Matamec Announces Results of Positive Feasibility Study for Kipawa JV Heavy Rare Earth Project

Matamec Announces Results of Positive Feasibility Study for Kipawa JV Heavy 
Rare Earth Project 
MONTREAL, QUEBEC -- (Marketwired) -- 09/04/13 -- Matamec Explorations
Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is
pleased to announce the positive results of the Feasibility Study
("FS") for the Kipawa Joint Venture ("JV") Heavy Rare Earth Elements
Project ("HREE") ("the Project"). The FS was prepared by Roche Ltd.
and GENIVAR Inc. and supported by SGS Geostat and Golder Associates
Ltd. FS results show that the Project is technically and economically
feasible. An analyst's conference call will be held today at 10:00
a.m. ET. All numbers are reported in Canadian dollars unless
otherwise stated.  
The goal of the Kipawa JV is to supply Toyota Tsusho Corp. ("TTC")
with heavy rare earths such as dysprosium which is indispensable for
hybrid and electric vehicles. The JV partners are presently in
discussions and evaluating next steps to advance the project.  


 
     ------------------------------------------------------------------
     KIPAWA HREE PROJECT - FS FINANCIAL MODEL HIGHLIGHTS               
     ------------------------------------------------------------------
     ------------------------------------------------------------------
     Net Present Value (NPV10%) (Pre-Tax)                  $260 million
     ------------------------------------------------------------------
     Internal Rate of Return (IRR) (Pre-Tax)                      21.6%
     ------------------------------------------------------------------
     Revenue                                              $2.55 billion
     ------------------------------------------------------------------
     EBITDA                                               $1.37 billion
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     CAPEX (initial)                                       $374 million
     ------------------------------------------------------------------
     OPEX (annual)                                        $78.5 million
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     Payback Period (Pre-Tax)                                 3.9 years
     ------------------------------------------------------------------
     Life of Mine (LOM)                                      15.2 years
     ------------------------------------------------------------------
     Concentrate Production (annual avg.)                  3,653 tonnes
     ------------------------------------------------------------------
 
--  The Company is committed to bringing the IRR above 25% by continuing to
    reduce the required CAPEX and OPEX, while optimizing the overall
    recovery rate. 

 
"Matamec has achieved a major milestone today in its 16-year history
as the feasibility study shows that the Kipawa project is technically
and economically feasible," said Andre Gauthier, President and CEO of
Matamec. "The Company has strategically developed a solid business
plan which includes a moderate CAPEX and a manageable scale of annual
tonnage while ensuring the required environmental standards are met.
With the completion of the feasibility study results, we will
continue to work with the citizens of the Temiscamingue area to
present the economic benefits this project will create for the
region. Matamec is committed to building a sustainable organization
with a particular focus on green energy applications."  


