Primero Announces Positive Ruling from Mexican Tax Authorities

Primero Mining PPP announced today that the Company's Mexican subsidiary has received a positive ruling from the Mexican tax authorities (Servicio de Administracion Tributaria) on its Advance Pricing Agreement ("APA") filing made in October 2011. The ruling confirms that the Company's Mexican subsidiary appropriately records revenue and taxes from sales under the silver purchase agreement(1) at realized prices rather than spot prices effective from August 6, 2010.Under Mexican tax law, an APA ruling is generally applicable for up to a five year period. For Primero this applies to the fiscal years 2010 to 2014. Assuming the Company continues to sell its silver from its San Dimas mine on the same terms and there are no changes in the application of Mexican tax laws relative to the APA ruling, the Company expects to pay taxes on realized prices for the life of the San Dimas mine. (1) According to the silver purchase agreement between the Company and Silver Wheaton Corp. ("Silver Wheaton"), until August 6, 2014 Primero will deliver to Silver See full press release