Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

January 19, 2007 17:46 ET

Primary Metals Reports Exploration Underway at Banjas Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Primary Metals Inc. ("Primary" or "Company") (TSX VENTURE:PMI) is pleased to report that an initial exploration program is underway at its Quinta/Banjas gold property, 30 kilometres east of Porto in Portugal. The program includes geological mapping and sampling, surface and underground diamond drilling, and percussion drilling, with an estimated budget of approximately EUR 250,000 (CDN$375,000).

The Quinta/Banjas property is held under an exploration permit from the Government of Portugal by Beralt Tin and Wolfram (Portugal) SA, a wholly-owned subsidiary of Primary. The permit covers an area of approximately 44 square kilometres. Terms include a security deposit of EUR 35,000 to the government and exploration expenditures of not less than EUR 150,000 over the first two years. After the initial term, the permit may be renewed annually for up to a further three years. At any time during the five-year period it may be converted into a mining licence.

The Banjas property and surrounding areas have been explored and mined intermittently since Roman times. Most recently, areas of the property were worked in the late 1930s, when a series of narrow quartz veins were mined for gold and a small processing plant was in operation at the Banjas mine, although no records were preserved. Old stopes and underground workings at Banjas are accessible and show black shales with quartz stringers, argillitic lodes and gold-arsenic-quartz mineralization in shear zones. Sampling of the argillitc lodes by Bureau de Recherches Geologiques et Minieres (BRGM) showed an average width of 70 centimetres. Historical results showed that from 80 samples taken, 10% showed gold values over 100 grams per tonne (g/t) gold with a maximum of 523 g/t gold. The structure appears to continue some 3,000 metres northwest from the Banjas mine to the Poco Romano area where it has been intersected by diamond drilling.

The current exploration program includes geological mapping and sampling of the structure and immediate area as well as twelve underground drill holes and six surface drill holes at the Banjas mine and five surface drill holes at Poco Romano. Initial assays are expected in about two weeks and will be reported when available.

Elsewhere on the property, work undertaken six kilometres to the north in the Quinta area by the BRGM, the Institute of Geology and Minerals in Portugal and others in the late 1980s and early and mid-1990s resulted in the development of a small historic near-surface resource in 1994 of 341,836 tonnes "proven", 121,424 tonnes "probable" and 321,513 tonnes "possible", all with a grade of 2.92 g/t gold and 11.4 g/t silver (These estimates are historical in nature and pre-date Canadian National Instrument 43-101. They are therefore non-compliant with NI 43-101, are not being treated as current resource estimates and should not be relied upon. However, Primary believes that these historical estimates provide a conceptual indication of the potential of the property and are relevant to ongoing exploration). Further studies were undertaken in the late 1990s, and Beralt obtained the exploration licence in 2006.

At Quinta, Primary is undertaking further mapping and sampling and a programme of about 50 shallow percussion drill holes to confirm previous work and check potential extensions to the deposit.

This work is part of a planned exploration and diversification programme of the company, which also holds the permit for the Argimela Tin deposit in Portugal and is currently evaluating other projects.

Primary Metals owns a 100 percent interest in the Panasqueira tungsten mine in Portugal and is currently producing wolframite concentrates containing some 100,000 MTUs of tungsten trioxide per annum with further improvements underway. The Panasqueira mine has a long history of production of high-quality wolframite concentrates and is the dominant producer of high-grade tungsten concentrates outside China. Further information is available at www.sedar.com and on the Company's website at www.primarymetals.ca.

On Behalf of the Board of Directors,

James Robertson, P. Eng., Director

James Robertson, P. Eng., is a Qualified Person for Primary and has reviewed and approved the information contained in this News Release.

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation the company's expectations as to the results of planned work programs, potential mineralization, resources, reserves, mine production levels and future tungsten prices. 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 has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

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