Mr. Ernest Mast reports

PRIMERO REPORTS PRELIMINARY Q1 2016 PRODUCTION RESULTS; QUARTER FOCUSED ON CREATING A WORKPLACE FREE OF ACCIDENTS

Primero Mining Corp. has released its preliminary first quarter 2016 operating results. The company's first quarter 2016 financial results will be released on May 4, 2016.

Highlights:

• Creating and sustaining a safety-first culture: Primero's highest priority is the safety of its workers. After unacceptable safety results in 2015 at San Dimas's underground operations, Primero has been determined to transform the mine's safety culture. Through Q1 2016, Primero has focused on implementing stringent new safety standards and procedures, which include the implementation of standards for ground support in line with the Ontario mining regulations -- a process that has not previously been applied at the San Dimas mine.
• First quarter 2016 production: First quarter 2016 production totalled 36,158 gold-equivalent ounces(1), at preliminary all-in sustaining costs of $1,556 per gold ounce(2). Q1 production included 22,901 gold-equivalent ounces from San Dimas and 13,257 ounces of gold from Black Fox. Quarterly production was impacted by changes to the mining sequence at San Dimas to include the implementation of Canadian safety standards for ground support, which resulted in the deferral of some high-grade stopes. Black Fox production was affected by the limited availability of high-grade ore from the upper, remnant areas of the underground mine.
• Production and cost guidance updated for 2016: The Q1 2016 production shortfall that was a result of implementing enhanced safety procedures at San Dimas has resulted in Primero reducing its 2016 production guidance to between 230,000 and 250,000 gold-equivalent ounces. All-in sustaining cost guidance is now expected to be between $975 and $1,025 per gold ounce.

"Primero invested a significant amount of time and resources during the first quarter to create a transformational shift in attitude towards achieving a workplace free of accidents. The safe operation of our two mines is our top priority and while we are encouraged to see a transformation, we know we must remain vigilant," stated Ernest Mast, president and chief executive officer. "Although production was well below our original expectations during this implementation period, we are committed to getting our operations up to full capacity as quickly as possible. We have a strong operational plan at San Dimas to deliver planned throughput rates with the more stringent ground control conditions for the remainder of 2016. During April, the mine has operated at production rates greater than the nameplate 2,500 tonnes per day. We also continue to believe in the future of the Black Fox mine, having recently reached the Deep Central zone mineralization on the 640-metre level. Primero's team has demonstrated dedication to our core values during this difficult and demanding time for the company, and I look forward to delivering positive news flow through the remainder of 2016."

Creating and sustaining a safety-first culture

Primero is firmly committed to the safety of its employees and has been working hard to affect a transformational shift in attitude toward a safety culture that supports the maintenance of a workplace free of accidents. This has included the implementation of a strict policy that no person should be advancing any face under unsupported ground.

To this effect, San Dimas personnel have completed the immense task of retrofitting all active areas of the mine with standards for ground support in line with the Ontario mining regulations, a practice previously assessed as unnecessary due to the generally excellent rock conditions of the mine. This has required the restriction of access to certain portions of the mine and provisions for new access points to specific areas, significantly impacting the first quarter mine plan. Management reports that this comprehensive and intense implementation phase is now complete and the mine is capable of operating at planned capacity for the remainder of 2016.

Additionally, Primero's safety department has revised the San Dimas rules for life, nine critical standards and operating procedures that apply to all San Dimas employees. The updated code includes increased requirements for working under supported areas.

Company-wide safety communication has improved, and operating risks are being identified and addressed earlier to avoid potential accidents. Primero has encouraged greater interaction with mining crews in the morning safety and co-ordination talks, and has observed a noted increase in potential incident reporting resulting in a more pro-active safety environment. As a result of the company's efforts, San Dimas has gone more than three months with zero reportable incidents, and all employees are responding positively to the call for a change in attitude toward safety.

First quarter 2016 production

Primero produced 36,158 gold-equivalent ounces during the first quarter of 2016, 41 per cent below the same period in 2015, mainly as a result of the introduction of Canadian standards for ground support at the San Dimas mine. Preliminary all-in sustaining costs for the quarter are expected to be $1,556 per gold ounce and total cash costs of $944 per gold-equivalent ounce.

                   FIRST QUARTER 2016 PRODUCTION

                                     Three months ended March 31,
                                              2016          2015
Total production
Gold-equivalent (oz)                        36,158        61,073
Gold (oz)                                   32,835        54,365
Silver (Moz)                                  0.92          1.93
Total cash costs (per oz AuEq)                $944          $699
AISC (per oz Au)                            $1,556        $1,044
San Dimas
Tonnage
Tonnes of ore mined                        151,193       263,747
Tonnes of ore milled                       149,182       257,670
Tonnes of ore milled per day                 1,639         2,863
Average mill head grade (g/t)
Gold                                          4.13          5.01
Silver                                         198           250
Average recovery rate (%)
Gold                                           99%           96%
Silver                                         97%           93%
Produced
Gold-equivalent (oz)                        22,901        46,569
Gold (oz)                                   19,578        39,861
Silver (Moz)                                  0.92          1.93
Total cash costs (per oz AuEq)                $998          $582
AISC (per oz Au)                            $1,362          $659
Black Fox
Open-pit tonnes
Tonnes of ore mined                              -       275,865
Average gold grade (g/t)                         -          1.99
Underground tonnes
Tonnes of ore mined                         38,501        11,525
Average gold grade (g/t)                      4.99          4.84
Tonnes increase (decrease) in
stockpile                                 (185,952)       96,471
Tonnes processed
Tonnes of ore milled                       224,453       190,919
Tonnes of ore milled per day                 2,467         2,121
Average mill head grade (g/t)                 1.94          2.49
Average gold recovery rate (%)                 95%           95%
Produced
Gold (oz)                                   13,257        14,504
Total cash costs (per oz Au)                  $851        $1,077
AISC (per oz Au)                            $1,404        $1,552

