Prime Mining Corp. (TSX-V: PRYM) (OTCQX: PRMNF) (Frankfurt: O4V3) is pleased to report its operating and financial results for the quarter ended June 30, 2023. Prime is focused on the exploration and development of its wholly owned high-grade Los Reyes Gold-Silver Project in Sinaloa State, Mexico .

The Company also announces a change to its board of directors: effective August 16, 2023, Mr. Kerry Sparkes is appointed to the board of directors, replacing Mr. Paul Larkin who has stepped down. Mr. Sparkes is a Technical Advisor to Prime, with over 30 years’ experience in mineral exploration as an exploration geologist and mining executive. He was past Vice President Geology for Franco-Nevada Corporation, where he was responsible for evaluating global mineral deposits, and co-founder and director of Orla Mining Ltd. Mr. Sparkes is a registered professional geologist and Qualified Person.

Prime Chief Executive Officer Daniel Kunz commented, “We thank Paul Larkin for his many contributions to the Company and wish him the best in his future endeavours. We have already benefitted tremendously from Kerry Sparkes’ significant geology and project experience, and continue to look forward to his additional involvement as a member of our Board of Directors.   Prime concluded a very productive second quarter 2023. We materially increased our cash balance which currently stands at $41 million, published a new 2023 Los Reyes Mineral Resource Estimate, initiated Prime’s annual ESG sustainability reporting, and welcomed a new member to our senior management team. At Los Reyes, drilling encountered wide and high-grade intercepts in Z-T and Central Zones resource areas. We are drilling in areas that can increase the current resource size and quality through discovery of adjacent and new zones of gold-silver mineralization. We have already completed more than 37,000 metres of our drilling in 2023. Work is also ongoing in several technical areas including metallurgical test work.”

Corporate Highlights During the Quarter
(Unless otherwise stated, all amounts are presented in Canadian dollars.)

On April 17^th, the Company released its inaugural 2022 ESG Sustainability Report.

On May 9^th, the Company received $28 million from an acceleration of 14,025,410 common share purchase warrants that were issued as part of the December 22, 2022 financing.

On May 11^th, the Company announced the appointment of Indi Gopinathan as Vice President of Capital Markets and Business Development, effective April 24, 2023.

On June 13^th, the Company announced the issuance of 63,025 units at a deemed price of $1.785 per unit to an arms-length advisor in payment of services.

On June 13^th, the Company filed its NI 43-101 Technical Report for the Los Reyes gold-silver project.

Exploration Highlights During the Quarter

On May 2^nd, the Company announced the doubling of the resource at the Los Reyes gold-silver project.

At the resource gold cut-off grade of 0.22 grams per tonne (“gpt”), Prime’s updated open pit Mineral Resource Estimate¹ contains:

• 1.47 million Indicated AuEq² ounces at a 1.68 gpt average grade. This represents a 73% increase in Measured and Indicated AuEq ounces, and 26% increase in AuEq grade. This is 1.0 million ounces of gold at 1.16 gpt and 35 million ounces of silver at 40.4 gpt.
• 0.73 million Inferred AuEq ounces at a 1.26 gpt average grade. This represents a 175% increase in AuEq ounces and 8% increase in AuEq grade. This is 0.5 million ounces of gold at 0.85 gpt and 18.4 million ounces of silver at 31.5 gpt.

On May 24^th, the Company reported multiple new wide, high-grade intercepts in the Z-T area, including bonanza-grade intervals.

Highlight intercepts include:

• 6.19 gpt AuEq (3.33 gpt Au and 220.9 gpt Ag) over 11.6 m estimated true width (“etw”), including 41.92 gpt AuEq (24.9 gpt Au and 1,385.0 gpt Ag) over 1.0 m etw;
• 1.84 gpt AuEq (1.52 gpt Au and 24.8 gpt Ag ) over 9.8 m etw, including 8.73 gpt AuEq (7.94 gpt Au and 61.4 gpt Ag) over 1.5 m etw;
• 1.31 gpt AuEq (0.96 gpt Au and 27.3 gpt Ag) over 13.8 m etw, and 1.02 gpt AuEq (0.84 gpt Au and 14.4 gpt Ag) over 8.5 m etw;
• 1.22 gpt AuEq (0.74 gpt Au and 36.9 gpt Ag) over 15.9 m etw, including 4.73 gpt AuEq (2.72 gpt Au and 155.4 gpt Ag) over 1.4 m etw.

On June 20^th, the Company announced the discovery of new wide zones of high-grade mineralization in the Z-T area significantly below resource pit bottom.

Highlight intercepts include:

• 5.10 gpt AuEq (3.96 gpt Au and 88.0 gpt Ag) over 11.4 m etw in hole 23TA-67, located 200 m below the MRE resource pit, including:
  • 27.20 gpt AuEq (24.50 gpt Au and 209.0 gpt Ag) over 1.5 m etw.
• 4.86 gpt AuEq (3.80 gpt Au and 82.0 gpt Ag) over 13.3 m etw in hole 23TA-69, located 100 m below the MRE resource pit, including:
  • 9.30 gpt AuEq (8.15 gpt Au and 89.2 gpt Ag) over 3.7 m etw.

Maintaining Health and Safety Protocols

The Company has avoided possible health issues that may have had a material effect on the Company’s activities. Prime remains engaged with local stakeholders and is proactive 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

We continued to gather environmental and community data in the quarter to help support our ESG programs, including completion of a materiality assessment, strategic plan, and disclosure matrix. We strive to minimize the environmental footprint of our activities and ensure that Los Reyes has a positive impact on our host communities.

The Company released its initial sustainability report during April 2023 which establishes a baseline and a new yardstick to measure our progress in meeting our commitments regarding sustainability and stewardship of the environment, relevant social issues, and corporate governance.

Selected Financial Data

The following selected financial data is summarized from the Company’s consolidated financial statements and related notes thereto  for the three and six months ended June 30, 2023 and 2022. A copy of the Financial Statements and MD&A is available at www.primeminingcorp.ca or on SEDAR at www.sedar.com.

Notes

1. Mineral Resource Estimate is based on economically constrained pits using a $US 1700/ounce gold price, $US 22/ounce silver price, and an assumed 0.22 gpt gold cutoff grade. For more information and other assumptions, please see Prime’s May 2, 2022 press release, or our website.
2. Gold equivalent grades are calculated as in-situ contained grades, applying the assumed ratio of gold to silver prices using the following formula: AuEq grade (gpt) = Gold grade (gpt) + Silver grade (gpt) x ($US 22 / $US 1700). Relative recoveries are not considered in the in-situ contained grade estimate but are assumed to have mill recoveries of 93% and 83% for gold and silver, respectively and heap leach recoveries of 73% and 25% for gold and silver, respectively. For more information and other assumptions, please see Prime’s May 2, 2022 press release, or our website.

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.

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. 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. The Project remains underexplored and holds potential for additional discovery and resource expansion.

Since acquiring Los Reyes in 2019, Prime has spent approximately US$30 million on direct exploration activities and has completed two phases of comprehensive drilling totaling over 110,000 m. Results to date suggest the three known main deposit areas, Guadalupe, Central and Z-T are much larger than previously reported. Potential exists for new discoveries outside of the current defined resource areas.

About Prime Mining

Prime Mining is an ideal mix of successful mining executives, strong capital markets personnel, and experienced local operators focused on unlocking the full potential of the high-grade Los Reyes Gold-Silver Project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.