PRIMERO INCREASES PRODUCTION BY 15% AND LOWERS AISC BY 20% IN 2015;

EXPECTS ADDITIONAL COST REDUCTIONS IN 2016

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

Toronto, Ontario, January 25, 2016 --- Primero Mining Corp. (''Primero'' or the ''Company'') (TSX:P, NYSE:PPP) today announces its preliminary fourth quarter and full-year 2015 operating results and provides its 2016 guidance. The Company's fourth quarter and full-year 2015 financial results will be released on February 18, 2016.

Highlights:

• Record Production Achieved In 2015: Fourth quarter production of 68,155 gold equivalent ounces1 resulted in record annual 2015 production of 259,474 gold equivalent ounces, 15% higher than in 2014 and within the Company's 2015 production guidance range. Annual gold equivalent production is expected to increase by up to 8% in 2016 to between 260,000 and 280,000 ounces.

• Low Cash Costs and All-In Sustaining Costs: 2015 consolidated total cash costs2,4 are expected to be

  $637 per gold equivalent ounce with preliminary all-in sustaining costs3,4 of $972 per gold ounce,

  below the Company's 2015 guidance range of $640 to $680 per gold equivalent ounce for total cash costs and $1,030 to $1,060 per gold ounce on an all-in sustaining cost basis. Preliminary all-in sustaining costs at the San Dimas mine were notably low at $680 per gold ounce, benefiting from high mill throughput rates well above the 2,500 tonnes per day nameplate capacity and increased by- product silver production versus 2014 due to the inclusion of the Jessica vein.

• Further Cost Reductions Expected in 2016: Primero expects a 10% all-in sustaining cost reduction will be achieved in 2016 compared to 2015 through a combination of increased cost controls and improved economies of scale with higher throughput rates. The Company's 2016 guidance includes all-in sustaining costs of $850 to $900 per gold ounce, providing competitive positioning amongst gold industry peers.

• Focused 2016 Capital Expenditures: Capital spending in 2016 will focus on core expenditures related to mining operations at San Dimas and Black Fox, and will total $82.4 million including capitalized exploration. Aside from the remaining capital required to complete the 3,000 tonnes per day mill expansion at San Dimas, all capital allocated for expansionary projects has been suspended until metal prices improve.

''We completed 2015 with production momentum, low costs, and financial strength from our two mines in stable Americas-only jurisdictions,'' said Joseph F. Conway, Chief Executive Officer. ''Although 2015 was a volatile year in the markets we remained focused on delivering our operating plan. We advanced the San Dimas expansion while cutting its estimated capital costs significantly and delivered excellent exploration results across our asset portfolio. We are also well prepared to execute on the planned succession of Ernest Mast to the position of President and Chief Executive Officer and myself to Executive Vice Chairman later this month.''

''Our top priorities in the year ahead are meeting or exceeding operational targets, preserving a strong balance sheet amid a challenging metals price environment and continuing to focus on delivering free cash flow,'' said Ernest Mast, President and Chief Operating Officer. ''We are particularly focused on completing the expansion of our platform San Dimas asset to 3,000 tonnes per day and continuing to identify productivity opportunities while also ensuring we create a transformational shift in attitude at the mine towards a safety culture committed to a workplace free of accidents. We also will be vigilant in our assessment of the ongoing progress at the Black Fox mine and will act to ensure it is a profitable asset for the Company.''

Low Cost Gold Production in Canada and Mexico

Primero produced 68,155 gold equivalent ounces during the fourth quarter of 2015 (41,371 ounces of gold and

2.32 million ounces of silver from San Dimas, and 17,785 ounces of gold from Black Fox) --- resulting in record annual production for the Company of 259,474 gold equivalent ounces in 2015 (151,355 ounces of gold and

8.30 million ounces of silver from San Dimas, and 69,705 ounces of gold from Black Fox), 15% higher than in 2014 and within the Company's 2015 production guidance range.

The Company was successful at maintaining cost control in the fourth quarter, with preliminary consolidated total cash costs of $613 per gold equivalent ounce and preliminary all-in sustaining costs (''AISC'') of $1,021 per ounce. For the full-year 2015, preliminary consolidated total cash costs were $637 per gold equivalent ounce below the guidance range of between $640 to $680 per gold equivalent ounce, and preliminary AISC of

$972 per ounce also below the Company's 2015 cost guidance range of $1,030 to $1,060 per ounce.

