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Re: News Releases - Thursday, March 29, 2007
Primary Metals Announces Increased NI 43-101 Resource Estimates
for Panasqueira Tungsten Mine
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VANCOUVER, BRITISH COLUMBIA -- Primary Metals Inc. (TSX-V:PMI)
("Primary" or the "Company") is pleased to announce the completion of
new resource estimates for its 3,000 tonne per day Panasqueira tungsten
mine operating in Portugal. The 2007 figures result in an increase in
reserves and resources and an increase in grade compared to the 2006
estimates (see News Release dated June 23, 2006 and Technical Report
filed on www.sedar.com in August 2006).

The total Proven and Probable Reserve estimate has increased to 2.43
million tonnes with a grade of 0.243% WO3 (tungsten trioxide) compared
to the 2006 estimate of 1.39 million tonnes with a grade of 0.233% WO3.
This shows an increase of one million tonnes together with a small
increase in the tungsten grade of the reserves. The Proven and Probable
Reserves estimates combined with the Indicated Resource estimates total
5.13 million tonnes, an increase from the 4.65 million tonnes estimated
in 2006. The proven and probable reserves are sufficient to provide
feed to the process plant for four years at the current operating rate
of 600,000 tonnes per year, assuming tungsten prices near current
levels or higher and the indicated resources, if converted to reserves,
would provide a further 4.5 years of plant feed. All of the reserves
are accessible from existing workings; some of the resources will
require additional mine development for access.

Estimated Proven and Probable Reserves total 2,430,000 tonnes at a
grade of 0.243% WO3 (containing 590,000 MTU tungsten) with additional
Indicated Resources of 2,700,000 tonnes at a grade of 0.277% WO3 and
containing a further 748,000 MTU tungsten (1 MTU = One Metric Tonne
Unit or 10 kilograms of contained WO3. The mean quoted European price
for tungsten is currently US$260 per MTU of WO3). 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.

Together, the Proven and Probable Reserves and Indicated Resources
total 5,130,000 tonnes with a grade of 0.261% WO3 and contain 1,340,000
MTUs of tungsten trioxide.

"We have recently completed our new D9 development ramp between mine
Levels 2 and 3 to start opening up the new reserves. The additional
information resulting from this work has enabled upgrading of nearly
one million tonnes of indicated resources to the Probable Reserve
category," said Lewis Black, Chairman of the Company. "These new
estimates, together with our recently announced plans to reduce mine
costs and increase revenues, confirm our confidence in continuing to
invest in the long term future of the Panasqueira mine. The presence of
wolframite in the newly-developed D9 area of the mine opens a large
under-explored area of Levels 2 and 3 from D9 all the way to the
northern PanDeep area of the Panasqueira mine," he stated. "We also
anticipate continued strength in tungsten prices."

These estimates are based on data available on January 1, 2007 and are
compliant with National Instrument (NI) 43-101. They were prepared in
conjunction with mine staff by David Gunning, P. Eng. of OreQuest
Consultants Ltd. OreQuest is an independent consulting firm based in
Vancouver, British Columbia with over 20 years of experience
specializing in minerals exploration, production and evaluation and
with extensive experience in all aspects of NI 43-101.

The reserve and resource estimates are summarized as follows:



CIM STANDARD RESERVE CLASSIFICATION 2007
RESERVE AND RESOURCE Level Tonnes % WO3 Contained
CLASSIFICATION WO3 (MTU)
RESERVES
Proven Reserves L2 113,461 0.262 29,701
L3 354,871 0.254 90,043
TOTAL PROVEN RESERVES 468,332 0.256 119,744
Probable Reserves L3 D15 South 1,007,000 0.225 227,000
L3 D15 North 954,000 0.255 243,000
TOTAL PROBABLE RESERVES 1,962,000 0.239 470,000
TOTAL PROVEN AND PROBABLE RESERVES 2,430,000 0.243 590,000
RESOURCES
Measured Resources (low grade) L2 17,000 0.090 1,500
L3 153,000 0.095 14,500
TOTAL MEASURED RESOURCES 170,000 0.095 16,000
Indicated Resources L2 D15-D1 1,218,000 0.241 294,000
L3 D15-D1 201,000 0.256 51,000
PanDeep 1,280,000 0.315 403,000
TOTAL INDICATED RESOURCES 2,700,000 0.277 748,000

