Prime Mining Q2 2022 Exploration update, report to

VANCOUVER, British Columbia, December 09, 2021 (GLOBE NEWSWIRE) – Prime Mining Corp. (“Prime” or the “Company”) (TSX.V: PRYM) (OTCQB: PRMNF) (Frankfurt: O4V3) is pleased to present its operating and financial results for the second quarter of fiscal 2022, ended October 31, 2021. 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 and silver project in the state of Sinaloa, Mexico (“Los Reyes” or the “Project”).

Company highlights during the quarter

August 30e, the Company reported exercising 19,040,256 common share purchase warrants issued in August 2019 for gross proceeds of $ 9.52 million.

September 27e, Prime has appointed Ms Edie Hofmeister to the Board as an independent director. Ms. Hofmeister brings considerable strength and a wealth of knowledge to ESG issues and government affairs. She is a lawyer who has advised large and small multinational resource companies on legal and ESG matters for over 20 years. Most recently, she was Executive Vice President, Corporate Affairs and General Counsel of Tahoe Resources Inc., where she led legal, sustainability and government affairs departments as she grew from a small junior explorer to a mid-cap producer.

Additionally, Mr. Scott Smith has been appointed Executive Vice President, Exploration, replacing Kerry Sparkes who remains active with the Company as Senior Technical Advisor and supports Scott who will now lead exploration in our quest to continue the process. of discovery. Mr. Smith is a Registered Professional Geologist, Qualified Person, and has over 25 years of experience in mine production, exploration, mine start-up and advanced projects in world-class operating mines, and in brownfield and new situations in Canada and the United States. , Peru and Chile. Mr. Smith most recently worked as Chief Geologist for Taseko Gibraltar Mines Ltd., where he was responsible for the management of geology, geotechnics, dewatering, grade control, reconciliation and conversion of reserves, exploration, performance standards, quality assurance / quality control for production and exploration. . Mr. Smith is a very experienced manager of exploration and operations teams in Latin America; his previous positions include the exploration director for Teck Resources Ltd. for Chile and Argentina based in Santiago; exploration director for Newmont Mining Corp. at Minera Yanacocha in Peru; and senior mining geologist at the Antamina mine in Peru for Compania Minera Antamina SA. Mr. Smith holds a Bachelor of Science (Geology) from the University of Alberta.

Exploration highlights during the quarter

August 4e, the Company announced the discovery of gold and silver zones in the limited resource east of San Miguel in addition to near surface mineralization at Las Primas.

September 8e, the Company announced further high grade results increasing the open pit potential of Guadalupe East.

October 12e, the Company has confirmed the upward and downward potential of the Zapote-Tahonitas mineralized structure.

Highlights of subsequent events

Exploration update

November 16e, the Company provided an update on its planned Phase 2 drilling program. The Phase 2 program will run from approximately November 2021 to October 2022 and will consist of approximately 250 new drill holes, for a minimum of 50,000 meters (“m”). There are currently seven drilling rigs in operation on the property.

Other ongoing topics and activities critical to the overall progress and success of the project include:

Maintaining health and safety protocols

The Company has succeeded in minimizing 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 Society continues to adhere closely to guidelines from all levels of government and relevant health authorities in Mexico and Canada.

Ongoing community engagement and environmental stewardship

Responsible management of the local environment in which we operate is at the heart of our corporate values. We strive to minimize the environmental impact of our activities at all times. In addition, we aim to compensate for our activities by engaging in awareness initiatives to improve the local environment.

Selected financial data

The following selected financial data is summarized from the Company’s condensed interim consolidated financial statements and accompanying notes (the “financial statements”) for the quarter ended October 31, 2021. A copy of the financial statements and MD&A is provided available at www.primeminingcorp. .ca or on SEDAR at www.sedar.com.

Q2 2022
Q2 2021
Loss and overall loss ($ 5,600,423) $ (2,548,756)
Loss per share – basic and diluted (0.05) $ (0.03) $
October 30, 2021

April 30, 2021

Cash $ 29,848,024 $ 32,026,806
Total assets $ 43,961,419 $ 44,791,540
Total current liabilities $ 472,903 $ 894,128
Total responsibilities $ 1,396,764 $ 1,812,746
Total equity $ 42,564,655 $ 42,978,794

AGM Results

On Thursday, December 9, 2021, the Company held its annual general and extraordinary meeting of shareholders during which shareholders voted in favor of all the items proposed by the board of directors and management.

The shareholders voted in favor of the election of all the nominees for the position of director: Murray John (chairman), Daniel Kunz, Andrew Bowering, Paul Larkin, Marc Prefontaine, Paul Sweeney and Edie Hofmeister.

The shareholders also approved the following points:
1) Rename Davidson & Company LLP, Chartered Professional Accountants, as auditor of the Company for the ensuing year and authorize the Board to fix the remuneration of the auditor;
2) Fixing at seven (7) the number of directors of the Company for the following year;
3) Election of the directors in office for the following year;
4) Approval of the Company’s stock option plan (see information circular); and
5) Ratification by disinterested shareholders of the long-term incentive plan (see information circular).

A total of 60,222,302 blue chip ordinary shares were voted on, representing 53.50% of the total issued and outstanding at the closing date of this meeting.

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 contents 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 in Los Reyes between 1770 and 1990. Prior to the acquisition of Prime, the Recent Los Reyes operators had spent around $ 20 million on exploration, engineering and pre-feasibility studies. The project remains under-explored because only 40% of the known structures have been systematically drilled, leaving 10 kilometers of longitudinal length untested. Los Reyes holds the potential for further discovery and expansion of resources.

Prime Mining acquired Los Reyes in 2019, completed initial data compilation, terrain mapping and trenching in 2020, and in 2021, executed a Phase 1 exploration program that included 25,650 meters of drilling . The results suggest that the deposits are much larger than those previously reported and that there is potential for new discoveries outside of the currently defined resources. The Company is currently undertaking a Phase 2 exploration program of 50,000 meters.

About Prime Mining

Prime Mining (TSX Venture 50 member) 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 a large team and insider ownership.

The TSX Venture 50 is a ranking of the top performers in each of the 5 industry sectors on the TSX Venture Exchange over the past year.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz
Chief executive officer

For more information, please contact:

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

Andrew Bowering
Executive Vice President and Director
Prime Mining Corp.
710 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
Telephone: (604) 428-6128
Fax: (604) 428-6430
E: [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

The information contained in this document may include forward-looking statements. While these statements reflect the current plans, projections and intentions of management, by their nature, forward-looking statements are subject to many risks and uncertainties, some of which are beyond the control of the Company. Readers are cautioned that the assumptions used in the preparation of this information, although believed to be reasonable at the time of preparation, may prove to be imprecise and, as such, one should not place undue reliance on these forward-looking statements. There can be no assurance that the activities described in this press release will be completed as planned, if at all. The actual results, programs, activities and financial condition of the Company could differ materially from those expressed or implied by these forward-looking statements.


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