Mr. Scott Hicks reports

PRIME INTERSECTS 3.74 GPT AUEQ OVER 5.7M AT Z-T IN NEW HIGH-GRADE MINERALIZED ZONE 350M BEYOND CURRENT RESOURCE PIT WHILE EXTENDING HIGH-GRADE SHOOTS AT DEPTH

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

Expansion drilling highlights in the Z-T area

The company is reporting 21 core holes at Tahonitas with the following highlights:

• 3.59 grams per tonne gold equivalent (3.54 g/t gold and 4.1 g/t silver) over 6.6-metre estimated true width (ETW) in hole 23TA-85, including:
  • 6.21 g/t AuEq (6.17 g/t Au and 2.9 g/t Ag) over 1.4 m ETW;
  • And including 12.35 g/t AuEq (12.10 g/t Au and 19.1 g/t Ag) over 1.0 m ETW;
• 2.09 g/t AuEq (1.26 g/t Au and 63.9 g/t Ag) over 11.6 m ETW in hole 23TA-90, including:
  • 3.83 g/t AuEq (2.61 g/t Au and 94.5 g/t Ag) over 2.2 m ETW;
• 3.74 g/t AuEq (0.99 g/t Au and 212.5 g/t Ag) over 5.7 m ETW in hole 23TA-100, including:
  • 10.94 g/t AuEq (2.97 g/t Au and 616.0 g/t Ag) over 1.3 m ETW;
• 2.33 g/t AuEq (0.83 g/t Au and 115.9 g/t Ag) over 7.1 m ETW in hole 23TA-91, including:
  • 8.14 g/t AuEq (2.85 g/t Au and 409.0 g/t Ag) over 0.9 m ETW;
• 2.21 g/t AuEq (0.69 g/t Au and 117.8 g/t Ag) over 5.0 m ETW in hole 23TA-94;
• 6.39 g/t AuEq (4.51 g/t Au and 145.3 g/t Ag) over 1.2 m ETW in hole 23TA-99.

Prime Mining chief executive officer Scott Hicks commented: "Drilling at the Z-T area has discovered a new high-grade mineralized zone of over 350 m along strike to the southeast of the Tahonitas resource pit and has also extended two separate high-grade plunges in this area by an additional 70 to 80 m down dip. Mineralization here now continues 300 m down dip from the May, 2023, resource pits. We are excited to see the potential of this expansion target evolve."

Scott Smith, executive vice-president of exploration, added: "Today's release reflects the potential for continued discovery of high-grade mineralization at Tahonitas. Additional access for drilling will enable us to further test the high potential of Z-T's open strike to the southeast. Ongoing drilling at Z-T aims to extend the high-grade shoots that remain open at depth as well as following up on the newly discovered mineralization along strike."

Interpretation

The 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, and Nov. 8, 2023, news releases. As 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.

In this release, 23TA-85 is located 85 m down dip of 23TA-71, extending the previously defined high-grade shoot approximately 300 m down dip from the current resource pit bottom at a mid-intercept elevation of approximately 250 m above sea level. An additional high-grade shoot to the southeast has been extended by 23TA-90, located 75 m down dip of 23TA-79 and 240 m down dip from the resource pit bottom at an elevation of approximately 260 m above sea level. This southeastern shoot now has a modelled dip length of high-grade mineralization spanning 575 m and remains open.

The shallow intersections, comprising 23TA-89, 23TA-91, 23TA-94, 23TA-97 and 23TA-100, extend Z-T mineralization to the southeast well beyond the current pit, with the following implications:

1. Shallow early-stage intersections that may support pit expansion to the southeast near surface;
2. Demonstrates that the Tahonitas structure continues to be mineralized for 350 m along strike from the southeast pit crest;
3. The potential to discover more high-grade plunges as the company continues to drill at depth within the new southeast strike extension.

High-grade plunging shoots are still open at depth and along strike in multiple areas along the Z-T area as Prime targets expansion drilling at Z-T in 2024.

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.

Six drill rigs are currently active on site at Los Reyes, with 2024 exploration focused on:

• Extending the high-grade Z-T area shoots that 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.

Note: Gold equivalent grades are calculated based on an assumed gold price of $1,700 (U.S.) per ounce and silver price of $22 (U.S.) per ounce, based on the formula AuEq grade (g/t) equals Au grade plus Ag grade multiplied by ($22 (U.S.) divided by $1,700 (U.S.)). Metallurgical recoveries are not considered in the in situ grade estimate but are estimated to be 93 per cent and 83 per cent for gold and silver, respectively, when processed in a mill, and 72 per cent and 25 per cent, respectively, when heap leached.

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, the core is cut and one-half is submitted for assay. RC (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 its facilities in Durango or Hermosillo, Mexico, for sample preparation. Sample analysis is carried out by Bureau Veritas and ALS, with fire assay, including overlimit 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 through 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 are ISO/IEC accredited assay laboratories.

Additional notes

Estimated true width (ETW) is based on drill hole geometry or comparisons with other on-section drill holes. Some figures may not sum due to rounding. Composite assay grades presented in summary tables are calculated using a gold-grade minimum average of 0.20 g/t or 1.0 g/t as indicated in the Au cut-off column of summary tables. Maximum internal waste included in any reported composite interval is 3.00 m. The 1.00 g/t Au cut-off is used to define higher-grade cores within the lower-grade halo.

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.

We seek Safe Harbor.