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News Releases - Thursday, May 03, 2007
Primary Metals Completes ?9.1 Million in Mine Improvements
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Primary Metals Inc. ("Primary" or the "Company") is pleased to report
the completion of planned mine improvements at its Panasqueira tungsten
mine in Portugal. Capital expenditures on improvements totalled ?9.1
million (C$13.7 million) over the past two fiscal years and included
major acquisitions of new mining and processing equipment, as well as
development of the new underground D9 mine ramp to access new tungsten
reserves.

The commitment to these improvements over the past two years has
created a solid foundation for the continued long-term operation of the
mine. Management's decision has been justified by the recent
announcement of increased tungsten reserves at the mine (see News
Release dated March 29, 2007). The combined proven and probable
reserves and indicated resources now total over five million tonnes
with a grade of 0.261% WO3 (tungsten trioxide) containing 1.34 million
MTU of WO3 (1 MTU = 1 Metric Tonne Unit or 10 kilograms. The current
tungsten price is around US$260 per MTU). There is also an additional
inferred resource and extensive exploration potential at Panasqueira.

Planned expenditures for the fiscal year ending March 31, 2008, are
budgeted at ?800,000 (C$1.2 million), a significant reduction in cash
requirements compared to the previous two years. Capital expenditures
include purchases of minor equipment, improvements in underground mine
crushing and development activities, building maintenance and
miscellaneous items.

Capital expenditures during the past two years have included
acquisition of Europe's largest fleet of low profile underground mining
equipment including six low profile LHD (load, haul, dump) units and
five low profile underground jumbo drilling rigs. The fleet is now
fully operational on Level 3 of the mine, the main production level,
and the original equipment is being used on mine Level 2.

A new development programme to access new tungsten ore has been
addressed with the completion of the D9 ramp between Levels 2 and 3 of
the mine. Historically, development work at the mine had been neglected
due to limited cash flow during an extended period of low tungsten
prices. This situation has now been resolved, with tungsten prices
tripling since 2004.

The underground mine hoist has been refurbished with new cables and the
underground conveyor belt has been replaced. A new fine ore storage bin
has also recently been completed that triples the ore storage capacity
for the process plant.

The process plant has been refurbished and new equipment, including a
Knelson concentrator, a hydrosizing unit, roll crusher and new duplex
tungsten concentrating tables, and extensive pumps, pipes and spare
parts have been provided to improve the mill efficiency and operating
schedules.

Management is confident in the improved performance and efficiency of
the mine and processing plant and has taken further steps to improve
the profitability of the operation (see News Release dated March 15,
2007). As a result of the reduced requirement for development work, the
labour force at the mine has been reduced from 315 to 285 with plans
for further reduction to 265 by the end of 2007. Greater selectivity of
mining will be possible with the new equipment and the completion of
the D9 development ramp, and an increase in mined ore grade is expected
compared to recent levels. Tungsten prices remain strong and management
anticipates some increase in demand and tungsten price in the future.
Overall, these factors should combine to result in improved
profitability, as well as an extended life, at the Panasqueira tungsten
mine.

Primary Metals Inc. owns a 100 percent interest in the Panasqueira
tungsten mine in Portugal and is currently producing some 100,000 MTUs
of tungsten trioxide in concentrates per annum. 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 www.sedar.com and on the
Company's website at www.primarymetals.ca

On Behalf of the Board of Directors,

"James Robertson"
______________________
James Robertson, P. Eng., Director

For further information contact:
Vancouver Office:
James Robertson
Phone: 604.669.8988
Email: info@primarymetals.ca
Website: www.primarymetals.ca

Investor Relations:
Jamie Mathers, Ascenta Capital Partners Inc.
Phone: 604.628.5800 extension 236
Toll free: 1.866.684.4209
Email: jamie@ascentacapital.com

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

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

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Copyright (c) 2007 PRIMARY METALS INC. (PMI) All rights reserved. For
more information visit our website at http://www.primarymetalsinc.ca/
or send mailto:info@primarymetalsinc.ca
Message sent on Wed May 2, 2007 at 3:55:48 PM Pacific Time
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