Mr. Daniel Kunz reports

PRIME MINING ANNOUNCES GRANT OF INCENTIVE SECURITIES

Prime Mining Corp. has granted a total of 991,626 incentive stock options, 455,846 restricted share units and 661,202 deferred share units in accordance with the long-term incentive plan adopted by the company.

The options were granted to management of the company and are exercisable at the price of $1.83 per share. The options will vest and become exercisable over a three-year period, with one-third vesting on the first-year anniversary of the grant, one-third on the second-year anniversary and one-third on the third-year anniversary.

The RSUs were granted to the management of the company, with each RSU equivalent to one common share or, at the corporation's option, a cash payment equal to the fair market value (as defined in the plan) of such common share (with the additional option of receiving any combination of cash and common shares). The RSUs will vest over a three-year period, with one-third vesting on the first-year anniversary of the grant, one-third on the second-year anniversary and one-third on the third-year anniversary. Settlement will occur at the end of the third year.

The DSUs were granted to the board of directors and will vest after 12 months or upon the adoption of a revised long-term incentive plan that permits earlier vesting. Settlement will occur when a director resigns from or ceases to be a member of the board or in connection with a change of control and is payable in either cash or common shares at the discretion of the board of directors on the settlement date.

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 $48-million on direct exploration activities and has completed over 168,000 metres of drilling. On May 2, 2023, Prime announced an updated multimillion-ounce, high-grade, open-pit-constrained resource (see the attached table and refer to the May 2, 2023, press release for more details).

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.

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 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.

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