 
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ECONOMIC SUMMARY OF 2012 PEA VERSUS 2013 FEASIBILITY STUDY RESULTS          
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                                                    PEA        FS           
                                               Quantity  Quantity           
                                                  March    August           
Metric                                             2012      2013       Unit
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Total Mine Revenue                                2.822     2.548  $ billion
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EBITDA                                             1.68      1.37  $ billion
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Pre-production Capital Expenditures (initial)     315.8     374.4  $ million
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Sustaining Capital Expenditures (incl. rehab.)     38.2      37.7  $ million
----------------------------------------------------------------------------
Additional Working Capital Requirement              9.9      11.2  $ million
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Mine Rehabilitation Costs                           7.5      23.1  $ million
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Total Operating Costs                             1.142     1.181  $ billion
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Total Before-tax Cash Flow                        1.335       960  $ million
----------------------------------------------------------------------------
Total Basket Price after discount                 42.08     50.12      $ /kg
----------------------------------------------------------------------------
  HREO(i) Basket Price - concentrate                  -     39.79      $ /kg
----------------------------------------------------------------------------
  LREO(ii) Basket Price - concentrate                 -     10.33      $ /kg
----------------------------------------------------------------------------
Economics (Pre-Tax)                                                         
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  IRR                                              36.9      21.6          %
----------------------------------------------------------------------------
  NPV @ (PEA 5%) (FS 6%)                            811       450  $ million
----------------------------------------------------------------------------
  NPV @ 8%                                          606       344  $ million
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  NPV @ 10%                                         500       260  $ million
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  NPV @ 12%                                           -       191  $ million
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                                 Payback Period     2.4      3.88      years
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Economics (After-Tax)                                                       
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  IRR                                                 -      16.8          %
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  NPV @ (PEA 5%) (FS 6%)                              -       257  $ million
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  NPV @ 8%                                            -       185  $ million
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  NPV @ 10%                                           -       128  $ million
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  NPV @ 12%                                           -        81  $ million
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                                 Payback Period       -      4.12      years
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Mining                                                                      
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  Mineral reserves                                                  millions
                                                  19.00     19.77  of tonnes
----------------------------------------------------------------------------
  Production rate (ore)                                               tonnes
                                                  4,110     3,650    per day
----------------------------------------------------------------------------
  Life of Mine                                     12.9      15.2      years
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Total CAPEX (based on 3,653 tpa)                                       $ /kg
                                                  86.50    102.57     (+18%)
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Total OPEX (based on 3,653 tpa)                                     $ /kg (-
                                                  24.44     21.53       13%)
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Total Operating Costs                             24.44     21.53      $ /kg
----------------------------------------------------------------------------
  General and Administration                                       $ million
                                                   8.84      11.6   per year
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  Mining                                                           $ million
                                                  16.61      18.1   per year
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  Process                                                          $ million
                                                  58.35      48.7   per year
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Total Recovery Rate(iii)                             81        70          %
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  Heavy average                                       -        74          %
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  Light average                                       -        65          %
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(i)HREO - Heavy Rare Earth Oxide (Sm, Eu, Gd, Er, Tb, Dy, Ho, Yb, Tm, Lu and
Y).                                                                         
(ii)LREO - Light Rare Earth Oxide (Ce, La, Nd and Pr).                      
(iii)Samples used for PEA represent only the Western part of the deposit    
whereas FS samples represent the whole deposit.                             
                                                                            
                                                                            
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KIPAWA JV FEASIBILITY STUDY RESULTS HIGHLIGHTS                              
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Environmental and Permitting Process                                        
A complete environmental baseline study will be finalized by fall 2013;     
Environmental and Social Impact Assessment is subjected to the Canadian     
Environmental Assessment Agency, which will be available Q1 2014. The       
project notice to begin the Federal environmental permitting process was    
submitted before the end of Q1 2013 and the official application for the    
Certificate of Authorization to the Provincial "Ministere du Developpement  
durable, de l'Environnement, de la Faune et des Parcs" (MDDEFP) is planned  
to be submitted by winter 2014.                                             
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Social Acceptability                                                        
Since 2009, Matamec has been committed to engaging the Temiscamingue        
communities to include and take into consideration their concerns in the    
development of the Project.                                                 
----------------------------------------------------------------------------
Mineral Resource Estimates                                                  
Total measured and indicated resource now stands at 23.857 million tonnes at
0.407% Total Rare Earth Oxide (TREO) representing 88% of total resource.    
----------------------------------------------------------------------------
Mineral Reserve                                                             
Mine - total projected ore tonnage is 19.8 million tonnes with a TREO       
diluted grade of 0.4105%.                                                   
----------------------------------------------------------------------------
Mining                                                                      
Projected to produce an avg. 1.33 million tonnes of ore per year (3,650     
tonnes per day) and avg. stripping ratio of 0.94 with 15.2 years mine life  
(excluding pre-production period).                                          
----------------------------------------------------------------------------
Metallurgical Plant Site                                                    
The final products of the process plant will be a chloride concentrate of   
HREE and a concentrate of LREO. FS results show a lower recovery compared to
the PEA study, but it also shows that the process is working for the entire 
ore body, and highlights where the process has to be optimized in order to  
improve the recovery. From the previous results, a new Master Composite of  
ore is ready for further piloting planned for fall 2013 to improve the      
process.                                                                    
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  PROJECT DEVELOPMENT - PLANNED NEXT STEPS                               
  -----------------------------------------------------------------------
  Milestone                                                      Timeline
  -----------------------------------------------------------------------
  Second Pilot Plant                                            Fall 2013
  -----------------------------------------------------------------------
  Environmental and Social Impact Study                           Q1 2014
  -----------------------------------------------------------------------
  Environmental Process - Federal and Provincial           Now to Q1 2015
  -----------------------------------------------------------------------
  Development of off-take agreement                                  2014
  -----------------------------------------------------------------------
  Financing CAPEX Process                                            2014
  -----------------------------------------------------------------------
  Detailed Engineering                                   2014 to mid-2015
  -----------------------------------------------------------------------
  Construction of Mine                                 Q1 2015 to Q4 2016
  -----------------------------------------------------------------------
  Start-up of Mining Operation                                    Q4 2016
  -----------------------------------------------------------------------

