Mr. Scott Hicks reports

PRIME ANNOUNCES 2025 OUTLOOK FOR ITS HIGH GRADE GOLD SILVER LOS REYES PROJECT AND DRILLING STATUS UPDATE

Prime Mining Corp. has released its 2025 success-based exploration drilling program and plan to continue with technical derisking of its wholly owned Los Reyes gold-silver project located in Sinaloa state, Mexico. The company also announces that drilling is temporarily suspended due to recent events in the state of Sinaloa but does not anticipate any changes to the outlook detailed below.

2025 Los Reyes project outlook:

• Exploration: Continue success-based approach to drilling in 2025, with an initial program of 40,000 metres to further identify new prospects on the company's vast property. To identify both extensions to known structures and further discovery areas, the company will continue the successful geological mapping and geochemical sampling programs.
• Technical: Work toward a preliminary economic assessment, further refining the metallurgical, geotechnical, mine planning and development parameters for project development, including process and underground mining optimization, infrastructure assessment, and permitting requirements.
• Community engagement: Continue to engage with and support local ejidos (communities) through educational, community and environmental programming, access road improvements, and infrastructure development.

2025 exploration drilling will focus 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, Fresnillo and Mariposa to further grow these emerging resources, as well as other target discovery areas to demonstrate the significant resource expansion potential at Los Reyes.

Drilling status update: Prime has completed approximately 1,500 metres of drilling year to date, prior to the temporary suspension of drilling on Jan. 28, 2025, in response to recent changes in the security situation in parts of Sinaloa, including the Los Reyes area. This suspension is not expected to have an impact on the company's ability to execute the 2025 drill program described, as drill rigs remain on site and drill contractors are on standby to resume drilling as soon as the local security situation improves. The company will continue to work with local authorities to monitor the situation.

Scott Hicks, chief executive officer, commented: "In 2025, we will continue our success-based exploration program with an initial 40,000-metre drill program that targets resource expansion and advances our generative targets as soon as it is practical to do so. We are continuing our multidisciplinary technical and engineering derisking program with the aim of demonstrating the strong potential of the Los Reyes project through a preliminary economic assessment. The current drilling program delay is not anticipated to affect our overall plans, as we have ample drilling capacity to make up lost time. Prime is well funded for our upcoming programs with approximately $19-million in cash, unaudited, as at Dec. 31, 2024, and approximately $19-million of in-the-money warrants and options that we anticipate will fund us through the end of 2025 and well into 2026."

Scott Smith, executive vice-president of exploration, added: "In 2025 we will continue to focus on material, stepout drilling along our main trends as well as looking for additional new discovery areas within our prolific exploration land package. We are also delighted to announce that Prime has been selected to participate in the prestigious 'Core Shack' at the annual Prospectors & Developers Association of Canada conference in Toronto in early March. We look forward to greeting you at booth 3110A on the Sunday and Monday, while providing a great opportunity to learn more about the Los Reyes project directly from our team."

Prime will continue to evaluate drilling plans using its success-based approach. This evaluation will 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 high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa state, Mexico. On Oct. 15, 2024, Prime announced an updated multimillion-ounce high-grade open pit and underground resource based on exploration drilling up to July 17, 2024. Since acquiring Los Reyes in 2019, Prime has spent more than $62-million on direct exploration activities and has completed over 220,000 metres of drilling.

Drilling and geological interpretation 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.

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), 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 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 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 over limits 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 micrometres.

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g 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 ppm (parts per million). 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 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.