TORONTO, ONTARIO–(Marketwire – June 6, 2011) – Primero Mining Corp. (“Primero” or the “Company”) (TSX:P) announced today that it has successfully delivered the annual threshold of 3.5 million ounces of silver and will now sell 50% of the silver produced at San Dimas at spot prices for its own account until August 5, 2011.

“The silver purchase agreement was renegotiated in 2010 in order for Primero to participate in the silver produced at San Dimas. We expect the increased silver revenue derived from our increasing production to improve our profitability and leverage to precious metals,” stated Joseph Conway, President and C.E.O.

According to the silver purchase agreement between the Company and Silver Wheaton Corp., until August 5, 2014 Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of silver produced at San Dimas and 50% of any excess at $4.04 per ounce (increasing by 1% per year). Thereafter Primero will deliver to Silver Wheaton a per annum amount equal to the first six million ounces of silver produced at San Dimas and 50% of any excess at $4.20 per ounce (increasing by 1% per year). Primero sells 50% of the silver above these thresholds at spot market prices for its own account.

As the Company will receive silver spot prices only after the total annual threshold amount has been delivered, a quarterly fluctuation in revenues is expected. In addition, the agreement is not based on a calendar year but the anniversary of August 6, 2010. Primero expects that under the current agreement, its revenues will trend higher due to the increased silver revenue in the second and third quarters of each fiscal year. The Company estimates that it will sell between 500,000 and 750,000 ounces of silver at spot realized prices by August 5, 2011.

About Primero

Primero Mining Corp. is a Canadian-based precious metals producer and owns 100% of the San Dimas gold-silver mine in Mexico. Primero offers immediate exposure to un-hedged, low cash cost gold production with a substantial resource base in a politically stable jurisdiction. The Company has intentions to become an intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.