Primary Metals Inc.

Primary Metals Inc.

October 02, 2007 19:51 ET

Sojitz Corporation Acquires Approximately 95% of the Common Shares of Primary Metals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - Primary Metals Inc. ("Primary") (TSX VENTURE:PMI) announces that 13,446,000 common shares of Primary (the "Primary Shares") have been validly deposited pursuant to the offer (the "Offer") made by Sojitz Tungsten Resources, Inc., a wholly-owned subsidiary of Sojitz Corporation ("Sojitz") to acquire all of the Primary Shares. Sojitz has announced that, as all conditions of the Offer have been satisfied, it will take up and accept for payment all Primary Shares so deposited, which, together with the Primary Shares already owned by Sojitz, represent approximately 95.34% of the outstanding Primary Shares on a fully-diluted basis. It is expected that payment for Primary Shares taken up will be made on or before October 9, 2007.

Under the Offer, Primary shareholders will receive C$3.65 in cash per Primary Share. In aggregate, Sojitz will pay approximately C$49 million as consideration for Primary Shares tendered to date.

The Offer expired at 5:00 p.m. (Eastern time) on October 2, 2007 and will not be extended. Sojitz has announced that it intends to acquire all Primary Shares not tendered to the Offer by way of a compulsory acquisition pursuant to the British Colombia Business Corporations Act and will shortly mail a notice of compulsory acquisition to acquire all Primary Shares not acquired pursuant to the Offer.

Sojitz has now taken effective control of Primary, and is working with management of Primary to integrate Primary's operations with those of Sojitz as soon as possible. At a meeting of the Primary board of directors to be held later this week, Sojitz expects to replace the current board of Primary with nominees of Sojitz, and to appoint officers of Primary.

About Primary Metals Inc.

Primary owns a 100% interest in the Panasqueira tungsten mine in Portugal, which is currently producing wolframite concentrates containing some 100,000 MTU's of tungsten trioxide per annum. 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 under Primary's profile at and on Primary's website at

About Sojitz Corporation

Sojitz, one of Japan's leading trading companies, is listed on the Tokyo Stock Exchange with revenues of C$42 billion, net assets of C$4.2 billion and a market capitalization of C$5.3 billion. Sojitz conducts its operations in 50 countries through approximately 500 consolidated subsidiaries and affiliated companies with over 19,000 employees worldwide. Its business activities cover machinery and aerospace, energy and mineral resources, chemicals and plastics, real estate development, forest products and consumer lifestyle-related business. Further information is available on Sojitz's website at


This press release does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States (including its territories, possessions, each state thereof and the District of Columbia, the "United States") or by "U.S. persons", as that term is defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act").

This press release does not constitute or form part of any offer to sell or invitation to purchase any securities or solicitation of an offer to buy any securities, pursuant to the Offer or otherwise.

This press release contains forward-looking statements with respect to the Offer and the transactions contemplated thereby, including the proposed business combination of Sojitz and Primary, Primary's financial condition, results of operations, business prospects, plans, objectives, goals, strategies, future events, capital expenditures, and exploration and development efforts. Words such as "anticipates", "expects", "intends", "plans", "forecasts", "projects", "budgets", "believes", "seeks", "estimates", "could", "might", "should", and similar expressions identify forward-looking statements. Although Primary believes that its plans, intentions and expectations reflected in these forward-looking statements are reasonable, Primary cannot be certain that these plans, intentions or expectations will be achieved. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained in this press release.

On Behalf of the Board of Directors,

James Robertson, P. Eng., Director

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

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

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