Primary Metals Inc.

Primary Metals Inc.

August 24, 2007 15:08 ET

Primary Metals Announces that Sojitz Corporation Mails Offer to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) - Primary Metals Inc. (TSX VENTURE:PMI) ("Primary") announced today that Sojitz Corporation ("Sojitz") has filed with Canadian securities regulators its formal offer (the "Offer") to acquire, through its wholly-owned subsidiary, Sojitz Tungsten Resources, Inc., all of the outstanding shares of Primary (the "Shares") and has commenced the mailing of the Offer and related documents to Primary shareholders. Primary has concurrently filed and commenced mailing of a directors' circular concerning the Offer.

The Board of Directors of Primary has unanimously approved the proposed transaction and recommends that shareholders tender their Shares to the Offer. Capital West Partners, Primary's financial adviser, has provided an opinion to Primary's Board of Directors that the transaction contemplated by the Offer is fair, from a financial point of view, to Primary's shareholders. A copy of the fairness opinion is attached to the directors' circular.

Primary shareholders wishing to accept the Offer are encouraged to tender their Shares by completing the letter of acceptance and transmittal accompanying the documents mailed to them and returning it, together with certificates representing their Shares and all other documents, to the offices of Computershare Investor Services Inc. in accordance with the instructions in the letter of acceptance and transmittal. If Shares are held by a broker or other financial intermediary, Primary shareholders should contact such intermediary and instruct it to tender their Shares.

Questions About the Primary Offer

For further information about the Offer, Primary shareholders should contact Georgeson at 1-888-605-7632 (Toll free, North America) as directed in the Offer documents.

About Primary Metals

Primary owns a 100 percent interest in the Panasqueira tungsten mine in Portugal, which 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 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 businesses. Further information is available on Sojitz's website at

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 the accuracy of this release.

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