations to our exploration team for doubling the known gold-silver resource at Los Reyes while simultaneously increasing the average grade and improving the quality and confidence in the mineral resource estimate. Included in the open-pit resource tonnes and grade is a notable high-grade mill feed component. The key elements of our continuing discoveries made over the past two years are the size and scale of the high-grade mineralization. Ongoing metallurgical test work is confirming the relatively simple, high-recovery nature of the resources. With the additional proceeds from the early warrant exercise, we will have the flexibility to increase the drill program as we maintain our success-based approach to exploration."

Scott Smith, executive vice-president of exploration, added: "We remain hard at work drilling known extensions to the resource and new generative exploration areas highlighted earlier this year. We are targeting yet another doubling of our mineral resource. Since the MRE year-end drilling cut-off, we have already drilled an additional 20,000 metres at Los Reyes that are not included in today's mineral resource estimate. In the majority of the mineral envelopes, our resource pits pull right to the extent of our drilling -- these represent immediate expansion opportunities with our ongoing 2023 drilling. Prime has already increased its 2023 drill program to 45,000 m and the team is already planning for an expanded fall drill program."

With continuing drilling success, the company believes there is significant potential to expand the MRE.

Resource description

The Los Reyes resource is composed of three main areas: Guadalupe, Z-T and Central. Resources were estimated assuming a gold price of $1,700 and silver price of $22 and various processing, operating cost and other economic parameters. Resources are reported from blocks within an economically constrained pit, containing gold grades greater than 0.22 g/t. The resource areas remain open along strike and at depth.

The majority of the Los Reyes resource is contained within a high-grade envelope. For example, at a one g/t gold cut-off, the Los Reyes MRE contains in excess of one million gold equivalent ounces at an average grade of 3.70 g/t AuEq in the indicated category and 374,000 ounces at a grade of 3.07 g/t AuEq in the inferred category.

For the purposes of this MRE, all resources are assumed to be mined using conventional open-pit methods.

The MRE was estimated using a drilling cut-off date of Dec. 31, 2022. It is based on a resource block model developed from almost 50,000 metres of drilling completed by previous property owners and over 100,000 m of drilling completed by Prime, of which more than 90 per cent is diamond drill core.

This MRE was completed under the supervision of John Sims, a member of the American Institute of Professional Geologists since 2004, an independent qualified person as defined by National Instrument 43-101 guidelines, with over 35 years of related experience. Prime will file an NI 43-101-compliant updated technical report in support of this resource update within 45 days of this release. The following information is available on the company's website, including the full drill hole table up to Dec. 31, 2022.

Next steps

With the resource areas remaining open along strike and at depth, Prime will complete an increased 45,000-metre exploration drilling program at Los Reyes in 2023. Over all, Prime's discovery cost over the last three years is less than $25 (U.S.) per AuEq ounce. Supported by a strong treasury bolstered by the recently announced warrant acceleration (see Prime's April 11, 2023, news release), Prime will continue to drill the highly prospective Guadalupe, Z-T and Central zones in order to expand known resources and further explore newly developing resource areas. Work will also continue on other technical areas, including metallurgical test work, geotechnical assessments, mine and processing stream optimization and trade-offs, environmental studies, and social contributions.

QA/QC (quality assurance/quality control) protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetre (mm)), 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 (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, with one-half submitted for analysis and the other half stored.

Sample QA/QC measures include unmarked certified reference materials and blanks, as well as preparation duplicates, are 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 staff 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 over limits fire assay reanalysis, completed at their 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-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 (ppm). Any sample that produces an overlimit gold value through the initial assay technique is sent for gravimetric finish through 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 200.0 g/t gold and 4,955.0 g/t silver.

Qualified person

Mr. 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 metres. 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 staff 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.

We seek Safe Harbor.