Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

June 13, 2007 15:03 ET

Primary Metals Reports Improvements at Panasqueira Tungsten Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2007) - Primary Metals Inc. (the "Company") (TSX VENTURE:PMI) is pleased to report initial improvements at its Panasqueira tungsten mine as a result of the recent introduction of plans to increase profitability. Operations have been proceeding well and are starting to show results, with May figures showing an overall increase in tungsten concentrate production resulting from a modest increase in the mined ore grade and slightly improved mining rates.

Tungsten production for the month of May increased to 9,708 MTUs of WO3 compared to an average rate of 9,051 MTUs per month for the four prior months, a 7% improvement (1 MTU equals 1 metric tonne unit or 10 kilograms). The mined ore grade during May was higher, averaging 0.18% WO3 (tungsten trioxide), an improvement over the low of 0.16% WO3 experienced in February and the average grade of 0.17% for the prior four months. Mining rate was also slightly higher at 66,775 tonnes for the month compared to an average rate of 65,371 tonnes for the prior months.

"These improvements are considered a first step in the direction of increasing profitability and, although small, are very encouraging," said Lewis Black, Chairman of the Company. "We believe that our mine plans are based on a solid foundation and will lead to a long and healthy life for Panasqueira. The expenditures that we have made on equipment and refurbishment of the mine are starting to show results and we are optimistic about continued improvements."

The mine has also made reductions in labour costs since the beginning of this year and the work force now stands at 281 compared to 315 personnel at the end of 2006 as a result of the reduced number of contract workers. This has been accomplished as a result of improved efficiencies of the mine equipment and a reduction in mine development activities following the completion of the new D9 underground ramp between mine Levels 2 and 3 to access new tungsten zones. The required ongoing mine development work will continue at a reduced rate and the dilution effects of the lower grade development ore are expected to be similarly reduced.

A full fleet of low profile underground mining equipment has recently been introduced in the mine for use on Level 3, the main mining level. This is expected to reduce stoping height wherever possible from a typical historical level of 2.2 metres to around 2.0 metres by year end, thereby reducing the amount of dilution caused by mining excess waste rock. The overall effect is expected to result in an improvement in mined ore grade and a reduction in operating costs.

Recently estimated Proven and Probable Reserves and Indicated Resources total 5,130,000 tonnes with a grade of 0.261% WO3 and containing 1,340,000 MTUs of tungsten trioxide. 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 US$255 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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