Mr. Scott Hicks reports

PRIME INTERSECTS 9.4 GPT GOLD EQUIVALENT OVER 10.5 METRES AT TAHONITAS IN THE Z-T TREND

Prime Mining Corp. has released the expansion drilling results from the company's Los Reyes project, located in Sinaloa state, Mexico. These results are from 2024 drilling at the Z-T trend and are not included in the company's May 2, 2023, mineral resource estimate (MRE).

Expansion drilling highlights at Z-T

The company is reporting 11 core holes at Tahonitas in the Z-T trend, with the following highlights:

• 9.39 grams per tonne (gpt) gold equivalent (AuEq) (2.63 gpt gold (Au) and 522.1 gpt silver (Ag)) over 10.5 metres (m) (estimated true width (ETW)) in hole 24TA-139, including:
  • 10.29 gpt AuEq (2.89 gpt Au and 572.0 gpt Ag) over 8.0 m (ETW);
• 4.55 gpt AuEq (2.87 gpt Au and 130.0 gpt Ag) over 4.1 m (ETW) in hole 24TA-138, including:
  • 8.06 gpt AuEq (5.23 gpt Au and 218.3 gpt Ag) over 2.1 m (ETW);
• 3.56 gpt AuEq (2.92 gpt Au and 49.2 gpt Ag) over 4.6 m (ETW) in hole 24TA-138, including:
  • 5.57 gpt AuEq (4.84 gpt Au and 56.8 gpt Ag) over 2.7 m (ETW);
• 2.95 gpt AuEq (2.88 gpt Au and 5.5 gpt Ag) over 4.1 m (ETW) in hole 24TA-135, including:
  • 13.21 gpt AuEq (12.95 gpt Au and 20.3 gpt Ag) over 0.7 m (ETW);
• 4.24 gpt AuEq (4.08 gpt Au and 12.2 gpt Ag) over 2.3 m (ETW) in hole 24TA-135, including:
  • 13.92 gpt AuEq (13.40 gpt Au and 40.4 gpt Ag) over 0.6 m (ETW).

Prime Mining chief executive officer Scott Hicks commented: "Expansion drilling results at Tahonitas in the Z-T trend have been excellent, demonstrating continuity of very high gold and silver grades downdip and within previous drilling gaps. This can be seen in the highlighted holes, including 24TA-139, where high-grade extensions are supportive of underground potential."

Scott Smith, executive vice-president of exploration, added: "The holes released today include some of the southeasternmost holes we have drilled to date, collared at over 550 m along strike from the southeast Z-T pit crest. These holes intersected mineralization at elevations between 370 m to over 450 m (above sea level). We know that the areas where mineralization occurs in this structure also extend above and below these elevations, which in turn provides great targets to continue to expand Z-T in this direction."

Interpretation

Tahonitas

24TA-138: (1) returned higher Au and Ag grades than estimated in the 2023 MRE block model; (2) was drilled at a more favourable intercept angle than historical drilling in the area; and (3) is within the existing MI&I (measured, indicated and inferred) pit shell. As a result, the company anticipates that this drill hole will have a positive impact on future resource estimates at Z-T by improving both the grade and resource classification in this area.

24TA-139 is the best intercept to date in the newly identified high-grade shoot developing at the southern end of the Z-T trend, returning exceptionally high Au and Ag grades over significant thickness. Further, 24TA-132 and 24TA-136 confirm the existence of this shoot at a distance of more than 500 m from the southeast pit crest, demonstrating the continuity of mineralization along the Z-T structure along strike to the south. The high-grade mineralization defined by 24TA-132, 24TA-136 and 24TA-139 remains open along strike and at depth, and will continue to be a focus for future drilling at Z-T.

24TA-137 returned one of the company's deepest intercepts to date at 200 m above sea level, grading 1.22 gpt AuEq over 4.6 m (ETW). This hole demonstrates that the productive zone remains open at depth and open to the southeast along strike.

The continuing discovery of mineralization hosted along strike and at depth continues to suggest the following:

• The Z-T structure continues to be mineralized for more than 500 m along strike from the current southeast pit crest.
• The potential exists to discover more high-grade plunging shoots with continued drilling below the current resource pit bottom and within the new southeast strike extension. These high-grade shoots have the potential to support underground resource estimation.
• Several high-grade plunging shoots identified to date remain open at depth and along strike in multiple areas along the trend.

2024 outlook

Given the results from Prime's success-based drilling program at midyear, the company approved the expansion of its fiscal 2024 program to 50,000 m from 40,000 m. The drill program will continue to be evaluated according to this success-based approach. This evaluation will also include prioritization of targets based on probability of resource development and generative area discovery potential.

Four 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.

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 $55-million (Canadian) on direct exploration activities and has completed over 198,500 metres of drilling. On May 2, 2023, Prime announced an updated multimillion-ounce high-grade open-pit constrained resource (see the May 2, 2023, news 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.

Historical 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.

QA/QC (quality assurance/quality control) protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetres (mm)), 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. RC 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 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 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 (g) sample (code FA430 or Au-AA23). Multielement chemistry is analyzed by four-acid digestion of a 0.25 g 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 (ppm). 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

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.