Mr. Daniel Kunz reports

PRIME ANNOUNCES MORE HIGH-GRADE DRILLING RESULTS FROM THE Z-T AREA AT LOS REYES

Prime Mining Corp. has released expansion drilling results from the company's Los Reyes project, located in Sinaloa state, Mexico. These results come from the Z-T area and are not included in the company's May 2, 2023, mineral resource estimate (MRE).

Prime Mining chief executive officer Daniel Kunz commented: "The drill results released today continue to extend the high-grade plunge at the southeast end of the Z-T area, known as Tahonitas. Today's results, along with previously released holes in this area, have extended mineralization approximately 250 metres down dip from the May, 2023, resource pits. We are excited by how the mineralization in this area is developing and continue to drill Z-T as part of our success-based drill program."

Scott Smith, executive vice-president of exploration, added: "The exploration team is working diligently to execute on our strategic drilling plan with six drills currently operating. Today's release reflects a portion of the Tahonitas drilling in progress, as we continue to process and receive drilling results from Z-T in addition to other expansion and generative areas."

Expansion drilling highlights in the Z-T area

Tahonitas

The company is reporting nine core holes in the Tahonitas area that include the following highlights:

• 2.49 grams per tonne gold equivalent (2.11 g/t Au and 29.3 g/t Ag) over 20.1 metres estimated true width (ETW) in hole 23TA-79, including:
  • 6.30 g/t AuEq (5.74 g/t Au and 42.9 g/t Ag) over 6.3 m ETW.
• Two g/t AuEq (1.06 g/t Au and 72.6 g/t Ag) over 5.5 m ETW in hole 23TA-80, including:
  • 3.59 g/t AuEq (2.57 g/t Au and 78.5 g/t Ag) over 1.8 m ETW.
• 1.14 g/t AuEq (1.04 g/t Au and 7.7 g/t Ag) over 4.45 m ETW in hole 23TA-73, including:
  • 3.51 g/t AuEq (3.26 g/t Au and 19.6 g/t Ag) over one m ETW.

The nine Tahonitas drill holes summarized in this news release intersected high grades at meaningful widths, continuing to build on the mineralized envelope discussed in the company's Sept. 12, 2023, news release. The exploration team is targeting specific areas of these growing high-grade shoots to add resources within the Z-T area pit-constrained shapes.

Tahonitas continues to demonstrate higher silver grades compared with other zones within the Z-T area. These higher silver grades have the potential to increase the overall AuEq grades and gold-silver ounces in these areas.

High-grade plunging shoots are still open at depth and along strike in multiple areas along the Z-T area and will continue to be a focus of resource expansion drilling for the remainder of the year.

With the end of the rainy season last month, the exploration team has added an additional two drill rigs. Six drill rigs are now turning at Los Reyes, focusing on:

1. Extending the high-grade Z-T area shoots that remain open at depth, as well as along strike north and south;
2. Expanding the two other MRE resource areas, including the eastern extensions of the Guadalupe system;
3. Exploring the new generative targets, which include Las Primas, Mariposa and a return to Mina 21.

Prime has completed over 48,000 m of its planned 60,000 m 2023 drill program and will continue to evaluate its drilling plans using its success-based approach.

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 (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, the core is cut 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, 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-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 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 ISO/IEC accredited assay laboratories.

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. Since acquiring Los Reyes in 2019, Prime has spent approximately $32-million (U.S.) on direct exploration activities and has completed over 158,000 m of drilling. On May 2, 2023, Prime announced an updated multimillion-ounce high-grade open-pit-constrained resource (see May 2, 2023, press release for more details).

May 2, 2023, pit-constrained 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. Prime is targeting a material resource expansion at Los Reyes through a combination of new generative area discoveries and growth, while also building on technical derisking activities to support eventual project development.

We seek Safe Harbor.