Mr. Joseph Conway of Primero reports

PRIMERO ANNOUNCES SALE OF BLACK FOX MINE AND COMPLEX

Primero Mining Corp. has entered into an agreement with McEwen Mining Inc. to sell its interest in the Black Fox mine and associated assets located near Timmins, Ont. Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.

Under the terms of the agreement, Primero will receive consideration of $35-million, in cash, subject to certain closing adjustments. Definitive documentation is expected to be completed before the end of this month.

"The proposed transaction for the divestiture of Black Fox is consistent with our previously disclosed strategic review process to maximize value for shareholders," said Joseph Conway, president and chief executive officer. "I would like to thank everyone at Black Fox for their commitment and dedication, and we wish them continued success as part of the McEwen team. We will continue to advance definitive documentation and work closely with the team at site to ensure a smooth transition."

Primero expects to use the proceeds from the transaction to reduce the company's total debt position. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2017. Scotiabank acted as financial adviser to Primero.

About Primero Mining Corp.

Primero is a Canadian-based precious metals producer that 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., Canada. Primero offers immediate exposure to unhedged, below-average cash cost gold production with a substantial resource base in politically stable jurisdictions. The company is focused on becoming a leading intermediate gold producer by building a portfolio of high-quality, low-cost precious metals assets in the Americas.

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