Advanced Primary Minerals Corporation

Advanced Primary Minerals Corporation

June 08, 2009 10:45 ET

APM Announces Sale of Interest in the Yellow Giant Gold Project

HALIFAX, NOVA SCOTIA--(Marketwire - June 8, 2009) - Advanced Primary Minerals Corp. ("APM") (TSX VENTURE:APD), formerly Beta Minerals Inc., is pleased to announce that it has entered into an agreement of purchase and sale with Selkirk Metals Corp. ("Selkirk") for the sale of its 39% mineral interest in the Yellow Giant gold project giving Selkirk a 100% mineral interest in the property. The Yellow Giant gold project is situated on Banks Island in north-western British Columbia. Under the terms of the Agreement, Selkirk will make a cash payment to APM of $15,000, will issue 600,000 Selkirk common shares to APM and will grant APM a 1.5% net smelter return ("NSR") royalty on the property, all subject to receiving necessary regulatory and corporate approvals. Selkirk has the right under the Agreement to buy back one-third of the NSR royalty (.5% NSR) at any time for $300,000 and Selkirk retains a right of first refusal on any disposition of the NSR royalty by APM.

The sale resulted from a decision by APM management, since completion of the reverse takeover ("RTO") of Beta Minerals Inc. ("Beta") on February 27, 2009 by Erdene Resource Development Corp. ("ERD") (TSX:ERD) through the sale the shares of its subsidiary Erdene Materials Corporation ("EMC"), to divest of the Beta precious and base metal properties acquired through the RTO and concentrate on EMC's industrial minerals assets, namely its premium primary kaolin operation in Georgia, USA. In addition to the Yellow Giant project, APM also owns an option to earn a 100% interest in the Easter gold project situated 10 miles southwest of Caliente, Nevada and approximately 300 miles northeast of Las Vegas, Nevada. Gold mineralization at Easter is hosted in a quartz-adularia vein stockwork system within Tertiary volcanic rocks of the Caliente Caldron Complex of southeastern Nevada. The system has been traced along a strike length of 2,000 metres attaining widths of up to 61 metres and has been drill tested to a depth of 530 metres. A total of 101 drill holes have been completed on the property and the zone has been penetrated by nine short adits, some minor lateral development.

Update on Primary Kaolin Operation

APM's goal is to become North America's leading specialized primary kaolin producer. To this end, a new state-of-the-art processing facility has been constructed in Dearing, Georgia and the first shipment of product from the new plant took place on May 11, 2009. The new Dearing plant is ideally located along the Augusta Highway, adjacent to rail with existing access to all required utilities. Extensive product development and testing has been carried out over the past five years and APM has advanced commercial trials underway to complement production commitments already in place.

APM is targeting value added products that benefit from the unique attributes of the Company's high quality primary kaolin resource under a two phase development program. Target markets under the Phase one program, currently underway, is focused primarily on primary kaolin products for the North American ceramics and whitewares industries as well as conducting toll processing of a non-kaolin product for a third party under a contract that guarantees minimum monthly production volumes. Final modifications to the kaolin circuit are continuing with the installation of a continuous feed hopper conveyor system and integration of a multi-silo bagging and bulk shipping process. The full kaolin processing circuit and the toll processing circuit within the Dearing plant is scheduled to be fully operational by July 1, 2009.

During the Phase one program, a Phase two feasibility program will be completed along with further product development and trials for an expanded product line targeting the paint and coatings and catalysts industries as well as other specialty industrial applications. Product trials have shown that APM's primary kaolin products meet or exceed the quality of comparable foreign imports. Proximity to the US domestic market and elimination of foreign exchange risk add a strong competitive advantage.

About APM

APM, through its wholly owned subsidiary EMC, has been active in Georgia and South Carolina for over 10 years and spent over $15 million exploring for, evaluating, extensively testing and securing high quality primary kaolin resources. APM has also operated an industrial minerals laboratory in Eatonton, Georgia since 1998. It will commence commercial production at a newly constructed kaolin processing facility in Dearing, Georgia in July of 2009. The Company is targeting value added products that benefit from the unique attributes of its high quality, primary kaolin resource. Target markets include ceramics, paint and coatings, catalysts and other industrial applications. APM has a consolidated cash position of approximately $1.3 million US, 109,742,853 shares issued and outstanding and a fully diluted share position of 113,542,853.

Additional Information

Additional information regarding the February 27, 2009 reverse takeover of Beta (who subsequently changed its name to APM) by ERD can be found in the March 3, 2009 press release which is available at

Forward-Looking Statements

Certain information regarding APM contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although APM believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. APM cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what APM currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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