Mr. Daniel Kunz reports

PRIME ANNOUNCES 2024 OUTLOOK FOR ITS HIGH-GRADE LOS REYES GOLD-SILVER PROJECT

In 2024, Prime Mining Corp. plans to undertake a 40,000-metre exploration drilling program and further technical investigation of its wholly owned high-grade Los Reyes gold-silver project in Sinaloa state, Mexico.

2024 Los Reyes project outlook:

• Exploration -- continue success-based approach to drilling in 2024, targeting completion of 40,000 metres; additional work will include geological mapping and geochemical sampling;
• Technical -- continue preliminary investigations of metallurgical, geotechnical and mine planning parameters, including process optimization, assessment of open-pit versus underground opportunities and evaluation of permitting requirements;
• Community engagement -- continue to engage with local ejidos (communities) through educational and community programming, access (road) improvements and water access;
• Los Reyes resource update -- target a late 2024 resource increase, subject to drilling results from full-year 2023 and continuing 2024.

Exploration drilling in 2024 will focus on:

• Extending the high-grade Z-T area shoots, which remain open at depth as well as along strike, both north and south;
• Expanding the known high-grade mineralization at Guadalupe East;
• Increasing the Central area resource through additions at Noche Buena and its connection to San Miguel East;
• Generative target drilling of high-grade intercepts at Las Primas, Mariposa, Fresnillo, Mina and others to further develop the resource potential at Los Reyes.

Scott Hicks, executive vice-president, commented: "We begin the new year with approximately $32.8-million in cash. In 2024, our aim is to further illustrate the immense potential of the Los Reyes property through an initial, fully funded 40,000 metres drilling campaign targeting resource expansion and proving up several key generative targets. We will continue to engage with our stakeholders at the corporate and community levels and maintain the highest levels of performance in health, safety and environmental stewardship. Technical work will continue to advance our understanding of the project, along with permit planning."

Daniel Kunz, retiring chief executive officer, added: "Prime has already started the year off with an exciting set of drill results from Los Reyes. I predict another standout year in 2024 given Prime's strong financial position, its people and platform for future growth under Scott's leadership."

Prime is targeting 40,000 metres in its 2024 drill program and will continue to evaluate drilling plans using its success-based approach. This evaluation will also include prioritization of targets based on probability of resource development and generative area discovery potential.

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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