 
Mr. Gauthier commented, "The Company will work with government
authorities to ensure that all required areas are covered to receive
environmental permits. We have assembled a highly qualified team who
are focused on identifying every risk possible to ensure the
environment is given the utmost respect and protected for future
generations. The Company will continue its outreach efforts with the
community which we have been developing over the past four years to
create greater comprehension and visibility for the project. We
welcome and value the concerns of the citizens of the Temiscamingue
region and look forward to working together in building a sustainable
plan." 
Additional Upside Opportunities for the Kipawa Mine Project 
Matamec has identified a number of opportunities that have the
potential to add additional value to the project. 


 
1.  The second metallurgical pilot plant testwork should be conducted in
    addition to the bench scale and first pilot plant testwork conducted up
    to now. This second pilot plant testwork will be important to confirm,
    prior to detailed engineering, final sizing of some process equipment.
    For the time being overcapacities have been built into the design, but
    it could be reduced during the detailed engineering, pending the pilot
    plant results. The second pilot plant will also help to confirm
    improvements in regards of recovery rates since conservative numbers
    were used for the FS. 
2.  It would be significant to consider some testworks to separate
    individual Rare Earths (RE) to increase the value of the project. 
3.  Depending on the RE market conditions, it will be important to continue
    the evaluation of other LREE concentrates and HREE concentrates
    production scenarios in order to optimize the IRR before detailed
    engineering. 
4.  In the future and when the project is well in progress, testwork can be
    performed to evaluate the possibility to recovering zirconium and other
    minor metal by-products in the RE mineralized zones and in the syenite
    body. 
5.  Mineral resources on the Kipawa deposit can be increased by verification
    of lateral and down dip extensions by drilling. 
6.  From the last results in the FS it is known that there is the potential
    room for improvement in the open pit design when entering the detailed
    engineering phase. 

