TORONTO, ONTARIO--(Marketwire - Aug. 7, 2012) -

(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)(NYSE:PPP) announced today that it issued 8,422,460 common shares of the Company to Goldcorp Inc. (TSX:G)(NYSE:GG) ("Goldcorp") in payment for the $30 million principal of the convertible note held by Goldcorp.

Immediately following the issuance, Goldcorp owned an aggregate of 39,573,660 common shares of Primero, representing approximately 41% of the issued and outstanding common shares of Primero (increased from approximately 35%). The 8,422,460 common shares of Primero were issued from treasury at a deemed price of $3.74 per share for an aggregate value of $30 million.

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 is focused on delivering superior, sustainable value for all stakeholders with low-risk exposure to gold. 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.

Primero's website is www.primeromining.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Tamara Brown
Primero Mining Corp.
Vice President, Investor Relations
(416) 814 3168
tbrown@primeromining.com
www.primeromining.com