Mr. Evan Young reports

PRIMERO ANNOUNCES WORK STOPPAGE AT SAN DIMAS

Primero Mining Corp.'s unionized employees at the company's San Dimas mine in Mexico have initiated a strike action, resulting in the complete stoppage of mining and milling activities at the site.

Primero received notification from the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic (Sindicato Nacional de Trabajadores Mineros, Metalurgicos, Siderurgicos y Similares de la Republica Mexicana) sections 21 and 22 of their intention to discontinue work when the parties failed to reach agreement during the negotiation of the collective bargaining agreement (CBA).

Primero is not seeking a reduction in individual worker compensation, although the total work force at San Dimas including contractors will be reduced, a process that has already commenced outside of the CBA negotiations. Primero needs to reduce the scale and complexity of the San Dimas operation in order to increase productivity and return the mine to positive cash flow. Primero's key focus in these negotiations has been to better align the short-term bonus structure with overall mine-site performance and profitability, and to move the labour force onto a more continuous shift cycle to improve productivity. Primero believes that these are critical changes required at San Dimas to return the operation to profitability.

Negotiations with the San Dimas union have not sufficiently addressed these critical issues, although good progress was made on a number of issues raised by the union. As a result, Primero asked the union to agree to an extension of the negotiation period, which was refused.

Depending on its duration, the strike could have a negative impact on the company's 2017 production, and as a result the company has decided to postpone the release of its formal 2017 production and cost guidance until resolution has been achieved.

About Primero Mining Corp.

Primero Mining owns 100 per cent of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100 per cent of the Black Fox mine and adjoining properties in the township of Black River-Matheson near Timmins, Ont.

We seek Safe Harbor.