TORONTO, ONTARIO--(Marketwire - May 11, 2012) - Primary Corp. (TSX:PYC) ("Primary" or the "Company") announces that it has reported a total comprehensive loss for the quarter ended March 31, 2012 of $7.5 million. The loss was largely due to the previously announced writedown of $8.4 million in the Company's investment in Neutron Energy Inc. As of March 31, 2012, the Company had total assets of $110.7 million, liabilities of $3.2 million, shareholders' equity of $107.5 million and a net asset value per share of $5.56. The financial statements along with management's discussion and analysis can be found on SEDAR ([ www.sedar.com ]) or on Primary's website ([ www.primarycorp.ca ]).

The Primary portfolio maintained a defensive stance despite the improvement in markets. Cash positions were roughly 40 percent of the portfolio. During the quarter the Company evaluated several potential senior secured lending opportunities (with equity warrants) involving many different commodities. Primary did not, however, complete any transactions. The most common reason was that the projects were almost universally too early in the development process for the Company to consider an investment. Most projects were looking for capital to fund feasibility studies, engineering reports, etc, while the Company is interested in providing capital for the last 20-25% of construction or infrastructure (rail and port) facilities supporting the project. The Company believes that it will see many more opportunities than it wishes to invest in over the next two to three years. Inherent in this view is a belief that financial markets will exhibit elevated volatility and generally make it difficult to raise capital for high quality resource development projects. The performance of small cap resource equities in Q1 2012 suggests that this process may already have begun.

As the opportunity to invest in the type of projects that the Company is seeking did not materialize, it has kept the portfolio very liquid, either in cash or shorter duration, higher quality high yield bonds. What equity exposure the portfolio has was focused on the precious metals sector, an area which did not perform well during the quarter.

The Company expects volatility to remain for some time and accordingly plans to maintain a defensive stance.

The Company previously announced that, in conjunction with Marret, it had commenced a formal review of its corporate structure. This review is ongoing.

About Primary Corp.

Primary trades on the Toronto Stock Exchange under the symbol PYC. Primary is focused on natural resource lending. Primary's business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource-related businesses and investing in public and private equity and quasi-equity securities. Primary seeks to generate income primarily from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances.

Marret Asset Management Inc. is responsible for implementing Primary's investment strategy and managing Primary's investment portfolio.

About Marret Asset Management Inc.

Marret is an employee-owned firm based in Toronto and has over $5.9 billion of assets under management. Marret and its experienced team of investment professionals led by Barry Allan specialize in fixed income and, particularly, in high yield debt strategies.

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Forward-Looking Information

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the anticipated use of the net proceeds of the Offering. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such risks include, but are not limited to, market conditions and the other risks identified in the short form prospectus dated June 23, 2011 and the Company's annual information form, in both cases under the heading "Risk Factors". There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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