Prime Mining Corp. (TSX-V: PRYM) (OTCQX: PRMNF) (Frankfurt: 04V3) reported new results from core drilling at the Z-T Area, one of three main zones hosting a gold-silver mineral resource estimate announced May 2, 2023 at the Company’s Los Reyes project located in Sinaloa State, Mexico. Prime’s recently announced MRE contains 1,470,000 Indicated AuEq¹ ounces at a 1.68 gpt average grade and 730,000 Inferred AuEq ounces at 1.26 gpt average grade (see May 2, 2023 news release and below for additional details). Results reported today are from fourteen new core holes drilled at the southeast end of the Z-T Area (see Figure 1) and are all outside of the recently announced resource pit shell from the Z-T Area. This drilling confirms the potential ongoing expansion of gold-silver resources in addition to and not included in the Company’s MRE. This drilling follows similar Z-T results released January 11, 2023.

Highlights

Tahonitas

• 3.33 gpt Au and 220.9 gpt Ag, or 6.19 gpt AuEq over 12.0 m (11.6 m estimated true width or “etw”), including 24.0 gpt Au and 1,385.0 gpt Ag (41.92 gpt AuEq) over 1.0 m (1.0 m etw) in hole 23TA-64;
• 1.52 gpt Au and 24.8 gpt Ag (1.84 gpt AuEq) over 10.0 m (9.8 m etw) including 7.94 gpt Au and 61.4 gpt Ag (8.73 gpt AuEq) over 1.5 m (1.5 m etw) in hole 23TA-57;
• 1.03 gpt Au and 34.5 gpt Ag (1.48 gpt AuEq) over 5.3 m (4.5 m etw) including 2.69 gpt Au and 52.5 gpt Ag (3.37 gpt AuEq) over 1.3 m (1.1 m etw) in hole 23TA-60;

Zapote South

• 0.96 gpt Au and 27.3 gpt Ag (1.31 gpt AuEq) over 19.5 m (13.8 m etw) and 0.84 gpt Au and 14.4 gpt Ag (1.02 gpt AuEq) over 12.0 m (8.5 m etw) in hole 23ZAP-98;
• 0.74 gpt Au and 36.9 gpt Ag (1.22 gpt AuEq) over 16.5 m (15.9 m etw) including 2.72 gpt Au and 155.4 gpt Ag (4.73 gpt AuEq) over 1.5 m (1.4 m etw) in hole 23ZAP-95A;
• 1.01 gpt Au and 23.3 gpt Ag (1.31 gpt AuEq) over 12.0 m (8.5 m etw) and 0.79 gpt Au and 22.8 gpt Ag (1.09 gpt AuEq) over 4.2 m (3.0 m etw) in hole 23ZAP-99.

Prime Mining Corp. Chief Executive Officer Daniel Kunz commented, “These results are from step out drill holes designed to test for and expand mineralization at depth below the Z-T resource pit shell. The width and grades of the drilling results released today continue to identify new potential mill feed extending the mineralization up to 100 m vertically below the recently reported resource pit bottom and spanning a 500 m strike length. We also expanded an exceptional silver-rich, high grade ore chute in hole 23TA-64 at Tahonitas that is unique in the Z-T Area.”

Scott Smith, EVP Exploration added: “At Z-T we continue to discover wide areas of potential ore well above the cutoff grade, outside of the most recently announced resource pit shells. The stepout drilling is already expanding the mineralized envelope beyond the latest resource pits in a number of areas and directions. At Zapote South, mineralization was intersected 170 m down dip of the latest resource pit. The results from each of the 14 holes display thicknesses and grades consistent with the latest resource. The deposits remain open down dip and along strike.”

Drilling results released today demonstrate the potential at Los Reyes for continued resource expansion.

Figure 1: Los Reyes Drilling Update

Figure 2: Z-T Drilling Update

Figure 3: Z-T Long Section

Table 1: Significant intercepts from recent drilling at Z-T

Figure 4: Tahonitas Cross-Section

Figure 5: Zapote Cross-Section

Link 1 – PDF Figures

Link 2 – PDF Drill Hole Tables

Note 1: Gold equivalent grades are calculated based on an assumed gold price of $US 1700 per ounce and silver price of $22 per ounce, based on the formula AuEq grade (gpt) = Au grade + Ag grade x 0.0129. Metallurgical recoveries are not considered in the in-situ grade estimate, but are estimated to be 93% and 83% for gold and silver, respectively, when processed in a mill, and 72% and 25% respectively when heap-leached.

QA/QC Protocols and Sampling Procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetre “mm”), reducing to NQ or BQ size ranges (47.6 mm and 36.5 mm respectively) 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 2 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% 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 re-analysis, completed at their respective Hermosillo, Mexico laboratories and multi-element analysis completed in North Vancouver, Canada. Drill core sample preparation includes fine crushing of the sample to at least 70% passing less than 2 mm, sample splitting using a riffle splitter, and pulverizing a 250-gram split to at least 85% passing 75 microns.

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g sample (code FA430 or Au-AA23). Multi-element chemistry is analyzed by 4-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. Any sample that produces an over-limit 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 over-limit silver values are re-analyzed 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, P.Geo., 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.

Additional Notes

Metres is represented by “m”; “etw” is Estimated True Width and is based on drill hole geometry or comparisons with other on-section drill holes; “Au” refers to gold, and “Ag” refers to silver; “gpt” is grams per metric tonne; some figures may not sum due to rounding; Composite assay grades presented in summary tables are calculated using a Au grade minimum average of 0.20 gpt or 1.0 gpt as indicated in “Au Cut-off” column of Summary Tables. Maximum internal waste included in any reported composite interval is 3.00 m. The 1.00 gpt 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 US$30 million on direct exploration activities and has completed over 120,000 m of drilling. In May, 2023, Prime announced an updated multi-million ounce high-grade open pit resource (see below, and refer to Note 1 and the May 2, 2023 press release for more details).

May 2, 2023 Resource Statement

Drilling is on-going 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 1 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 US$20 million on exploration, engineering, and prefeasibility studies.

About Prime Mining

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.