Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

May 07, 2007 09:00 ET

Primary Metals Announces Wind Generation Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 7, 2007) - Primary Metals Inc. (the "Company") (TSX Venture:PMI) is pleased to announce that Enernova - Novas Energias SA, ("Enernova") a subsidiary of Electricidad de Portugal, ("EDP"), the sole transmitter and largest producer and distributor of electricity in Portugal, will commence construction of eolic wind energy generators on the Company's property in central Portugal. Construction is planned to start in the first quarter of 2008 and will include six or seven 2-megawatt generators, which will be located on hilltop land to the north of the Company's Panasqueira tungsten mine. The electrical power generated will be directed to the national grid.

Under the terms of the agreement, originally signed in July 2001, Enernova will pay the Company's wholly owned subsidiary, Beralt Tin and Wolfram (Portugal) S.A. ("Beralt"), EUR 65,000 (CDN$100,000) upon the start of construction. A further EUR 500,000 (CDN$750,000) will be payable upon start-up of the generators, scheduled for the first quarter of 2009.

Beralt has been receiving EUR 4,000 (CDN$6,000) per annum to reserve the area for Enernova's use since 2001. After start-up and during the 25-year term of the contract, Beralt will be paid EUR 27,500 (CDN$41,000) annually plus a further EUR 2,000 (CDN$3,000) per megawatt of installed capacity.

Primary Metals Inc., through Beralt, owns a 100 percent interest in the Panasqueira tungsten mine in Portugal and is currently producing some 100,000 MTUs of tungsten trioxide in concentrates per annum. Tungsten is currently trading at around US$260 per MTU. 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 completion of third party undertakings, 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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