Mr. Daniel Kunz reports

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

Prime Mining Corp. has provided new results from core drilling at the Z-T area, one of three main zones hosting a gold-silver mineral resource estimate (MRE) announced May 2, 2023, at the company's Los Reyes project located in Sinaloa state, Mexico. Prime's recently announced MRE contains 1.47 million indicated AuEq (gold equivalent) (1) ounces at a 1.68-gram-per-tonne average grade and 730,000 inferred AuEq ounces at 1.26 g/t average grade (see May 2, 2023, news release and below for additional details). Results reported today are from 14 new core holes drilled at the southeast end of the Z-T area and are all outside of the recently announced resource pit shell from the Z-T area. This drilling confirms the potential continuing expansion of gold-silver resources in addition to and not included in the company's MRE. This drilling follows similar Z-T results released Jan. 11, 2023.

Highlights

Tahonitas

• 3.33 g/t Au and 220.9 g/t Ag, or 6.19 g/t AuEq, over 12.0 metres (11.6 m estimated true width or ETW), including 24.0 g/t Au and 1,385.0 g/t Ag (41.92 g/t AuEq) over 1.0 m (1.0 m ETW) in hole 23TA-64;
• 1.52 g/t Au and 24.8 g/t Ag (1.84 g/t AuEq) over 10.0 m (9.8 m ETW), including 7.94 g/t Au and 61.4 g/t Ag (8.73 g/t AuEq) over 1.5 m (1.5 m ETW), in hole 23TA-57;
• 1.03 g/t Au and 34.5 g/t Ag (1.48 g/t AuEq) over 5.3 m (4.5 m ETW), including 2.69 g/t Au and 52.5 g/t Ag (3.37 g/t AuEq) over 1.3 m (1.1 m ETW), in hole 23TA-60.

Zapote South

• 0.96 g/t Au and 27.3 g/t Ag (1.31 g/t AuEq) over 19.5 m (13.8 m ETW) and 0.84 g/t Au and 14.4 g/t Ag (1.02 g/t AuEq) over 12.0 m (8.5 m ETW) in hole 23ZAP-98;
• 0.74 g/t Au and 36.9 g/t Ag (1.22 g/t AuEq) over 16.5 m (15.9 m ETW), including 2.72 g/t Au and 155.4 g/t Ag (4.73 g/t AuEq) over 1.5 m (1.4 m ETW) in hole 23ZAP-95A;
• 1.01 g/t Au and 23.3 g/t Ag (1.31 g/t AuEq) over 12.0 m (8.5 m ETW) and 0.79 g/t Au and 22.8 g/t Ag (1.09 g/t AuEq) over 4.2 m (3.0 m ETW) in hole 23ZAP-99.

Prime Mining chief executive officer Daniel Kunz commented: "These results are from stepout drill holes designed to test for and expand mineralization at depth below the Z-T resource pit shell. The width and grades of the drilling results released today continue to identify new potential mill feed extending the mineralization up to 100 m vertically below the recently reported resource pit bottom and spanning a 500 m strike length. We also expanded an exceptional silver-rich, high-grade ore chute in hole 23TA-64 at Tahonitas that is unique in the Z-T area."

Scott Smith, executive vice-president of exploration, added: "At Z-T we continue to discover wide areas of potential ore well above the cut-off grade, outside of the most recently announced resource pit shells. The stepout drilling is already expanding the mineralized envelope beyond the latest resource pits in a number of areas and directions. At Zapote South, mineralization was intersected 170 m down dip of the latest resource pit. The results from each of the 14 holes display thicknesses and grades consistent with the latest resource. The deposits remain open down dip and along strike."

Drilling results released today demonstrate the potential at Los Reyes for continued resource expansion.

 
                  SIGNIFICANT INTERCEPTS FROM RECENT DRILLING AT Z-T

                    From        To    Length       ETW        Au        Ag      AuEq (1)
Drill hole            (m)       (m)       (m)       (m)     (g/t)     (g/t)     (g/t)
                                                                                    
23TA-57            330.4     340.3      10.0       9.8      1.52      24.8      1.84
including          334.5     336.0       1.5       1.5      7.94      61.4      8.73
23TA-60            343.9     349.2       5.3       4.5      1.03      34.5      1.48
including          345.0     346.3       1.3       1.1      2.69      52.5      3.37
23TA-64            256.1     268.1      12.0      11.6      3.33     220.9      6.19
including          257.2     261.3       4.1       3.9      2.63     185.1      5.02
and including      262.3     264.3       2.0       1.9     13.72     769.9     23.68
including          262.3     263.3       1.0       1.0     24.00   1,385.0     41.92
23ZAP-95A          296.6     313.0      16.5      15.9      0.74      36.9      1.22
including          310.0     311.5       1.5       1.4      2.72     155.4      4.73
23ZAP-98           282.0     294.0      12.0       8.5      0.84      14.4      1.02
including          282.0     285.0       3.0       2.1      1.46      22.9      1.76
23ZAP-98           303.0     322.5      19.5      13.8      0.96      27.3      1.31
including          318.0     319.5       1.5       1.1      3.22      43.8      3.79
23ZAP-99           314.5     326.5      12.0       8.5      1.01      23.3      1.31
including          319.0     322.0       3.0       2.1      1.77      41.2      2.30
23ZAP-99           381.3     385.5       4.2       3.0      0.79      22.8      1.09
including          384.0     385.5       1.5       1.1      1.63      24.2      1.94

(1) Gold equivalent grades are calculated based on an assumed gold price of $1,700 
    (U.S.) per ounce and silver price of $22 per ounce, based on the formula AuEq 
    grade (g/t) is equal to Au grade plus Ag grade multiplied by 0.0129. Metallurgical 
    recoveries are not considered in the in situ grade estimate, but are estimated to 
    be 93 per cent and 83 per cent for gold and silver, respectively, when processed 
    in a mill, and 72 per cent and 25 per cent, respectively, when heap leached.
 

Quality assurance/quality control protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominantly 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, the core is cut 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 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 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 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. 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 International Organization for Standardization/International Electrotechnical Commission accredited assay laboratories.

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. Since acquiring Los Reyes in 2019, Prime has spent approximately $30-million (U.S.) on direct exploration activities and has completed over 120,000 m of drilling. In May, 2023, Prime announced an updated multimillion-ounce high-grade open-pit resource (see below, and refer to (1) and the May 2, 2023, press release for more details).

May 2, 2023, resource statement

Drilling is continuing and suggests that the three known main deposit areas (Guadalupe, Central and Z-T) are larger than previously reported. Potential also exists for new discoveries where mineralized trends have been identified outside of the currently defined resource areas.

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.

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.

We seek Safe Harbor.