Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

July 18, 2007 14:04 ET

Primary Metals Maintains Improvements at Panasqueira

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2007) - Primary Metals Inc. (TSX VENTURE:PMI) (the "Company") is pleased to report that June results at the Panasqueira tungsten mine continue to confirm the initial improvements previously reported for May (see news release dated June 13, 2007). A further modest increase in tungsten concentrate production for June is reported and the higher mill feed grade has been maintained. The results show a continued improvement in comparison to the first four months of the year and also compare favourably with the May results.

Tungsten production for the month of June increased to 9,868 MTUs of WO3 (tungsten trioxide) compared to an average rate of 9,051 MTUs per month for the first four months of the year (1 MTU equals 1 metric tonne unit or 10 kilograms). This is a 9.0% improvement and an additional increase over the 9,708 MTUs produced in May. The mined ore grade during June maintained the improvement to 0.18% WO3 that was demonstrated in May. This continues to show an improvement over the grade of 0.16% WO3 experienced in February and the average grade of 0.17% for the first four months of the year. The mining rate was also slightly higher at 67,921 tonnes for June. This compares favourably to an average rate of 65,371 tonnes for the first four months of the year and the 66,775 tonnes in May.

"We are pleased that our June results confirm the modest improvements reported for May," said Lewis Black, Chairman of the Company. "We are very pleased with the work and commitment of our management and production team and look forward to a continuation of these improvements."

Recently estimated Proven and Probable Reserves and Indicated Resources at Panasqueira total 5.13 million tonnes with a grade of 0.261% WO3 containing 1,340,000 MTUs of tungsten trioxide. The Proven and Probable Reserves and the indicated resources, if converted to Reserves, would provide approximately 8.5 years of plant feed at current rates, assuming tungsten prices near current levels or higher. All of the reserves are accessible from existing workings; some of the resources will require additional mine development for access. In addition, there are a further 1.8 million tonnes of Inferred Resources with a grade of 0.224% WO3, as well as additional exploration potential. These independent estimates are compliant with NI 43-101 (see news release dated March 29, 2007). Tungsten prices are currently around US$245 per MTU.

About Primary Metals

Primary Metals Inc. owns a 100 percent interest in the Panasqueira tungsten mine in Portugal and 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 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 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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