 
Considering the above mentioned points, the Company strongly believes
it can achieve greater success with bringing the IRR above 25% by
only slightly reducing the CAPEX and OPEX while improving the
recovery.  
Review of the FS Project Development Model 
The FS covers all aspects of project development, including mining,
mineral concentration, hydrometallurgical processing and separation
of heavy and light rare earth as well as all related infrastructure.
Roche developed its capital and operating cost estimates from first
principle capital quotations, estimates from suppliers,
manufacturers, contractors and experience based on comparable
operations in Canada and abroad. The capital and operating cost
estimates were completed to a level consistent with an intended level
of accuracy of +/- 15%.  
Project Location 
The Kipawa deposit is located on the Zeus Property (see map below),
50 km east of the town of Temiscaming and 140 km south of
Rouyn-Noranda, Quebec. All claims are in good standing. Resources are
not subject to any third party royalties. 
To view the map of the Kipawa deposit, kindly click on the following
link: http://media3.marketwire.com/docs/kipawa0904.jpg.  
General Project Infrastructure Description 
About 50 km of the Maniwaki road will be used to access the Kipawa
Project and share with public and other logging companies. Then a 4
km road will be built from the Maniwaki road to reach the process
plant site.  
The Kipawa mining site will consist of the open pit mine, a waste
dump, a low grade stockpile and a high grade truck loading facility.
The mine equipment maintenance facility will also be located at the
mine site. 
The metallurgical process plant site will be located south of the
mine site and south of the Kipawa River and a 10 km haul road will be
built to link the two sites. The metallurgical site will consist of
the ore process plant which will combine the crushing, grinding,
magnetic separation and hydrometallurgical circuits. At this site,
there will also be the administration and service building, a
warehouse and the assay laboratory. 
There will be two dewatered tailing storage facilities; one storage
facility will be for the rejects of the magnetic separation process
located just by the process plant and one other storage facility for
the hydrometallurgical tailing located about 4 km south of the
process plant.  
The employee's parking and the main electrical sub-station will be
located near the town of Temiscaming. In the present study it is
planned to build a 44kV power line along the Maniwaki logging road to
provide power to the mining and processing facilities. 
Geology, Mineralogy and Mineralization 
The ore deposit is defined by three enriched horizons within the
"Syenite Complex", which contains the fifteen rare earths elements
present. The Kipawa Alkaline Intrusive Complex consists of
peralkaline syenite and granite on average is less than 200 metres
thick. It's an elongated, V-shaped body folded around a major
southeast plunging anticline. The west limb of this fold includes the
Kipawa deposit, which is entirely included within the lower syenite
layer of the complex. This mineralized syenite layer is a concordant
sheet 50 to 80 meters thick that gently dips 20 to 30 degrees to the
south-west. The deposit outcrops over 1.4 km along strike with an
additional outcrop discovered 220 m to the north-west during the
summer 2011 exploration campaign. 
Rare earth-yttrium-zirconium mineralization at the Kipawa deposit is
contained in medium grained silicate minerals. Grains are distinct
and generally well crystallized. Three minerals are presently
considered economical in the Kipawa deposit, namely eudialyte (a
sodic silicate), yttro-titanite/mosandrite (titanite silicate) and
britholite (calsic silico-phosphate) for the rare-earth and yttrium,
with minor amounts of apatite also present. Vlasovite/gittensite
(sodic silicates) and eudialyte (sodic silicate) are also considered
for a potential zirconium by-product. 
Three vertically-stacked mineralized zones have been defined based on
their spatial characteristics: the Eudialyte (60% of existing rare
earth-yttrium resources), Mosandrite (25% of existing rare
earth-yttrium resources) and Britholite (15% of existing rare
earth-yttrium resources) zones. Despite their name, the different
zones contain a mix of the potentially economic minerals. The name
simply indicates the dominant REE mineral present in that zone. The
main Eudialyte zone, for example, consists of intermixed eudialyte
(51%) and mosandrite/yttro-titanite (39%) with trace britholite
(10%). It sits near the top of the syenite body and is not associated
with any large calco-silicate horizon. Note that all zones outcrop at
surface. 
The Kipawa deposit contains very low-levels of uranium and thorium in
the main REE-Zr mineralization. Average values of Th (193 ppm, or
0.019%) and especially U (22 ppm, or 0.002%): though higher than in
the surrounding rocks remains very low in the mineralized syenite
portion of the Kipawa deposit. Initial results suggest that most of
the thorium is contained in coarse-grained urano-thorite and ekanite
crystals, while the uranium is disseminated within said urano-thorite
and rare-earth minerals.  
The terms "Mineral Resource" and "Mineral Reserve" are defined in the
CIM Definition Standards - For Mineral Resources and Mineral Reserves
adopted by the CIM council of the Canadian Institute of Mining,
Metallurgy and Petroleum. 
Mineral Resources 
The Kipawa Deposit resource are 10,478,000 tonnes at 0.46% TREO in
the measured category, 13,379,000 tonnes at 0.36% TREO in the
indicated category and 3,268,000 tonnes at 0.31% TREO in the inferred
category. The total of measured and indicated resource now stands at
23,857,000 tonnes at 0.41% TREO representing 88% of the total
resource. These results are at a 0.2% TREO cut-off and are not
limited by an open pit. The overall total tonnage is about 10%
greater than the last resource calculation (see press releases dated
June 30 and July 7, 2011). 
The Kipawa deposit's mineral resource estimates were updated by SGS
Geostat. The drilling done since the 2011 PEA (see press release
dated January 30, 2011) totaling 14,293 m was included and permitted
to outline some measured resources for the first time in the history
of the project. The database now totals 293 drill holes totaling
24,571 m and 13 trenches totalling 631 m. Historical Unocal holes are
not in the count and were not used for the estimates. The mineralized
zones were interpreted on vertical sections and meshed into volumes
as per industry standards. Ordinary Kriging was used to estimate the
block model with block size set at 10 m x 5 m x 5 m. The measured and
indicated resources required drill grids of 25 m and 50 m,
respectively. Resources extrapolated beyond 30 m of those drill grids
are considered inferred.  
Mineral Reserves 
By using SGS Geostat model, the mineral reserve for this FS was
prepared, estimated and supervised by Roche using a cut-off value of
$48.96/t with 5% dilution and a mining recovery of 95.2%. The Kipawa
open-pit design utilized a marginal (or milling) cut-off value of
$48.96/t and a break even cut-off value of $60.70/t. Included in the
reserves are 632,000 tonnes of low grade material lying between these
2 cut-offs values. This material will be sent to a low grade
stockpile, close to the mine site and will be processed at the end of
operation after mine depletion. 


