Primary Metals Inc.
TSX VENTURE : PMI

Primary Metals Inc.

September 28, 2005 17:52 ET

Primary Metals to Exercise Option for Peruvian Tungsten Company

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - Primary Metals Inc. (TSX VENTURE:PMI) ("Primary" or the "Company") announces its intention to exercise an option (the "Option") to acquire a 66 2/3% interest in Minera Malaga Santolalla S.A. ("Malaga"), a Peruvian company owning the Pasto Bueno tungsten mine in northern Peru. The Pasto Bueno tungsten mine is the subject of a letter of intent under which Dynacor Mines Inc. ("Dynacor"), a TSX Venture Exchange listed company, has announced plans to acquire 100% interest in the mine from Malaga for US$1,250,000 and other considerations.

Primary holds the Option in Malaga through its wholly owned subsidiary, Beralt Ventures Inc. ("Ventures"). Consideration for completion of the acquisition is US$1 payable to the shareholders of Malaga. Ventures previously held an 80% interest in Malaga, which interest was transferred to the current owners in exchange for the option to re-acquire a 66 2/3% interest at a nominal cost.

The Pasto Bueno mine has operated intermittently from 1939 to 2003. A 250 ton per day and an 800 ton per day mill are located on the property. It has been reported that records from the Pasto Bueno mine indicate an average production grade during the last year of operations of 1.5% tungsten trioxide (WO3) and 2.7% copper.

About Primary Metals

Primary is a company listed on the TSX Venture Exchange and owns 100% interest in the Panasqueira tungsten mine in Portugal, currently producing some 120,000 MTU's of tungsten trioxide per annum (1 MTU equals 1 metric ton unit or 10 kilograms). Significant recent increases in tungsten prices together with current mining activities and improvements have resulted in a profitable first quarter for the Company with reported earnings of C$1,976,984 or C$0.20 per share (see Primary News Release dated August 24, 2005).

On Behalf of the Board of Directors,

James Robertson, P. Eng., Director


The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

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