Primary Corp. to Commence Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2011) -

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Primary Corp. (TSX:PYC) ("Primary" or the "Company") is pleased to announce that it has received approval from the Toronto Stock Exchange (the "TSX") for its proposed normal course issuer bid ("NCIB") to purchase up to 1,726,056 common shares of the Company (the "Common Shares") from time to time in accordance with the normal course issuer bid procedures of the TSX representing approximately 10% of the Public Float (as that term is defined in the policies of the TSX) as of August 22, 2011. The period of the NCIB will extend from August 24, 2011 to August 25, 2012, or an earlier date should Primary complete its purchases. All purchases under the NCIB will be made through the facilities of the TSX. The price at which Primary will pay for any Common Shares purchased under the NCIB will be the market price at the time of such purchase. All Common Shares acquired by Primary under the NCIB will be cancelled. As at August 22, 2011, there were 19,320,809 Common Shares outstanding, of which the Public Float is 17,260,562. In accordance with the rules of the TSX and subject to the Block Purchase Exemption (as that term is defined in the policies of the TSX), Primary will not purchase in any given day during the period of the NCIB, in aggregate, more than 2,667 Common Shares, being 25% of the average daily trading volume of the Common Shares from April 25, 2011 (the date on which the Common Shares commenced trading on the TSX) to August 19, 2011. The brokerage firm conducting the NCIB on behalf of Primary is Haywood Securities Inc.

Primary is making the NCIB as it is of the view that its Common Shares have been trading at a price that does not adequately reflect the asset value and future business prospects of Primary. To the extent that Primary purchases its Common Shares in accordance with the NCIB, the holdings of remaining shareholders will represent an increased proportion of the Common Shares outstanding and, all other things remaining equal, will result in an increased net asset value per Common Share.

About Primary Corp.

Primary trades on the Toronto Stock Exchange under the symbol PYC. Primary is focused on natural resource lending. Primary's business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource‐related businesses and investing in public and private equity and quasi‐equity securities. Primary seeks to generate income primarily from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances.

Marret Asset Management Inc. is responsible for implementing Primary's investment strategy and managing Primary's investment portfolio.

About Marret Asset Management Inc.

Marret is an employee-owned firm based in Toronto and has over $5.7 billion of assets under management. Marret and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies.

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Forward-Looking Information

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to potential future purchases by Primary of its Common Shares pursuant to its normal course issuer bid. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such risks include, but are not limited to, market conditions and the other risks identified in the Company's annual information form under the heading "Risk Factors". There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.