 
               ----------------------------------------------
               In-pit Mineral Reserves          Metric Tonnes
               ----------------------------------------------
               Proven (51.7% of the deposit)       10,219,000
               ----------------------------------------------
               Probable (48.3% of the deposit)      9,550,000
               ----------------------------------------------
               Total                               19,769,000
               ----------------------------------------------
                                                             
               ----------------------------------------------
               Total Grade                                   
               ----------------------------------------------
               Cerium (Ce2O3)                          0.1195
               ----------------------------------------------
               Lanthanum (La2O3)                       0.0588
               ----------------------------------------------
               Praseodymium (Pr6O11)                   0.0146
               ----------------------------------------------
               Neodymium (Nd2O3)                       0.0550
               ----------------------------------------------
               Samarium (Sm2O3)                        0.0123
               ----------------------------------------------
               Europium (Eu2O3)                        0.0015
               ----------------------------------------------
               Gadolinium (Gd2O3)                      0.0119
               ----------------------------------------------
               Terbium (Tb4O7)                         0.0022
               ----------------------------------------------
               Dysprosium (Dy2O3)                      0.0147
               ----------------------------------------------
               Holmium (Ho2O3)                         0.0032
               ----------------------------------------------
               Erbium (Er2O3)                          0.0101
               ----------------------------------------------
               Thulium (Tm2O3)                         0.0016
               ----------------------------------------------
               Ytterbium (Yb2O3)                       0.0096
               ----------------------------------------------
               Lutetium (Lu2O3)                        0.0013
               ----------------------------------------------
               Yttrium (Y2O3)                          0.0943
               ----------------------------------------------
               TREO                                    0.4105
               ----------------------------------------------

 
Design Basis 
The Total Rare Earth Oxides (TREO) diluted grade is 0.4105% including
a dysprosium (Dy2O3) diluted grade of 0.0147%. The calculation is
using a dilution grade of 0.093% TREO. The recoveries for each
element vary from 65% to 74% for a TREO average of 70% for the 10
main REO which are (La2O3, Ce2O3, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3,
Tb4O7, Dy2O3 and Y2O3). A total production of TREO is expected to be
55,529 tonnes over the mine life. When the mine will be in full
production (year 2-15) an average of 3,760 tonnes per year of TREO
will be produced. 
Mining  
The mine will produce an average of 1,332,250 tonnes of ore per year
(3,650 tonnes per day) and has an average stripping ratio (waste :
ore - without the overburden) of 0.94 with a mine life of 15.2 years.
A standard 55 tonne mining truck and shovel operation will bring the
drilled and blasted material out of the mine to their respective
destinations (waste dump, low grade stockpile or high grade loading
facility). Then the ore is transported by 40 tonne HD dump trucks to
the metallurgical plant site.  
Processing 
Once at the metallurgical plant site, the ore will be dumped into a
crusher dump hopper feeding a two stage crushing circuit. The crushed
ore will then be stored into a silo. The crushed ore will feed the
process plant at the rate of 3,650 tpd in a single stage grinding
circuit. A magnetic separation circuit will recover the rare earth as
a first concentrate. The reject from the mag-sep circuit will be
pumped to the dewatering circuit and transported by truck to the
mag-sep rejects storage facility located outside and nearby the
process plant. The magnetic rare earth concentrate will be sent into
the regrind mill followed by a thickening circuit and then to the
hydrometallurgical process (acid leaching, neutralization, impurities
removal and the final precipitation) will then produce the rare earth
carbonate concentrates. This hydromet concentrate will then be
processed through a purification circuit which will remove the last
impurities and also separate the heavies from the lights. The final
products of the process plant are a concentrate of heavy rare earth
and a concentrate of light rare earth. 
The tailings produced from the hydrometallurgical process will be
pumped to a thickening facility located by the hydromet tailings
storage facility (TSF). The solids will be dewatered in few steps
using different technologies and then transported by truck and
disposed mechanically into the TSF. This TSF is thus believed to be
subject to progressive restoration throughout the mine life. Then the
final section is to be restored at the end of the mine life as well
as the other sites with varying infrastructures. The hydromet tailing
storage facility will require further investigation and design work
as the project advances into the next stages. 
A total of 10 MW will be needed to power both the mine site and the
metallurgical site and will be provided by a new power line to be
connected to the Hydro-Quebec network. 
In 2010, testwork at SGS Canada Inc. in Lakefield (Ontario) was
directed toward examining a known recovery process employing
aggressive conditions for extraction of rare earth elements (acid
baked leaching). By early 2011, it had become evident that much less
aggressive conditions than anticipated were possible for the
extraction of the particular minerals present in the Kipawa ore (room
temperature leaching); this allowed a substantial improvement in
simplifying the projected process plant design.  
The present study is based on metallurgical test work results dating
prior to June 1, 2013. A pilot plant was performed during the summer
of 2012 with a Composite of ore taken from a bulk sample coming from
surface trenches. Then a series of variability samples were taken
from trenches and core samples from 18 large caliber drill holes in
order to make eight (8) Composites and also a Global Composite in
order to verify if the process was valid for the entire ore deposit.
Results showed lower recovery compared to the PEA study but it also
showed that the process works for the entire ore body and also where
the process needs to be optimized in order to improve the recovery. 
From these previous results, a new Master Composite representing the
ore body is ready for further piloting which is planned for the fall
of 2013, to further improve the ore processing plant. 


