Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

May 11, 2006 13:14 ET

Primary Metals Discovers New High Grade Zones at Panasqueira Tungsten Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) - Primary Metals Inc. (TSX VENTURE:PMI) ("Primary" or the "Company") is pleased to announce that it has uncovered new high-grade zones of tungsten ore (wolframite) at its wholly-owned Panasqueira tungsten mine in Portugal. The discovery results from recent underground development work and an on-going drilling program, which should be completed by mid-June. The limits and extent of the high-grade zones have not yet been fully determined.

This new mineralization is believed to include some of the richest material ever discovered in the mine's 100-year history of production. Underground drilling associated with ongoing development work has identified and defined the new tungsten ore in vein structures to the south and west of the main mineralized zone.

"We are delighted with the new discovery at Panasqueira and are extremely pleased with the success of the mine's optimization program," commented Lewis Black, Chairman of Primary Metals. "As a result, shipments of tungsten concentrates in the fourth quarter have increased by 13% compared to the third quarter."

Primary continues to streamline its mining operations and recently added a fourth low profile, Atlas Copco ST 600 LHD ("load/haul/dump") unit to its mining fleet. All new development areas in the mine now utilize low profile mining equipment, which effectively reduces mining dilution of the ore.

Plant refurbishment is continuing and the recent addition of a new Knelson concentrator for the slimes circuit has shown the potential to increase tungsten recovery. Preliminary testwork to recover tungsten from old tailings material is ongoing and results to date continue to be promising, particularly with respect to the slimes and the slimes dam at the mine, which management estimates to contain at least 500,000 MTUs of contained tungsten trioxide (1 MTU equals 1 metric tonne unit or 10 kilograms) based on historic mine records.

Primary Metals is also currently evaluating other projects with the aim of increasing its resources and diversifying its portfolio.

About Primary Metals

Primary Metals Inc. is a TSX Venture listed company which owns 100% interest in the Panasqueira tungsten mine in Portugal, currently producing wolframite concentrates containing some 120,000 MTUs of tungsten trioxide per annum. Mining has been carried out at Panasqueira for over 100 years. Significant increases in tungsten prices from US$85 to as high as US$290 per MTU in the past year, along with current improved mining activities, have recently yielded profitable results and the Company has reported earnings of $0.56 per share for the first nine months of fiscal 2006.

On Behalf of the Board of Directors,

James Robertson, P. Eng., Director

This News Release contains forward-looking statements respecting the company's expectations as to the results of planned work programs, potential mineralization, resources, reserves and mine production levels. Such statements are based on certain assumptions, including continued demand for tungsten, availability of capital, equipment and personnel to carry out and complete the planned work programs and accuracy within a reasonable range of reported exploration and development results, and involve various risks and uncertainties, including global economic factors, future commodity prices, lack of availability of equipment or personnel, and results of exploration and development. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Other important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time-to-time with regulatory authorities and on www.sedar.com.


The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

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