Prime Mining Corp. provided a year-end update regarding its 100%-owned Sinaloa, Mexico-based Los Reyes gold-silver project. Work at the Los Reyes project began with an extensive program to repair and open the network of existing roads, drill roads and trails to gain proper access to the known mineralized parts of the project area. A 5,000 metre surface trenching and road cut sampling program was implemented and is providing valuable information for determining the surface expression of mineralized structures, planning pit locations and establishing where structures remain open to expansion. SAMPLING REVEALS EXPANSION POTENTIAL: In less than 90 days, 1881 samples had been collected from surface, representing about 60% of the planned program. Surface samples are taken across 1.5 metre intervals and weigh 5 to 7 kilograms each. To-date 808 samples have been analyzed and reported to the market in mid-December. Assay results ranged from below detection to 33.6 grams per tonne gold and 170.3 gpt silver. Of particular note are samples from trenches and road cuts that returned significant mineralization located outside previously mapped or modelled mineralized structures. These samples include meaningful new finds grading between 1.42 gpt gold and 49.4 gpt silver over 13.5 metres to 5.58 gpt gold and 23.2 gpt silver over 15.0 metres. Numerous trenches returned wide areas of significant mineralization as detailed in news release of December 12, 2019. Only 25% of the samples taken to date have been reported and additional results will be stated throughout the new year. Based on these results, the Company is already planning to increase the size of the surface program. Evidence from trenching and sampling at three of five planned pit locations indicate the structures are open along strike and are wider than designated in historic mapping. In addition, much of the historical drilling is at such depths that, due to the lack of surface data, previously modelled resources were not carried to surface. Evidence now suggests that new modelling will allow for the resource to be projected to surface, increasing minable tonnes, recoverable ounces and reducing the stripping ratios associated with any future development. Prime geologists are working with a database of 493 historic drill holes to establish a new NI 43-101 compliant in-pit resource for all of the drilled project areas. Of note, for the first time since modern work has been completed at Los Reyes, all 493 historic drill holes are in one model. The data set has been thoroughly reviewed and is presently being modelled by an independent engineering firm to estimate the resource. Disclosure on the engineering firm and the updated resource is planned for early in the new year. Prime anticipates that the current work could significantly expand the size of the existing historic gold and silver resource of 380,100 Indicated ounces at 1.73 g/t and 155,200 Inferred ounces at 1.49 g/t and silver resource of 6,315,300 Indicated ounces at 28.7 g/t and 3,639,000 Inferred ounces at 34.9 g/t. The existing resource estimate was prepared by Tetra Tech for Vista Gold in 2013. Prime expects to see an increase in the mineral resources from the addition of its new surface assay data, the inclusion of the Guadalupe mineralized areas into the block model, and with remodeling being completed on the resource at a 0.25 gpt gold cutoff, compared to the previous resource estimates that used 0.5 gpt gold. Prime plans to begin a Preliminary Economic Assessment (PEA) and prefeasibility work on the new resource as soon as possible and expects to engage an independent engineering firm to assist in preparation of this detailed technical study. Currently, alliance with Daniel Kunz & Associates is providing value-add engineering by helping reduce the time and cost of the technical studies by analyzing ore mining rates, crusher sizing, alternative haul roads, leach pad locations and orientation. In 2013, Tetra Tech completed a Preliminary Economic Analysis that employed open-pit mining together with a milling circuit feeding a gravity and carbon-in-leach (CIL) gold recovery process. The planned mine would produce mineralized material at a rate of 1,500 tonnes per day for a total of 5.5 million tonnes excavated from 5 nearby pit locations. This estimate is validated by an unrelated Preliminary Feasibility Study undertaken in 1998. The Los Reyes project is being evaluated at a mining rate of up to 4,500 t/d of mineralized material for a total of 11 million tonnes from between 5 to 7 pit locations. Given the identified exploration potential to add additional mineralized material resources to the project, engineering is also including a heap leach pad size to accommodate up to 20 million tonnes. While metallurgical testing completed on Los Reyes in the late 90s is readily available and provides useful insight to the recovery of gold and silver using both heap leach and milling/tank leach extraction processes, a confirmation metallurgical testing program has been designed for heap leach recovery and is planned to be implemented early in the first quarter. In addition to the current surface sampling work, resource modelling and estimation, engineering studies and review of all historical data, Prime has determined a short list of firms to begin the mine permitting process at Los Reyes.