San Dimas produced 22,901 gold-equivalent ounces during the first quarter, which include 19,578 ounces of gold and 920,000 ounces of silver. Q1 2016 preliminary AISCs are expected to be $1,362 per gold ounce and total cash costs of $998 per gold-equivalent ounce. First quarter production at San Dimas was impacted by changes to the mining sequence which now includes the implementation of Canadian standards for ground support and the condition that all employees will never work under unsupported ground. As a result, mill throughput was restricted to an average of 1,639 tonnes per day during the quarter.

In April, the company was successful in re-establishing operations above the current 2,500 tpd nameplate capacity. The addition of ground support has resulted in a modified mine plan for the remainder of 2016, with the company targeting higher-grade stopes at slightly lower tonnes. The company will continue to analyze the impact of the removal of low-grade cut-and-fill stopes on its original plan of mining consistently at 3,000 tpd by the end of 2016.

Black Fox produced 13,257 gold ounces during the first quarter at preliminary AISCs of $1,404 per ounce and total cash costs of $851 per ounce. Production was lower than expected as a result of limited availability of high-grade ore from the upper, remnant areas of the underground mine. Daily production rates are expected to increase through the remainder of 2016 as the underground contribution from the Deep Central zone ramps up.

Drifting on the 640-metre level intersected initial ore in Deep Central zone in April, one month ahead of schedule. The company is now working to complete two crosscuts through the zone and has started development of the 660-metre level ahead of initial stoping activities. Production from the Deep Central zone is expected to increase to approximately 850 tpd in fourth quarter 2016.

Production guidance update -- 2016

As described above, the implementation of Canadian standards for ground support at the San Dimas mine has impacted production rates. This has led Primero to reduce 2016 annual production guidance by 30,000 gold-equivalent ounces to between 230,000 and 250,000 gold-equivalent ounces. AISC guidance is now expected to be between $975 and $1,025 per gold ounce and total cash costs are expected to be in the range of $650 to $700 per gold-equivalent ounce. Revised cash cost guidance at Black Fox reflects the inclusion of non-cash inventory drawdown, which was not included in the original guidance. Capital expenditures at San Dimas were also reduced by $5-million, mainly associated with the mill expansion project.

                              UPDATED 2016 GUIDANCE

                                             Original guidance

                                   San Dimas       Black Fox    Consolidated
Attributable gold-equivalent
production (gold-equivalent
ounces)                      190,000-200,000   70,000-80,000 260,000-280,000
Gold production (ounces)     145,000-155,000   70,000-80,000 215,000-235,000
Silver production (million
ounces)                              8.5-9.5             N/a         8.5-9.5
Total cash costs (per
gold-equivalent ounce)             $525-$575       $680-$730       $570-$620
AISC (per gold ounce)              $660-$710       $940-$990       $850-$900
Capital expenditures ($
millions)                              $56.4           $23.6           $82.3

                                      Revised guidance
                                                                      Actual
                          San Dimas       Black Fox    Consolidated     2015
Attributable gold
gold-equivalent
production (gold-
equivalent ounces)  160,000-170,000   70,000-80,000 230,000-250,000  259,474
Gold production
(ounces)            120,000-130,000   70,000-80,000 190,000-210,000  221,060
Silver production
(million ounces)            7.5-8.5             N/a         7.5-8.5     8.30
Total cash costs
(per gold-
equivalent ounce)         $600-$650       $750-$800       $650-$700     $637
AISC (per gold
ounce)                    $775-$825   $1,000-$1,050     $975-$1,025     $972
Capital
expenditures ($
millions)                     $51.4           $23.6           $77.3    $93.3

Material assumptions used to forecast total cash costs for 2016 include: an average gold price of $1,078 per ounce (bases on actual gold prices received for Q1 2016 and $1,050 per ounce for the remainder of the year); an average silver price of $5.00 per ounce (calculated using the silver purchase agreement contract price(3) of $4.26 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $14 per ounce); and foreign exchange rates of $1.35 and 16 Mexican pesos to the U.S. dollar.

(1) Gold-equivalent ounces include silver ounces produced and converted to gold-equivalent based on a ratio of the average commodity prices realized for each period. The ratio for the first quarter 2016 was 278 to 1 based on the average realized prices of $1,178 per ounce of gold and $4.24 per ounce of silver.

(2) The preliminary cash cost information provided in this news release is approximate and may differ from the final results included in the company's Q1 2016 financial statements and management's discussion and analysis.

(3) According to the silver purchase agreement between the company and Silver Wheaton Corp., Primero will deliver to Silver Wheaton a per-annum amount equal to the first six million ounces of silver produced at San Dimas and 50 per cent of any excess at $4.24 per ounce (increasing by 1 per cent per year). The company will receive silver spot prices only after the annual threshold amount has been delivered.

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