Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

August 26, 2005 18:50 ET

Primary Metals Inc.: Investor Relations Consultant Retained; Stock Options Granted

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 26, 2005) - Primary Metals Inc. (TSX VENTURE:PMI) (the "Company") announces that Lewis Black has been appointed Chairman of the Board, Jonathan Carter has been appointed President and Chief Executive Officer and Kerry Spong has been appointed Chief Financial Officer and Secretary. In addition, the Board welcomes Daniel D'Amato and Christopher D'Amato as new Directors of the Company. Daniel D'Amato is a principal of Almonty, LLC, a major shareholder of the Company. He brings extensive experience in finance and marketing to the Company. Christopher D'Amato has a legal background and experience including work with the U.S. Securities and Exchange Commission.

The Company also announces that the shareholders approved an increase in the number of shares reserved for issuance pursuant to the Company's Stock Option Plan (the "Plan") to 2,147,676 shares. A total of 610,000 incentive stock options have been granted under the plan in accordance with TSX Venture Exchange Policy 4.4. to directors of the Company. The options are exercisable for a five-year period at a price of $2.15 per share and are subject to regulatory approval. The options will bear a four-month hold period and are subject to vesting provisions over an eighteen-month period, in accordance with the terms of the Plan.

The Company also announces that it has retained Ascenta Capital Partners Inc. ("Ascenta") of Vancouver, BC to provide investor relations and financial communications services. Ascenta will receive a fee of $5,000 per month for an initial 12-month term and a five-year stock option to purchase 100,000 common shares at an exercise price of $2.15 per share in accordance with TSX Venture Exchange guidelines and the Company's stock option plan. The options will bear a four-month hold period and are subject to vesting provisions over an eighteen-month period, in accordance with the terms of the Plan. This agreement is subject to regulatory approval.

About Ascenta

Ascenta is a leading provider of outsourced investor relations services to Canadian public companies. These services include investor relations planning, investor and media outreach, strategic counsel, and corporate communications.

Primary Metals owns the Panasqueira tungsten mine. The mine is located in Portugal and produces and sells some 120,000 metric ton units of tungsten trioxide (a metric ton unit is equal to 10 kilograms). Further information is available on the company's website at www.primarymetals.ca and under the company's profile at www.sedar.com.

On Behalf of the Board of Directors,

James Robertson, Director


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

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