Primary Metals Inc.

Primary Metals Inc.

June 15, 2005 18:10 ET

Primary Metals Inc.: Multi-Year Tungsten Sales Agreement Signed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 15, 2005) - Further to a related news release on May 31, 2005, Primary Metals Inc. ("Primary") (TSX VENTURE:PMI) is pleased to announce that a multi-year sales agreement has been concluded for the sale of tungsten concentrate from the company's operating Panasqueira tungsten mine in Portugal. The agreement was reached between OSRAM SYLVANIA, one of the world's premier lighting and tungsten product manufacturers, and Beralt Tin & Wolfram (Portugal) S.A.R.L. ("Beralt"), a wholly owned subsidiary of Primary and owner of the Panasqueira tungsten mine.

Under the terms of the agreement, OSRAM SYLVANIA will purchase 100% of the tungsten production from Beralt, subject to a maximum that allows Beralt significant scope for increased production during the life of the contract. The contract pricing for Beralt concentrates is based on market prices for ammonium paratungstate ("APT"). At recent market price levels for APT and other co-products, Beralt's sales revenues could reach US$25 million per annum.

The market price of tungsten has increased significantly from quoted APT prices of around US$95 per metric ton unit ("MTU") of tungsten trioxide ("WO3") in January 2005 to current levels of US$290 per MTU. As a result, Beralt has already embarked on an investment program that will modernize much of the existing mining equipment and infrastructure. All underground mining equipment is being replaced with the latest low profile machinery available, which will bring a significant improvement in mining efficiency, improvement in mine capacity and a reduction in operating costs. The company is also evaluating the introduction of advanced technology for the recovery of ultra fine tungsten particles that would improve the overall recovery of tungsten from the ore dressing plant. In addition, this equipment may be able to recover tungsten from stockpiled fine tailings material known to contain over 300,000 MTU of WO3.


Headquartered in Danvers, Mass., OSRAM SYLVANIA is the North American operation of OSRAM GmbH. Together with its parent company, it is the second-largest lighting and materials enterprise in the world, serving customers in more than 140 countries. OSRAM SYLVANIA manufactures and markets a wide range of lighting products, including automotive, electronic and magnetic ballasts, and precision materials and components for industrial and commercial users, original equipment manufacturers and consumers, sold primarily under the SYLVANIA brand name, but also under the OSRAM brand. The company also offers lighting systems installation and maintenance services. For further information, please refer to the OSRAM SYLVANIA Web site at

About Primary Metals Inc.

Primary Metals Inc. is a publicly traded company that owns the operating Panasqueira tungsten mine through its wholly owned subsidiary, Beralt. Panasqueira is one of the few operating tungsten mines outside China and produces approximately 120,000 MTU's of tungsten trioxide annually in the form of a high quality wolframite concentrate with a workforce of 250 people. Primary is in the process of evaluating additional mining projects for possible acquisition with a view to diversity and growth of the company. There are currently 9,981,718 shares issued, trading on the TSX Venture Exchange under the symbol PMI. Further information is available on the company's website at and under the company's profile at

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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