Inferred Resources L2 D15-D1 275,000 0.307 84,500
PanDeep 305,000 0.218 66,500
L4 1,230,000 0.207 254,000
TOTAL INFERRED RESOURCES 1,810,000 0.224 405,000

Notes:

All of the reserves and resources are based on a cutoff grade of 0.165%
WO3. All of the reserves and resources are fully diluted to a
historical mining height of 2.2 metres and are reduced by a factor of
84% which is the extraction rate using the room and pillar method at
Panasqueira. Reserves in pillars are further reduced depending on the
percentage available for extraction. Areas of influence for drill holes
are squares of 100 or 70 metres (with the drill hole at the center of
the square) depending on the vein thickness. Based on experience,
indicated resources and probable reserves defined by drilling are
reduced by a factor of 60%, the factor is 40% for Inferred resources.
Totals may not add due to rounding. Mineral resources that are not
mineral reserves do not have demonstrated economic viability based on
available information.

The Panasqueira mine has increased throughput dramatically in the last
two years to capitalize on increased tungsten prices. This has come
immediately after several years with minimal exploration and
development in a time of low tungsten prices. The lack of development
has resulted in reserves being mined before they are developed and
lower than ideal head grades have resulted. In order to alleviate these
problems, management initiated development and exploration programs in
2006 to ensure future production forecasts would be met.

Exploration in 2006 was conducted from surface to explore the southwest
portion of Level 3 as well as infill underground drilling in the
Panasqueira deep area from Level 1. Drilling in both campaigns has been
successful in indicating resources. The new resources found in the
southwestern part of Level 3 were almost completely extracted during
the past year as this area has been the principal production area over
the past few years.

Drilling from Level 1 in the northern area of the mine known as
Panasqueira Deeps ("PanDeep") was also successful in indicating
resources. Eleven holes were drilled vertically to fill gaps in
historic data to depths of 60 metres. This program resulted in the
expansion of the PanDeep resources from 874,000 tonnes of indicated
resources at a grade of 0.267% WO3 with an additional 159,000 tonnes of
inferred resources at a grade of 0.181% WO3 to 1.28 million tonnes of
indicated resources at a grade of 0.315% WO3 with an additional
inferred resource of 305,000 tonnes at a grade of 0.218% WO3.

The summer of 2006 saw the start of development of the D9 ramp, which
has been driven from the Level 3 access ramp through to Level 2. A
significant indicated resource of 1.16 million tonnes grading 0.283%
WO3, was included in the 2006 estimates in this area of the mine in
Level 3, most of which has now been converted to the probable reserve
category with the exception of 200,000 tonnes which is located below
the current ramp access.

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. 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

In addition to operating the Panasqueira tungsten mine, the Company is
assessing the potential of its nearby Argimela tin deposit and its
Quinta/Banjas gold property, also located in Portugal.

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: 604.684.4743 extension 236
Toll free: 1.866.684.4743
Email: info@ascentacapital.com

The TSX Venture Exchange does not accept responsibility for the
adequacy or the accuracy of this release.
David Gunning, P. Eng. and George Cavey, P. Geo. are Independent
Qualified Persons for Primary Metals Inc. and have reviewed and
approved the contents of this release. In accordance with NI
43-1014.2(1)(j) the estimates do not constitute a material change in
respect to the affairs of the Company and there is not an obligation to
file a Technical Report in connection with the disclosure herein.

The Panasqueira mine is in full production regularly shipping
concentrates of tungsten trioxide to its customers. Specific Quality
Control/Quality Assurance ("QC/QA") procedures such as those utilized
in base or precious metal mines are not in place at the mine. Instead
Panasqueira assesses the performance of the assaying facility and the
scales used to measure weights by comparing the mine assays with the
check assays completed by their customers. To date the customer assays
and company assays have been similar which forms a reliable test of the
production procedures related to QC/QA that are in place at the mine.

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

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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 Thu Mar 29, 2007 at 4:36:29 PM Pacific Time
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