Primero Closes Sale of Black Fox Mine and Complex

TORONTO, ON--(Marketwired - October 06, 2017) -

(Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.)

Primero Mining Corp. ("Primero" or the "Company") (TSX: P) today announces that the Company has closed the previously disclosed sale of the Black Fox mine and associated assets, located near Timmins, Ontario, Canada, to McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) ("McEwen"). Primero will receive total consideration of $32.5 million following a closing net working capital adjustment of $2.5 million. This includes $27.5 million in cash proceeds and the expected release of $5.0 million from restricted cash that was pledged towards environmental closure liabilities in the amount of $16.5 million, which will be assumed by McEwen. The proceeds net of closing costs from the sale of the Black Fox Complex have been used to permanently reduce the outstanding balance on the Company's revolving credit facility ("RCF"). When released, the restricted cash will also be applied to reduce the outstanding balance of the RCF, and following which Primero will have an additional $5.0 million of available credit for further drawdown, if required.

About Primero

Primero Mining Corp. is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico.

Primero's website is www.primeromining.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains "forward-looking statements", within the meaning of applicable United States and Canadian securities legislation, concerning the business and operations of Primero Mining Corp. and its consolidated subsidiaries (collectively, "Primero" or the "Company"). All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Company's expectation to receive total consideration of $32.5 million for the sale of the Black Fox mine and associated assets, the expected release of $5 million from restricted cash, that upon its release such cash will be applied to reduce the outstanding balance of the Company's revolving credit facility, and that thereafter the Company will have an additional $5 million of available credit to further draw on the revolving credit facility. The assumptions made by the Company in preparing the forward-looking information contained in this news release, which may prove to be incorrect, include, but are not limited to: the expectations and beliefs of management; the specific assumptions set forth above in this news release; that there is no significant delay in the release of the restricted cash; that the exchange rate between the Canadian dollar and the United States dollar remain consistent with current levels; that there are no other events or matters that would prevent the Company either from paying down the outstanding balance of the revolving credit facility, or otherwise affect its ability thereafter to draw on the revolving credit facility.