Mr. Daniel Kunz reports

PRIME RELEASES HIGH-GRADE DRILL RESULTS FROM TWO NEW GENERATIVE TARGETS AT LOS REYES

Prime Mining Corp. has released drill results from its continuing 60,000-metre drill program, of which about one-half is focused on regional exploration at Los Reyes. Today's results are from the Las Primas and Fresnillo generative targets at the company's Los Reyes project, located in Sinaloa state, Mexico.

Newly discovered Las Primas mineralization outside of the previously reported 2023 Mineral Resource Estimate ("MRE") contains high-grades and significant thicknesses in areas located between the Central and Guadalupe Zones. The precious metals mineralization is in high-grade plunging shoots, similar to Guadalupe, Tahonitas and Nocha Buena areas, that contain a multiple gram per tonne ('gpt') gold equivalent ('AuEq') center with an outer, lower-grade halo. At Las Primas, mapping and 2023 drilling has confirmed continuity of at least two mineralized structural corridors that remain open in all directions.

Fresnillo is a highly prospective earlier stage target, where drilling intercepted thick mineralized structures, between the Z-T and Central Zones. Follow-up drilling is planned to continue. Surface mapping and modelling of these structures is ongoing.

Generative Target Highlights

Las Primas Area:

The Company is reporting 12 core holes at the Las Primas target. Las Primas is located in the southeast of the Project area between the Central and Guadalupe Zones. Highlights are listed below:

• 12.34 gpt AuEq (10.85 gpt Au and 114.9 gpt Ag) over 2.5 metres (m) estimated true width ('ETW') in hole 23LP-14, including:
  • 17.50 gpt AuEq (15.40 gpt Au and 162.2 gpt Ag) over 1.7 m ETW.
• 1.73 gpt AuEq (1.70 gpt Au and 2.3 gpt Ag) over 9.6 m ETW in hole 23LP-06, including:
  • 4.94 gpt AuEq (4.88 gpt Au and 4.7 gpt Ag) over 3.0 m ETW.
• 1.20 gpt AuEq (0.87 gpt Au and 25.8 gpt Ag) over 14.6 m ETW in hole 23LP-07, starting just below surface.

Fresnillo Area:

The Company is reporting 11 core holes at the Fresnillo target, located between the south ends of the Z-T and Central Zones. Highlights are listed below:

• 0.74 gpt AuEq (0.56 gpt Au and 14.3 gpt Ag) over 23.8 m ETW, and
• 0.48 gpt AuEq (0.41 gpt Au and 5.3 gpt Ag) over 20.8 m in hole 23FRE-12.
• 1.65 gpt AuEq (1.06 gpt Au and 45.2 gpt Ag) over 10.9 m ETW in hole 23FRE-19, including:
  • 12.30 gpt AuEq (6.63 gpt Au and 438.0 gpt Ag) over 0.85 m ETW.
• 1.39 gpt AuEq (0.87 gpt Au and 40.4 gpt Ag) over 7.5 m ETW in hole 23FRE-20.

Prime Mining Corp. Chief Executive Officer Daniel Kunz commented, "Today's results demonstrate the growing potential of our gold-silver exploration targets outside of the current mineral resource zones. New mineralized areas like these are expected to contribute to our goal of continued expansion of the Los Reyes gold-silver resource. As Las Primas and Fresnillo are proximal to existing resource zones, we anticipate incremental value-add from these nearby generative targets."

Scott Smith, Executive Vice President of Exploration added, "We are successfully executing a two-pronged approach to exploration: firstly, drilling resource expansions at Z-T, Central and Guadalupe Zones, the three areas that form our current mineral resource estimate, and secondly, exploring a growing number of new, generative targets. Mapping, surface sampling and modeling are ongoing to help guide generative drilling. We have many additional generative targets at Los Reyes identified that we have not yet had the opportunity to fully drill-test. A strong focus on exploration access improvements has facilitated this newly reported drilling and will allow more efficient drilling of many of these generative targets going forward."

Prime is targeting a material resource expansion at Los Reyes through a combination of new generative area discoveries and growth, such as those being reported today, in addition to on-going expansion along strike and down dip within previously reported mineral resource areas. These recent regional results are from the initial generative program which is expected to be followed-up as the Company continues to evaluate the full potential of Los Reyes.

Figure 1: Generative drilling update

INTERPRETATION OF RESULTS

The drilling described in this news release is the result of Prime's success-based generative exploration program. Currently drill-limited mineralized areas (500 m2 at Las Primas and 700 m2 at Fresnillo) are demonstrating potential to become standalone deposits. Prime is the first to drill at both Las Primas and Fresnillo.

Las Primas was first identified through historical records and the Company's earlier sampling and mapping work. Prime conducted initial drill-testing at Las Primas in 2021 using a portable rig due to limited road access. On August 4, 2021, Prime released the first three holes at Las Primas, that included hole 21LP-02 at 1.8 gpt AuEq over 3.8 m ETW, located 24 m downhole. Today's results are the product of Prime's focused generative drill program (see Figure 2 and 3), which has identified what appears to be two or more major parallel vein sets.

The Las Primas area is located approximately 475 m east of the Noche Buena pit-constrained MRE in the Central Zone and 500 m southwest of the Guadalupe East pit-constrained MRE in the Guadalupe Zone. Similar to Guadalupe East, mineralization at Las Primas is primarily hosted in quartz veins and breccias near the intrusive contacts between feldspathic porphyry and rhyolitic/dacitic intrusives. Drilling has defined mineralization in multiple structures along a 300 m strike length and up to 240 m down-dip and is open in all directions (see Figures 4a-c). The potential to find structural intersections similar to those identified in Guadalupe East is high.

Fresnillo was first drilled as part of Prime's 2022 drill program. Prime published the first nine drill holes from Fresnillo on February 27, 2023, highlighting hole 22FRE-09 at 1.7 g/t AuEq over 15.8 m ETW.

Fresnillo is located between the Z-T and Central Zones, with mineralization identified to date roughly 150 m from the Noche Buena pit-constrained MRE in the Central Zone and 500 m from the Z-T pit-constrained MRE to the west. Similar to the Z-T and Central Zones, mineralization at Fresnillo is in high-grade, south-plunging shoots surrounded by lower-grade mineralized halos. Mineralization has been identified in multiple southwest-dipping structures, which remain open both down-dip and along strike to the southeast (see Figures 5 and 6).

Drilling at Los Reyes is ongoing through the current rainy season (which is expected to end in the coming weeks) with four drill rigs focusing on:

• extending the high-grade Z-T shoots that remain open at depth, as well as along strike north and south;
• expanding the two other MRE resource areas, including the eastern extensions of the Guadalupe Zone and Echeguren Shaft area; and,
• exploring multiple new generative targets.

Prime has completed over 38,000 m of its planned 60,000 m 2023 drill program and will continue to evaluate its drilling plans using its success-based approach.

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 (47.6 mm) 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 two 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. On May 2, 2023, Prime announced an updated multi-million-ounce high-grade open pit constrained 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.

We seek Safe Harbor.