Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

March 16, 2007 13:11 ET

Primary Metals Reports Progress on Argimela Tin Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2007) - Primary Metals Inc. (TSX VENTURE:PMI) (the "Company" or "Primary") is pleased to report progress regarding its Argimela tin deposit in eastern Portugal. The Company holds a licence for Argimela where historical exploration has demonstrated a large tonnage of low-grade tin mineralisation (see News Release dated April 6, 2006). Records indicate that the historical work assessed only the potential for oxide tin in the form of cassiterite and no analysis for tin in the form of sulphides was undertaken.

Recent work by the Company on samples of drill core from three holes drilled by the Portuguese State Mine Department between 1976 and 1979 has confirmed that tin sulphide mineralisation in the form of stannite does occur in the deposit together with the tin oxide cassiterite. Core from three drill holes, which totalled 1,523 metres in length and showed mineralization throughout, was examined and split for analysis. So far, results available from 135 samples indicate that the total tin content is about 30% higher than the oxide tin content. Further analytical work is underway.

Analysis for oxide tin was undertaken at the Company's assay laboratory at its Panasqueira mine in Portugal using standard wet chemical techniques. In addition, the samples were assayed for total tin using X-ray fluorescent spectroscopy at the Portuguese State Instituto Nacional de Engenharia, Tecnologia e Inovacao ("INETI"). This technique is semi-quantitative and therefore the results should only be considered as indicative, serving to demonstrate the additional potential for tin values in the deposit.

In addition, the lithium minerals ambligonite and triphylite have been identified. The lithium content of the samples appears to be significant and the economic potential for lithium in the deposit is under review.

A historical (1979) estimate indicated a near-surface open pit resource of 77.6 million tonnes grading 0.057% Sn (tin), including 18.4 million tonnes with a grade of 0.084% Sn based on old mine workings and drill holes. This estimate pre-dates NI 43-101 and is considered historical in nature (see News Release dated April 6, 2006). The London Metal Exchange daily official price for tin is currently around US$13,650 per tonne. Any improvement in tin content, resulting from previously unreported stannite values and potential lithium values, could significantly improve the economics of the deposit.

The Argimela tin deposit exists in schists with mineralization in several sub-vertical quartz veins, varying in width from five to 30 centimetres, with a one-metre frequency and abundant veinlets and stockwork. Past drill holes show that this frequency of veins continues to depth. The historical estimates noted previously include material from surface to an average depth of 155 metres below surface. There are historical indications that mineralization continues to greater depths.

Analytical work is continuing on available core samples and a preliminary core drilling programme of 560 metres is underway. The Company will also continue to assess the metallurgical aspects and the economic potential of the Argimela tin deposit and is currently considering possible options with respect to potential joint ventures.

About Primary Metals

Primary Metals Inc. is a TSX Venture Exchange listed company which owns 100% interest in the Panasqueira tungsten mine in Portugal, currently producing wolframite concentrates containing some 100,000 MTU's of tungsten trioxide per annum (1 MTU equals 1 metric tonne unit or 10 kilograms). The mine has operated almost continuously for 110 years. Further information may be found on the Company's website at www.primarymetals.ca and on SEDAR at www.sedar.com.


On Behalf of the Board of Directors,

James Robertson, P. Eng., Director

James Robertson, P. Eng., is a Qualified Person for Primary Metals Inc. and has reviewed and approved the information contained in this release. The historical resource estimates provided in this release are presented in a report dated July 18, 1979 on the Argimela Tin Prospect by Dan D. Greig for Essex Minerals Co., a subsidiary of United States Steel Corporation utilizing extensive information dating back to the 1960's.

This News Release contains forward-looking statements respecting the company's expectations as to the future price of tin, its planned work program, and potential mineralization, resources and reserves. Such statements are based on certain assumptions, including that recent demand for tin will continue or increase without a corresponding increase in alternate sources of supply, availability of capital, equipment and personnel to carry out the planned work program and accuracy within a reasonable range of reported historical exploration 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. 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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