San Dimas exceeded expectations producing 50,370 gold equivalent ounces during the fourth quarter at preliminary cash costs of $535 per gold equivalent ounce and preliminary AISC of $753 per ounce. This resulted in Primero achieving another consecutive record for annual production of 190,139 gold equivalent ounces at preliminary cash costs of $558 per gold equivalent ounce and preliminary AISC of $680 per ounce, well below the 2015 guidance range of $740 to $770 per ounce. 2015 production at San Dimas was notably higher than 2014 as a result of higher throughput related to the ongoing expansion of the mill to 3,000 tonnes per day (''TPD'') and increased availability of the high-grade Jessica vein. Average throughput in 2015 increased by 10% averaging a record 2,721 TPD (based on 365 day availability).

Black Fox produced 17,785 ounces of gold during the fourth quarter at preliminary cash costs of $834 per ounce and preliminary AISC of $1,104 per ounce. Underground throughput increased significantly quarter- over-quarter to an average of 620 tonnes per day. For the full-year 2015, the mine produced 69,705 ounces at preliminary cash costs of $850 per ounce. Preliminary AISC were $1,163 per ounce, in line with the 2015 cost guidance range and a significant decrease compared to 2014. The cost reduction was achieved largely through the achievement of process optimizations following Primero's re-capitalization efforts in 2014 and early-2015. Average mill throughput increased by 4% in 2015 averaging a record 2,400 TPD (based on 365 day availability).

Primero's 2016 Focus is on Maintaining a Low Cost Structure and Disciplined Capital Allocation

Primero expects an increase in 2016 production of up to 8% relative to 2015, partly due to the completion of the San Dimas mill expansion to 3,000 TPD expected in Q3 2016. The completion of the tailings filter has been delayed due to flooding in southern India which has impacted the timing of equipment delivery. Primero is guiding to between 260,000 and 280,000 gold equivalent ounces in 2016, which includes gold production of 215,000 to 235,000 ounces and 8.5 to 9.5 million ounces of silver. However, the Company expects Q1 2016 production to be lower than the quarterly average due to the implementation of improved safety procedures at San Dimas.

The Company expects to lower its overall spending profile in 2016 by focusing on prudent sustaining capital allocation. Sustaining capital projects have been prioritized given their respective relevance to maintaining production levels and 2016 exploration targets have been identified and prioritized based on potential to influence near-term production. As a result, AISC are expected to decrease by an additional 10% compared to 2015 to between $850 and $900 per gold ounce and total cash costs are expected to be in the range of $570 to $620 per gold equivalent ounce, well below industry averages.

Primero's 2016 production guidance is summarized in the following table:

Material assumptions used to forecast total cash costs for 2016 include: an average gold price of $1,050 per ounce; an average silver price of $5.16 per ounce (calculated using the silver purchase agreement contract price5 of $4.26 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $14 per ounce); and foreign exchange rates of 1.35 Canadian dollars and 16 Mexican pesos to the US dollar.

2016 Capital Expenditures Reduced But Not Restrictive

Primero has narrowed its 2016 focus to core capital expenditures related to advancing the existing underground mining operations at San Dimas and Black Fox, and as a result the Company expects capital expenditures in 2016 of $82.4 million, which includes capitalized exploration costs of $18.4 million.

Capital projects at San Dimas are principally related to the completion of the 3,000 TPD mill expansion, which is expected to increase the mine's annual production capacity to approximately 215,000 gold equivalent ounces beginning in Q3 2016. The Company is also focused on accessing the recently added mining concessions located adjacent to the original San Dimas concession that are not covered by the silver purchase agreement with Silver Wheaton Caymans Ltd. ("Silver Wheaton"), and as a result capital allocated for underground development is higher than in previous years.

Capital expenditures at Black Fox are principally related to the development of drifts and necessary infrastructure to ramp-up mining rates from the Deep Central Zone.

As a result of the current gold price, and based on the results of the recently completed internal scoping study, the Company has elected not to immediately proceed with the development of the Grey Fox project. The project does not generate a sufficient internal rate of return (''IRR'') to justify the required capital expenditure in the current gold price environment. Expenditures at Grey Fox have therefore been minimized in 2016 and the Company's principal exploration focus at the Black Fox Complex will be the continued definition and delineation of the Froome deposit and other Froome-style targets located near to existing infrastructure.

Exploration Focused on Adding Near-Term Production Ounces

Primero continues to invest in exploration at both of its mining operations, and has identified and prioritized 2016 exploration targets based on potential to influence near-term production in areas near existing infrastructure. In 2016, the Company is planning total capitalized exploration expenditures of $18.4 million.