Mr. Scott Hicks reports

PRIME MINING 2023 FINANCIAL AND OPERATING RESULTS

Prime Mining Corp. has released its operating and financial results for the full year ended Dec. 31, 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.

Prime Mining chief executive officer Scott Hicks commented: "Two thousand twenty-three was a year of transformation for Prime, setting the stage for our 2024 drilling and technical programs, which include 40,000 metres of drilling. As we continue to explore Los Reyes and expand our technical understanding of the project, we remain dedicated to sustainable growth and project advancement. Thank you to our team and local communities for their ongoing support and efforts in advancing Los Reyes."

Corporate highlights during the quarter:

• On Nov. 29, Prime Mining announced that the company would begin trading on the Toronto Stock Exchange on Dec. 5, 2023, following its graduation from the TSX Venture Exchange, with its trading symbol remaining unchanged as PRYM.
• On Dec. 5, Prime Mining advised that trading in its common shares was halted at the open of markets as the TSX-V delisting was not completed concurrently by the TSX-V, resulting in a trading halt, with trading on the TSX expected to begin at the open of markets on Dec. 6, 2023.
• On Dec. 6, Prime Mining announced that trading in its common shares has commenced on the Toronto Stock Exchange under the existing ticker symbol PRYM, following Prime Mining's graduation and delisting from the TSX Venture Exchange.

Exploration highlights during the quarter

On Nov. 8, 2023, Prime Mining reported high-grade drilling results from Tahonitas from the Z-T trend at Los Reyes, with highlights:

• 2.49 grams per tonne gold equivalent (2.11 g/t gold and 29.3 g/t silver) over 20.1-metre estimated true width in hole 23TA-79, including:
  • 6.30 g/t AuEq (5.74 g/t Au and 42.9 g/t Ag) over 6.3-metre etw;
• 2.00 g/t AuEq (1.06 g/t Au and 72.6 g/t Ag) over 5.5-metre 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-metre etw;
• 1.14 g/t AuEq (1.04 g/t Au and 7.7 g/t Ag) over 4.45-metre etw in hole 23TA-73, including:
  • 3.51 g/t AuEq (3.26 g/t Au and 19.6 g/t Ag) over 1.0-metre etw.

On Dec. 13, 2023, Prime Mining reported high-grade drilling results from Noche Buena and San Miguel East from the Central trend at Los Reyes, with the following highlights.

Central area -- Noche Buena -- highlights:

• 4.49 g/t AuEq (1.48 g/t Au and 232.6 g/t Ag) over 5.0-metre etw in hole 23NB-51, including:
  • 8.00 g/t AuEq (2.7 g/t Au and 409.4 g/t Ag) over 2.6-metre etw;
  • 3.51 g/t AuEq (3.36 g/t Au and 11.9 g/t Ag) over 1.2-metre etw;
• 3.81 g/t AuEq (1.62 g/t Au and 169.2 g/t Ag) over 2.6-metre etw in hole 23NB-53, including:
  • 8.21 g/t AuEq (2.77 g/t Au and 420.0 g/t Ag) over 1.0-metre etw;
• 1.23 g/t AuEq (0.45 g/t Au and 60.0 g/t Ag) over 8.4-metre etw in hole 23NB-52, including:
  • 3.25 g/t AuEq (1.25 g/t Au and 154.7 g/t Ag) over 1.6-metre etw.

Central area -- San Miguel East -- highlights:

• 1.33 g/t AuEq (0.55 g/t Au and 60.1 g/t Ag) over 4.4-metre etw in hole 23SME-37, including:
  • 2.65 g/t AuEq (2.03 g/t Au and 48.2 g/t Ag) over 0.7-metre etw;
• 2.23 g/t AuEq (0.99 g/t Au and 95.9 g/t Ag) over 1.4-metre etw in hole 23SME-34.

Mining law ruling

Following a process commenced by the company in July, 2023, a federal judge in Mexico has granted its applications for federal protection, or Amparos, to conduct its activities under the previous (1994) mining-related laws, and is thereby not subject to the 2023 reforms for both Los Reyes project and adjacent El Rey claim once the latter claim is granted.

Critical to the rulings, the granted applications protect Los Reyes project and El Rey claims constitutionally from any further changes to mining-related laws in Mexico. This protection extends to the 2023 mining-related laws, which included reforms to water usage, reclamation considerations, and the scope and term of mining concessions.

As expected and required by law, the government has appealed the rulings. However, the rulings are expected to be upheld given the procedural shortcomings of the 2023 mining law implementation and likelihood that the 2023 reforms will be deemed unconstitutional by the Supreme Court.

Maintaining health and safety protocols

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

It continued to gather environmental and community data in the quarter in support of its environmental, social and governance programs, including completion of a materiality assessment, strategic plan and disclosure matrix. It strives to minimize the environmental footprint of its activities and ensure 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 are summarized from the company's consolidated financial statements and related notes thereto for the three and 12 months ended Dec. 31, 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+.

2024 outlook

Prime Mining 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.

Five 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.

Quality assurance/quality control protocols and sampling procedures

Drill core at Los Reyes project is drilled in predominantly HQ size (63.5 millimetres), reducing to NQ (47.6 mm) when required. Drill core samples are generally 1.50 metres 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-millimetre-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 inserted into the sample sequence and making 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 Labs, with fire assay, including overlimit fire assay reanalysis, completed at its 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 the 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.

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

May 2, 2023, 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 Mining'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 Mining is managed by an ideal mix of successful mining executives, strong capital market personnel and experienced local operators all focused on unlocking the full potential of Los Reyes project. The company has a well-planned capital structure with a strong management team and insider ownership. Prime Mining 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.