Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

August 24, 2005 18:36 ET

Primary Metals Reports First Quarter Earnings of C$0.20 per Share

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2005) - Primary Metals Inc. ("Primary" or the "Company") (TSX VENTURE:PMI) is pleased to announce financial results for the first quarter ended June 30, 2005. The Company reports earnings for the quarter of Euros 1,261,717 (C$1,976,984) or Euros 0.13 (C$0.20) per share as a result of the strong performance of the Company's Panasqueira tungsten mine and the significant increases in tungsten price.

Highlights for the first quarter of fiscal 2006 include:

- Net earnings of Euros 1,261,717 or C$1,976,984

- Earnings per share of Euros 0.13 or C$0.20

- Increased tungsten sales of Euros 3,693,463 or C$5,787,287

- Increased tungsten concentrate production of 28,546 MTU

- Commencement of a new, multi-year, improved floating price sales contract based on current tungsten price

- Significant increases in tungsten price continuing in the second quarter of fiscal 2006

- Introduction of refurbishment program to update the Panasqueira mine

"We are delighted to see the Panasqueira mine return profitable results for the quarter," said Lewis Black, Chairman of the Company. "We anticipate that our current plans to update the mine will result in significant improvements for the future and maximum returns for the shareholders."

The Company's operating subsidiary, Beralt Tin and Wolfram (Portugal) has recently implemented improvements in the mine and is acquiring additional new low profile mining equipment to increase mining efficiencies. The processing plant is being refurbished and new equipment is being added. The plant currently produces some 120,000 metric ton units ("MTU's") of tungsten trioxide annually (one MTU is equal to 10 kilograms) and these ongoing improvements are expected to result in lower costs of operations and increased productivity.

The Panasqueira mine has a long history of production of high quality wolframite concentrates and is a dominant producer of tungsten concentrates outside China. Results from the first quarter together with the Management Discussion and Analysis of Results and other information are available at www.sedar.com and at the Company's website at www.primarymetals.ca.

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.

Contact Information