 
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ANNUAL OPERATING SUMMARY                                                    
----------------------------------------------------------------------------
Production                                                Year 2            
                                                           to 15            
                              Unit   Year -1    Year 1    (avg.)   Year 15.2
----------------------------------------------------------------------------
Reserve mined                   Mt     0.022     0.870     1.348       0.000
----------------------------------------------------------------------------
Waste mined                     Mt     0.468     0.928     1.233       0.000
----------------------------------------------------------------------------
Strip Ratio (waste : ore)                          1.1       0.9            
----------------------------------------------------------------------------
Tonnes processed                Mt     0.000     0.884     1.332       0.232
----------------------------------------------------------------------------
Overburden                      Mt     1.328     0.000     0.000       0.000
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Mixed REE concentrate            t         0     2,657     3,759         250
----------------------------------------------------------------------------
Mixed LREE concentrate           t         0     1,507     2,203         146
----------------------------------------------------------------------------
Mixed HREE concentrate           t         0     1,150     1,556         104
----------------------------------------------------------------------------
                                                                            
                                                                            
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ANNUAL PRODUCTION REE LIGHT AND HEAVY CONCENTRATES (t)                      
----------------------------------------------------------------------------
REO                                     Year 2-15                Year 1-15.2
                               Year 1      (avg.)    Year 15.2        (avg.)
----------------------------------------------------------------------------
Light Concentrate                                                           
----------------------------------------------------------------------------
Cerium (Ce2O3)                    727       1,049           69         1,018
----------------------------------------------------------------------------
Lanthanum (La2O3)                 337         541           36           523
----------------------------------------------------------------------------
Praseodymium (Pr6O11)              94         131            9           127
----------------------------------------------------------------------------
Neodymium (Nd2O3)                 349         482           33           469
----------------------------------------------------------------------------
Heavy Concentrate                                                           
----------------------------------------------------------------------------
Samarium (Sm2O3)                   83         113            8           110
----------------------------------------------------------------------------
Europium (Eu2O3)                   11          15            1            14
----------------------------------------------------------------------------
Gadolinium (Gd2O3)                 83         115            7           112
----------------------------------------------------------------------------
Terbium (Tb4O7)                    16          22            1            21
----------------------------------------------------------------------------
Dysprosium (Dy2O3)                106         144            9           141
----------------------------------------------------------------------------
Holmium (Ho2O3)                    24          32            2            31
----------------------------------------------------------------------------
Erbium (Er2O3)                     73          97            7            95
----------------------------------------------------------------------------
Thulium (Tm2O3)                    11          14            1            14
----------------------------------------------------------------------------
Ytterbium (Yb2O3)                  62          81            7            79
----------------------------------------------------------------------------
Lutetium (Lu2O3)                    7           9            1             9
----------------------------------------------------------------------------
Yttrium (Y2O3)                    674         913           60           890
----------------------------------------------------------------------------

 
Capital Cost Expenditures (CAPEX)  
The capital cost estimate covers the development of the mine, ore
processing facilities and infrastructure required for the Kipawa HREE
project based on the application of standard methods of achieving a
feasibility study with an accuracy of +/- 15%. The capital costs have
been estimated at $374.4 million, of which $257.99 million are direct
costs and $67.56 million are indirect costs such as engineering,
procurement, construction management, owner's costs and an overall
15% contingency cost of $48.83 million as outlined below: 


