Mr. Daniel Kunz reports

PRIME FILES NI 43-101 TECHNICAL REPORT FOR ITS HIGH-GRADE LOS REYES GOLD-SILVER PROJECT RESOURCE UPDATE

Prime Mining Corp. has filed a technical report for the updated mineral resource estimate (MRE), reported on May 2, 2023, for its Los Reyes gold-silver project located in Sinaloa state, Mexico. The report, dated June 12, 2023, is titled "The Los Reyes Project, Mexico."

The 2023 technical report was prepared under the supervision of John Sims, CPG. Mr. Sims is president of Sims Resources LLC and is an independent qualified person in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The 2023 technical report supersedes the technical report on the Los Reyes project dated April 2, 2020.

The 2023 technical report can be found on the company's website and on SEDAR, under the company's issuer profile.

Resource highlights:

• The addition of 100,000 metres 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.
• At the resource gold cut-off grade of 0.22 gram per tonne, 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 a 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;
  • 730,000 inferred AuEq ounces at a 1.26 g/t average grade. This represents a 175-per-cent increase in AuEq ounces and an 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, higher-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 34,000 m drilled to date during 2023.
• With continuing drilling success, the company believes there is significant potential to expand the MRE.

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

New multiple wide, high-grade intercepts in Z-T area

Following the May 2 resource update news release, Prime reported on May 24, 2023, the results from 14 new core holes drilled at the southeast end of the Z-T area, which were all outside of the resource pit shell. These results confirm the potential continuing expansion of gold-silver resources in addition to and not included in the company's MRE and follow similar Z-T results released Jan. 11, 2023. Recent results from Z-T drilling are expected to be reported in the coming weeks.

Next steps

Prime is advancing its 60,000 m exploration drilling program at Los Reyes in 2023. The company is drilling the highly prospective Guadalupe, Z-T and Central zones in order to expand known resources in these areas and is further exploring newly developing resource areas. Prime has approximately $45.5-million in its treasury (as reported in Q1 2023 financial results news release) and remains prudent in exploration expenditures by utilizing a success-based approach to the drill program planning. 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.

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 m 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.

Advisory payment

The company also announces that, subject to approval of the TSX Venture Exchange, it will issue 63,025 units at a deemed price of $1.785 per advisory unit, to an arm's-length adviser, in payment of a fee of $112,500 owing in connection with a services agreement renewed by the company on June 8, 2022. Each advisory unit consists of one common share and one share purchase warrant exercisable at a price of $2.52 until June 8, 2026. The advisory units are subject to a statutory hold period in accordance with applicable Canadian securities law for a period of four months and one day following issuance.

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 size (47.6 mm) 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, reverse circulation 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 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 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-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 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 persons

Mr. Sims, CPG, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical content in this news release pertaining to the MRE.

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 pertaining to the exploration results.

Additional notes

Prime's mineral resource estimate as of May 2, 2023, is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards for mineral resources and mineral reserves adopted by the CIM council and in accordance with the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mineral resources are not reserves and do not have demonstrated economic viability.

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 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.