Prime Mining Announces Financial Results

VANCOUVER, British Columbia, Aug. 12, 2022 (GLOBE NEWSWIRE) — Prime Mining Corp. (“Premium” or the “Company”) (TSX.V: PRYM) (OTCQB: PRMNF) (Frankfurt: O4V3) is pleased to report its operating and financial results for the three-month period ending June 30, 2022. Unless otherwise indicated, all amounts are presented in Canadian dollars. Prime is focused on the exploration and development of its wholly-owned Los Reyes gold-silver project in the state of Sinaloa, Mexico (“Los Reyes” or the “Project”).

First General Manager, Daniel Kunz, said, “We are currently in the rainy season in Los Reyes, but we still have 5 rigs in operation and we have already completed 63,000 meters of drilling in phase 2, for a total of 88,500 meters in phases 1 and 2 combined. In July 2022, the Company announced the results of eight drill holes at the San Miguel East deposit, which were drilled down dip from the known structure at depth. All eight encountered mineralization, with seven of the eight extending beyond the current historic resource. The southernmost hole, 22SME‐11, with an 18 meter intersection returning 2.72 gpt Au and 129.8 gpt Ag (16.9 m etw), was intersected outside the pit constrained resource previously reported.

Highlights of the company during the quarter

May 10ethe Company announced its financial results for the three-month period ending March 31st2022. June 8ethe company announced an upgrade to trade on the OTCQX under the symbol PRMNF

Exploration highlights during the quarter

April 12e, the Company announced positive drill results from 26 drill holes at its Guadalupe East deposit. These holes intersected the high-grade epithermal Estaca, San Nicolas and San Manuel veins as well as other subparallel veins in the system.

May 2ndn/a, the Company announced new drilling results expanding the Zapote North deposit. These results included 17 new holes targeting the northern extension of the ZT structure, including 2 holes from the Mariposa deposit. This drilling confirmed that gold-silver mineralization extends from Zapote North to Mariposa.

June 1st, the Company announced 12 new step-out drill holes at the Guadalupe East deposit. Six of these holes intersected high-grade gold and silver mineralization below the current pit-confined resources, demonstrating the strong potential for resource expansion near the pit.

June 29e, the Company announced 20 additional assays as part of its expanded phase 2 step-out and infill drilling program at the Tahonitas deposit on the west side of the project. These results successfully identified shallow mineralization near surface as well as deeper mineralization up to 450 meters above sea level.

Maintaining health and safety protocols

The Company continues to successfully mitigate the impact of Covid-19 on operations. To date, Covid-19 has not had a significant effect on the Company’s activities. Prime remains engaged with local stakeholders and is proactive in monitoring employees and contractors during this uncertain time. The Company continues to closely comply with directives from all levels of government and relevant health authorities in Mexico and Canada.

Community Engagement and Environmental Stewardship Strategy

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

Selected financial data

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

Three months completed
June 30, 2022
Three months completed
July 31, 2021
Loss and total loss $7,063,916 $4,046,624
Loss per share – basic and diluted $0.06 $0.04
June 30, 2022 December 31, 2021
Cash $14,441,284 $27,413,707
Total assets $28,552,940 $41,785,376
Total current liabilities $915,536 $1,372,458
Total responsibilities $1,779,915 $2,470,784
Total equity $26,773,025 $39,314,592

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 of this press release.

Los Reyes Gold and Silver Project

Los Reyes is a rapidly evolving, high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa, Mexico, in the prolific mining region of the Sierra Madre. Historical operating results indicate that approximately 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 the acquisition of Prime , recent Los Reyes operators had spent approximately US$20 million on exploration. , engineering and pre-feasibility studies. The project remains under-explored as only 40% of known structures have been systematically drilled, leaving 10 kilometers of length untested. Los Reyes holds potential for further discovery and resource expansion.

Since acquiring Los Reyes in 2019, Prime has spent approximately US$30 million on direct exploration activities and is nearing completion of two full drilling phases totaling over 87,000 meters and growing. Results to date suggest that the eight known deposits are significantly larger than those previously reported and that there is potential for further 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 exploiting the full potential of the Los Reyes high-grade gold-silver project in Mexico. . Prime Mining has a well-planned capital structure with significant team and insider participation.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz
Chief executive officer

For more information, please contact:

Daniel Kunz
Chairman and Chief Executive Officer and Director
Prime Mining Corp.
1307 S. Colorado Ave
Boise, Idaho 83706
Phone: 1-208-926-6379 office
email: [email protected]

Andrew Bower

Executive Vice President and Director
Prime Mining Corp.
710 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
Phone: (604) 428-6128
Fax: (604) 428-6430
Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

This press release contains certain “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws, as may be amended from time to time, including, without limitation, statements regarding perceived merit. of the Company’s properties, including the potential for further exploration at Los Reyes, the potential quantity and/or grade of minerals, the potential size of the mineralized zone, metallurgical recoveries, the timing and results of permits and the the Company’s exploration and development plans in Mexico. Forward-looking statements are statements that are not historical facts and that address events, outcomes, results or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management as of the date the statements are made, and involve a number of risks and uncertainties. Certain important assumptions regarding these forward-looking statements have been made, including, without limitation, assumptions regarding the price of gold, silver and copper; the accuracy of mineral resource estimates; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including concession renewals and permits; that political and legal developments will be in line with current expectations; that currency and exchange rates will be consistent with current levels; and that there will be no material disturbances affecting the Company or its properties. Accordingly, there can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve important known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks relating to uncertainties inherent in the preparation of mineral resource estimates, including, but not limited to, changes in cost assumptions, variations in the quantity of material mineralization, grade or recovery rates, changes in geotechnical parameters or hydrogeological considerations, plant, equipment or process failure, changes in electricity availability or electricity rates, ability to maintain social license, changes in interest or tax rates, changes in project parameters, delays and costs inherent in community consultation and accommodation rights, environmental risks, title risks, including concession renewals, fluctuations in commodity prices and exchange rates, risks related to COVID-19, delays or failure. n-receipt of access agreements or amended permits, the risks inherent in estimating mineral resources; and the risks associated with the execution of the Company’s objectives and strategies, including costs and expenses, as well as the risk factors discussed in the last management report filed by the Company, as well as in its annual information form dated April 22, 2022, available at www .sedar.com. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the beliefs, estimates or opinions of management, or other factors, were to change.

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