Prime Mining Corp. announces new drill results that continue to expand known mineralized structures at its wholly-owned Los Reyes gold-silver project (“Los Reyes”) in Sinaloa State, Mexico. Results reported are from 17 new core holes from the Company's exploration program targeting the northern extension of the Zapote-Tahonitas structure (“Z-T Structure”).

Seven of the 17 core holes are near the historical underground Mariposa Mine and the other 10 new core holes are from Zapote North in a previously untested mineralized gap between Zapote North and Mariposa. These holes confirm that gold-silver mineralization extends from Zapote North to Mariposa, increasing the total length of the gold-silver mineralized Z-T Structure by 450 metres (“m”) to approximately 3.0 kilometres. (“km”) Holes reported today are from Phase 1 drilling through October 30, 2021, and Phase 2 drilling that began November 1, 2021.

Approximately 15,000 m of the planned 50,000 m Phase 2 drill program are targeting the Mariposa, Zapote North, Zapote South and Tahonitas gold-silver mineral deposits that make up the Z-T Structure (see Figure 2). There are currently 3 drill rigs working on the west side of the property at the Z-T Structure and 5-rigs working on the east side of the property at the Guadalupe and El Orito structures. The Company continues to work with the assay laboratory to resolve, and where possible accelerate, the previously reported current backlog of drill hole samples requiring assaying.

The assay turnaround time is now 6-8 weeks, including completion of QA/QC procedures. Despite the assay delays, the efficient ramp up of drilling and mobilization of a reverse circulation drill rig has kept Phase 2 progress on target with 21,530 m, comprising 69 holes, already drilled including approximately 5,440 m in November, 4,550 m in December and 6,850 m in January. Highlight Drill Intercepts Mariposa Step Out Drilling 4.89 grams per tonne (“gpt”) gold (“Au”) and 22.2 gpt silver (“Ag”) over 35.3 m (34.7 m estimated true width (“etw”) including 23.13 g/t Au and 61.4 g/t Ag over 2.9 m (2.9 m etw) and 41.50 g/t Au and 40.4 g/t Ag over 1.5 m (1.5 m etw) plus 1.08 gpt Au and 18.4 gpt Ag over 2.4 m (2.3 m etw) (21MA-06); 1.34 gpt Au and 24.5 gpt Ag over 16.7 m (12.8 m etw) including 3.22 g/t Au and 36.2 g/t Ag over 2.5 m (1.9 m etw) and 1.27 g/t Au and 5.8 g/t Ag over 1.4 m (1.0 m etw) (21MA-01); and, 3.06 gpt Au and 30.2 gpt Ag over 1.5 m (1.5 m etw) (21MA-03).

Zapote North Step Out Drilling 1.29 gpt Au and 25.7 gpt Ag over 10.5 m (7.4 m etw), including 4.93 gpt Au and 42.3 gpt Ag over 0.8 m (0.5 m etw) and 2.74 gpt Au and 40.5 gpt Ag over 1.9 m (1.3 m etw) (21ZAP-28); and, 1.00 gpt Au and 5.6 gpt Ag over 12.0 m (10.4 m etw) (21ZAP-39). Z-T Structure and Mariposa: The Mariposa Mine is situated within the continuation of the Z-T Structure. The historical workings occur on three levels with the small-scale mine centred on a 35° change in strike of the structure from ~300° in the southeast to 265° in the northwest.

This strike change is similar to the flexure in the Zapote South deposit and is probably responsible for, or related to, the development of a dilation zone with localization of higher-grade mineralization. Stockwork structures with greenish coloured quartz have been observed at Mariposa. In the historical underground mine, the mineralized structure is exposed in a 135-m long, 3 m wide adit with several drifts and cross cuts.

Historical reports indicate that there are several other adits along the structure. The Z-T Structure consists of quartz veins, stringer zones and quartz breccias that range from 5 to 35+ m wide with the structure averaging between 15 and 20 m wide over its recently expanded 3.0 km length. 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 or BQ size ranges (47.6 mm and 36.5 mm respectively) 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. Each entire hole is split, and one half is submitted for assay. Sample QA/QC measures of 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 lab 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 reanalysis, completed at their respective Hermosillo, Mexico laboratories and multi-element analysis in North Vancouver, British Columbia, 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 reanalyzed by fire assay with gravimetric finish FA530 or Au-GRA21.

Both Bureau Veritas and ALS Labs are ISO/IEC accredited assay laboratories. Drill core assay results range from below detection to 93.80 gpt gold and 4,955.0 gpt silver. Composite intervals use a cut-off grade of 0.20 gpt gold.