 
---------------------------------------------------------------------------
                                                                      Cost 
Capital Cost Items                                          (Million $ CAD)
---------------------------------------------------------------------------
Off-Site Installation near Temiscaming town                                
---------------------------------------------------------------------------
Main Sub-Station / Hydro-Quebec Power / Parking                        9.76
---------------------------------------------------------------------------
Inter-Site Services                                                        
---------------------------------------------------------------------------
Power line 44kV / Communications / Part of Access road                13.35
---------------------------------------------------------------------------
Mine Site                                                                  
---------------------------------------------------------------------------
Mining Equip / Pre-Prod./ Roads / Shop / ...and other                 41.92
---------------------------------------------------------------------------
Processing Plant Site                                                      
---------------------------------------------------------------------------
Support Infrastructures                                               23.27
---------------------------------------------------------------------------
Process Plant                                                        137.21
---------------------------------------------------------------------------
Fresh Water Supply                                                     4.79
---------------------------------------------------------------------------
Tailing Storage Facilities / Pipelines / Effluent treatment           27.69
---------------------------------------------------------------------------
                                       Plant Site Sub Total          192.96
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
                                         Total Direct Costs          257.99
---------------------------------------------------------------------------
                           Total Indirect and Owner's Costs           67.56
---------------------------------------------------------------------------
                                  Overall Contingency (15%)           48.83
---------------------------------------------------------------------------
                                                Total Costs           374.4
---------------------------------------------------------------------------

 
Operating Cost Expenditures (OPEX) 
The operating cost estimate was made for each step and compiled by
Roche. The operating cost for the Matamec Kipawa operation covers
mining, ore transportation, ore processing, tailings and water
management, general and administration fees as well as infrastructure
and services. The project operating cost estimate is based on the
following main parameters: 


 
--  Tonnes of mineralized rock and waste mined per year: 2.5 million; 
--  Tonnes of mineralized rock milled per year: 1.3 million; 
--  Tonnes of mixed HRE concentrate: 1,516 tpa; 
--  Tonnes of mixed LRE concentrate: 2,137 tpa; 
--  Total manpower required for operation: 229 employees. 

 
The overall operating cost for the Project is estimated at $78.5
million per year or $21.53/kg mixed TREO concentrate. A summary of
the operating costs for the project is shown below: 


 
----------------------------------------------------------------------------
                                                         Unit        Average
----------------------------------------------------------------------------
Net Metal Return (NMR)(i)                          $ /kg TREO          46.97
----------------------------------------------------------------------------
Mining                                             $ /kg TREO           4.97
----------------------------------------------------------------------------
Processing(ii)                                     $ /kg TREO          13.35
----------------------------------------------------------------------------
G&A                                                $ /kg TREO           3.18
----------------------------------------------------------------------------
Cash Costs                                         $ /kg TREO          21.53
----------------------------------------------------------------------------
Production of mixed contained Total Rare                                    
 Earths concentrate                                       tpa          3,653
----------------------------------------------------------------------------
(i)NMR = Grade x Recovery x Revenue                                         
----------------------------------------------------------------------------
(ii)Processing includes tailings management costs                           
----------------------------------------------------------------------------

 
Market Study 
The Rare Earth Elements (REEs) are typically defined as the fifteen
lanthanide elements including yttrium and scandium; they form a group
of technology enabling materials that are critical inputs for a wide
range of everyday consumer products as well as a large number of
cutting edge technologies. Strong magnetic, optical, electronic and
catalytic properties have made certain rare earth compounds
indispensable to a substantial portion of global industry, including
but not limited to the automotive, consumer electronics, medical
equipment and green technology sectors.  
The demand for heavy rare earth materials is expected to benefit from
strong growth, particularly in the case of dysprosium, terbium and
yttrium, which are likely to realize swiftly expanding consumption
from both the permanent magnet and phosphor powder sectors. The
permanent magnet sector (neodymium and dysprosium and to a lesser
degree terbium) is generally forecasted to realize strong gains in
annual consumption through the entirety of the next seven years. The
combination of tightening Chinese supply along with growing demand
suggests terbium, dysprosium and several other HREEs will see
appreciating price levels. Though demand for yttrium is expected to
expand.  
The Rare Earth Oxide prices used for the economic evaluation are
based on a contracted market survey by Asian Metals (one of world's
largest metallurgical information providers) in conjunction with
discussions with key industrial end-users which were important in
defining the forecasted final prices of each rare earth oxide. Other
sources consulted for review of the historical pricing data were
websites and reports from Metal Pages, Roskill Information Service
Limited and Industrial Minerals.  


