Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

August 19, 2005 14:09 ET

Primary Metals Inc.: New Low Profile Mine Equipment Arriving at Panasqueira

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 19, 2005) - Further to a News Release dated June 15, 2005, Primary Metals Inc. (TSX VENTURE:PMI) ("Primary") announces that the planned acquisition of new mine equipment has been completed. Three new low profile LHD ("Load/Haul/Dump") underground mining units are arriving at the Company's operating Panasqueira tungsten mine in Portugal together with two low profile jumbo boom underground drilling rigs. A third low profile jumbo drill rig is scheduled to arrive by the end of October at which time all planned mine equipment acquisitions will be on site and the entire mine will be operated using new, low profile equipment.

The advantages of using the low profile equipment include mining less waste rock and, together with improvements in operating schedules and efficiencies, result in the delivery of an increased tonnage of higher grade tungsten material to the processing plant. Delivery of these new mining units has been earlier than expected and will enable the Company to take greater advantage of the current, high tungsten prices when operations resume by the end of this month, following the scheduled annual August vacation period.

In addition, underground development drilling will be underway at that time, followed by new underground dumper units for additional underground mine development. The acquisitions are being funded by a combination of lease-to-own arrangements and cash from current operations.

The mine hoist from Level 3, where much of the current mining activity is focussed, to Level 2 where the mined ore is crushed and conveyed to surface, is also being rebuilt and re-cabled in preparation for extended hours of operation at the end of this month. Approximately one third of the underground conveyor belt is also being replaced with new material.

The processing plant is also being refurbished and mill availability has been increased from two to three shifts per day, five days per week. New processing equipment has been ordered for delivery later this fall; an increase in tungsten recovery is expected as a result at that time.

The capital expenditures for this current initial phase of mine improvement and new development total US$1.5 million to date. Further expenditures are planned to improve efficiencies and production levels and to undertake further mine development including completion of access to Level 4, which is 90 metres below the current Level 3 mining Level, and will provide tungsten ore in future years.

The Panasqueira mine has a long history of production of high quality wolframite concentrates and is a dominant producer of tungsten concentrates outside China. Recent news releases and further information concerning Primary is available on the Company's website at www.primarymetals.ca and under Primary'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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