Primary Metals Inc.

Primary Metals Inc.

March 15, 2007 15:05 ET

Primary Metals Reports Plans for Panasqueira Tungsten Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) - Primary Metals Inc. ("Primary" or "Company")(TSX VENTURE:PMI) is pleased to report progress at its Panasqueira tungsten mine in Portugal. Excavation of the new D9 ramp that has been developed between mine Levels 2 and 3 to access new resources has now been completed. Preparation for mining is underway and stoping of the new zones using the Company's new low profile mining equipment is expected to commence later this year.

As a result of opening new areas for mining, the Company expects to see continued gradual improvement in mined ore grade. The grade has been approximately 0.17% WO3 (tungsten trioxide) in recent months, significantly lower than the grade of 0.233% WO3 for proven and probable reserves reported in the Company's independent NI 43-101 estimates of 2006 (see news release dated June 19, 2006, and the Technical Report filed on The lower grade has resulted from the treatment of development material of marginal grade plus the lack of sufficient working areas that resulted from insufficient mine development in past years.

One of the objectives during the past two years has been to address mine development and the assurance of sufficient reserves and resources for mining over the next eight years or more. New mine estimates are expected to be released before the end of this month. Work has also resulted in an improved definition of areas for stoping.

As a result of completion of much of this work, it is planned that development work will be reduced from 200 metres per month to around 120 metres per month and that stoping of reserves will be more selective using exclusively the full fleet of low profile mining equipment recently introduced at the mine. The target is to reduce stoping widths from the historical 2.2 metres to 2.0 metres by the end of the year, resulting in a reduction of mine dilution throughout mine level 3. It is expected that these changes will result in a reduction in the mine's labour force from 315 to 285 people by April 2007, with further expected reductions to around 260 people by year end.

In the processing plant, a new hydrosizer is now operating and new duplex tables are in place ready for commissioning. This is expected to improve the mill's efficiency and result in a small but important increase in the process plant's recovery of tungsten.

Overall, these improvements and the plans for the year are expected to effect a reduction of costs while maintaining current concentrate production levels at the Panasquiera mine, thus resulting in increased earnings.

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 (1 MTU equals 1 metric tonne unit or 10 kilograms) with further improvements underway. Tungsten is currently trading at around US$260 per MTU. 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 and on the Company's website at

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

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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