Matamec Options Two Adjacent Properties to Their Matheson JV Gold Project

Last Update: 10/28/2010 11:36:48 AM

MONTREAL, QUEBEC, Oct 28, 2010 (MARKETWIRE via COMTEX) -- Matamec Explorations Inc. ("Matamec" or the "Company") (MAT) is pleased to announce that it has optionned two adjacent properties to the Matheson JV gold project from residents in Timmins within the Timmins gold camp.

HIGHLIGHTS OF THE PRESS RELEASE

- Option on two new adjacent properties to the Matheson JV gold project with Goldcorp;

- A forthcoming resource update for the Kipawa rare earth-yttrium-zirconium deposit is expected as soon as the overlimits from the last summers' drilling campaign will be received.

Andre Gauthier, president de Matamec considers that the "addition of these two properties, along the extension of the high-grade Hoyle Pond gold mine, consolidate the ground positioning of the Mathson JV project, where the company has been exploring since the spring of 2008 with Goldcorp". He adds that: "the company is exploring two major projects, namely Zeus and Matheson JV, where the sought after metals, rare earths and gold, have had the favour of the markets for over a year now".

The terms of the two agreements are as follows: an initial payment of $5,000 and 20,000 company shares upon signing, on the second anniversary another $5,000 payment and 20,000 company shares, on the third anniversary, a $10,000 payment and 20,000 shares, on the fourth anniversary a $20,000 payment and 20,000 shares and on the fifth anniversary a payment 0f $40,000 and 20,000 shares. As well, a 1% Net smelter return "NSR" royalty is granted to the owners whereby Matamec shall have a right of first refusal to purchase the net smelter return royalty or any part of the royalty interest.

Exploration and mine development work along the "New Mine Trend" has been on-going with fervour since mid-2009 by, amongst others, Goldcorp and Lake Shore Gold Corporation. At the Hoyle Pond mine, Goldcorp have recently announced the advancement of the underground shaft sinking to give them access to newly discovered gold zones at depth, and thus continue their exploration to the south and to the east. The Hoyle Pond mine is situated 1.7 kilometres west of the Matheson JV property. The latter property, where Matamec is pursuing the exploration in partnership with Goldcorp, covers the eastern extension of the rocks that are host the mineralization at the Hoyle Pond mine.

Kipawa rare-earths-yttrium-zirconium deposit

The work is on-going on the flagship rare-earths-yttrium-zirconium Zeus property of which the Kipawa deposit constitutes the main target. The complete results of the 20 drill holes completed last summer on the central part of the deposit should be known soon. As soon as the overlimit results are received, the resource update will be completed by the firm of SGS Canada Inc. - Geostat geological group.

Aline Leclerc, geologist (OGQ and APGO) and vice-president Exploration for Matamec, is the qualified person for the technical writing of this press release.

About Matamec

Matamec has an exploration strategy based on the discovery of gold deposits within the Timmins mining camp in Ontario, of which the main target is the Matheson JV property with Goldcorp Canada Ltd and Goldcorp Inc. In Quebec, the company is exploring for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.

Concurrently with the above mentioned exploration programs, Matamec's Quebec Tansim property is also being explored for rare metals such as lithium, tantalum and niobium.