Mr. Daniel Kunz reports

PRIME MINING REPORTS SECOND QUARTER 2023 FINANCIAL AND OPERATING RESULTS

Prime Mining Corp. has released its operating and financial results for the quarter ended June 30, 2023. Prime Mining is focused on the exploration and development of its wholly owned high-grade Los Reyes gold-silver project in Sinaloa state, Mexico.

The company also announces a change to its board of directors: Effective Aug. 16, 2023, Kerry Sparkes is appointed to the board of directors, replacing Paul Larkin, who has stepped down. Mr. Sparkes is a technical adviser to Prime Mining, with over 30 years experience in mineral exploration as an exploration geologist and mining executive. He was past vice-president, geology, for Franco-Nevada Corp., where he was responsible for evaluating global mineral deposits, and co-founder and director of Orla Mining Ltd. Mr. Sparkes is a registered professional geologist and a qualified person.

Prime Mining chief executive officer Daniel Kunz commented: "We thank Paul Larkin for his many contributions to the company and wish him the best in his future endeavours. We have already benefited tremendously from Kerry Sparkes's significant geology and project experience, and continue to look forward to his additional involvement as a member of our board of directors. Prime concluded a very productive second quarter 2023. We materially increased our cash balance, which currently stands at $41-million, published a new 2023 Los Reyes mineral resource estimate, initiated Prime's annual [environmental, social and governance] sustainability reporting, and welcomed a new member to our senior management team. At Los Reyes, drilling encountered wide and high-grade intercepts in Z-T and Central zones resource areas. We are drilling in areas that can increase the current resource size and quality through discovery of adjacent and new zones of gold-silver mineralization. We have already completed more than 37,000 metres of our drilling in 2023. Work is also ongoing in several technical areas, including metallurgical testwork."

Corporate highlights during the quarter

On April 17, the company released its inaugural 2022 ESG sustainability report.

On May 9, the company received $28-million from an acceleration of 14,025,410 common share purchase warrants that were issued as part of the Dec. 22, 2022, financing.

On May 11, the company announced the appointment of Indi Gopinathan as vice-president of capital markets and business development, effective April 24, 2023.

On June 13, the company announced the issuance of 63,025 units at a deemed price of $1.785 per unit to an arm's-length adviser in payment of services.

On June 13, the company filed its National Instrument 43-101 technical report for Los Reyes gold-silver project.

Exploration highlights during the quarter

On May 2, the company announced the doubling of the resource at Los Reyes gold-silver project.

At the resource gold cut-off grade of 0.22 gram per tonne, Prime Mining's updated open-pit mineral resource estimate contains:

• 1.47 million indicated gold equivalent 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 1.0 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.

On May 24, the company reported multiple new, wide, high-grade intercepts in the Z-T area, including bonanza-grade intervals. Highlight intercepts include:

• 6.19 g/t AuEq (3.33 g/t gold and 220.9 g/t silver) over 11.6-metre estimated true width (etw), including 41.92 g/t AuEq (24.9 g/t Au and 1,385.0 g/t Ag) over 1.0-metre etw;
• 1.84 g/t AuEq (1.52 g/t Au and 24.8 g/t Ag ) over 9.8-metre etw, including 8.73 g/t AuEq (7.94 g/t Au and 61.4 g/t Ag) over 1.5-metre etw;
• 1.31 g/t AuEq (0.96 g/t Au and 27.3 g/t Ag) over 13.8-metre etw, and 1.02 g/t AuEq (0.84 g/t Au and 14.4 g/t Ag) over 8.5-metre etw;
• 1.22 g/t AuEq (0.74 g/t Au and 36.9 g/t Ag) over 15.9-metre etw, including 4.73 g/t AuEq (2.72 g/t Au and 155.4 g/t Ag) over 1.4-metre etw.

On June 20, the company announced the discovery of new wide zones of high-grade mineralization in the Z-T area significantly below resource pit bottom.

Highlight intercepts include:

• 5.10 g/t AuEq (3.96 g/t Au and 88.0 g/t Ag) over 11.4-metre etw in hole 23TA-67, located 200 m below the MRE resource pit, including:
  • 27.20 g/t AuEq (24.50 g/t Au and 209.0 g/t Ag) over 1.5-metre etw;
• 4.86 g/t AuEq (3.80 g/t Au and 82.0 g/t Ag) over 13.3-metre etw in hole 23TA-69, located 100 m below the MRE resource pit, including:
  • 9.30 g/t AuEq (8.15 g/t Au and 89.2 g/t Ag) over 3.7-metre etw.

Maintaining health and safety protocols

The company has avoided possible health issues that may have had a material effect on the company's activities. Prime Mining remains engaged with local stakeholders, and is pro-active in monitoring employees and contractors concerning general health conditions. The company continues to closely adhere to the directives of all levels of government and relevant health authorities in Mexico and Canada.

Community engagement and environmental stewardship strategy

The company continued to gather environmental and community data in the quarter to help support its ESG programs, including completion of a materiality assessment, strategic plan and disclosure matrix. It strives to minimize the environmental footprint of its activities and ensures that Los Reyes has a positive impact on its host communities.

The company released its initial sustainability report during April, 2023, which establishes a baseline and a new yardstick to measure its progress in meeting its commitments regarding sustainability and stewardship of the environment, relevant social issues, and corporate governance.

Selected financial data

The attached selected financial data is summarized from the company's consolidated financial statements and related notes thereto for the three and six months ended June 30, 2023, and 2022. A copy of the financial statements and management's discussion and analysis is available at the Prime Mining website or on SEDAR+.

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 Prime Mining Corp.

Prime Mining is an ideal mix of successful mining executives, strong capital market 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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