 
----------------------------------------------------------------------------
REO PRICES - 2016 FORECAST                                                  
----------------------------------------------------------------------------
                         FS Market               REO Price(i)               
                    Price Ex-Works             Ex-Works Mine-  Quantity Sold
                         Mine-Site    Refining          Site      LOM (est.)
Rare Earth Oxides     (US$/kg REO)    Cost (%)   (US$/kg REO)        (t REO)
----------------------------------------------------------------------------
Cerium            Ce         $5.90          30          $4.13         15,479
----------------------------------------------------------------------------
Lanthanum         La         $5.95          30          $4.17          7,952
----------------------------------------------------------------------------
Praseodymium      Pr        $75.40          30         $52.78          1,930
----------------------------------------------------------------------------
Neodymium         Nd        $75.00          30         $52.50          7,132
----------------------------------------------------------------------------
Samarium          Sm         $6.85          30          $4.80          1,679
----------------------------------------------------------------------------
Europium          Eu     $1,100.00          30        $770.00            215
----------------------------------------------------------------------------
Gadolinium        Gd        $59.40          30         $41.58          1,696
----------------------------------------------------------------------------
Terbium           Tb     $1,076.00          30        $753.20            321
----------------------------------------------------------------------------
Dysprosium        Dy       $713.00          30        $499.10          2,137
----------------------------------------------------------------------------
Holmium           Ho        $53.60          40         $32.16            474
----------------------------------------------------------------------------
Erbium            Er        $63.60          40         $38.16          1,063
----------------------------------------------------------------------------
Thulium           Tm     $1,200.00          40        $720.00             32
----------------------------------------------------------------------------
Ytterbium         Yb        $56.70          40         $34.02            555
----------------------------------------------------------------------------
Lutetium          Lu     $1,400.00          40        $840.00             55
----------------------------------------------------------------------------
Yttrium            Y        $29.40          30         $20.58         13,522
----------------------------------------------------------------------------
(i)REO price after deduction of refining and transport - Ex-works Matamec   
 plant-site                                                                 
----------------------------------------------------------------------------

 
Furthermore, the refining cost to reach 99.9% oxides or even higher
purity levels was not evaluated within the FS since refining was not
considered in the scope of the FS. It was decided that since the
forecasted prices are for 99.9% (min.) pure, individual oxides and
Matamec will be producing two mixed Rare Earths concentrates; a mixed
light rare earth concentrate that will contain the following REE's:
Ce, La, Nd and Pr. With the second product, a mixed heavy rare earth
concentrate that will contain the elements of: Sm, Eu, Gd, Er, Tb,
Dy, Ho, Yb, Tm, Lu and Y. The projected selling prices for the
concentrates will be based on their contained oxide pricing and will
be reduced by a refining factor of 30% for the majority of the Rare
Earths, but 40% for the REE's: Ho, Er, Yb, Tm and Lu. The higher
discount was applied considering that these materials would require
more costs associated to process them due to the higher degree of
purity that is required by their associated end uses. It is
considered that the respective discounts will cover all logistical
costs for the material to be shipped to their intended point of
separation. 
The Project is subject to a joint venture agreement (the "JVA")
between Matamec and Toyotsu Rare Earth Canada Inc. ("TRECan"), a
subsidiary of TTC (see press release dated July 12, 2012 for more
details on the JV and the JVA). As at the date hereof, Matamec holds
a 51% and TRECan a 49% interest in the Project (see press release
dated August 8, 2013). The JVA contains a provision under which TTC
shall become the off taker of the production from the Project, under
the terms and conditions set out in the JVA and in the off-take
agreement to be negotiated and executed by the parties. Negotiations
to convert the agreement into contractual volumes will follow the
completion of the FS. TRECan is a well-recognized strategic partner
that has funded $16.0 million to Matamec to complete the FS.  


 
----------------------------------------------------------------------------
ECONOMIC ASSUMPTIONS                                                        
----------------------------------------------------------------------------
                           PEA Market    FS Market                          
                                Price        Price     Quantity             
                             Forecast     Forecast     Sold per         Est.
                           (FOB China    (Ex-Works   year (avg.      Revenue
                          2016 US$/kg    Mine-Site        est.)      LOM(ii)
Rare Earth Oxides                REO)  US$/kg REO)      (t REO)     ('000's)
----------------------------------------------------------------------------
Cerium (Ce2O3)                  $5.00        $5.90      1,018.4      $63,926
----------------------------------------------------------------------------
Lanthanum (La2O3)              $10.00        $5.95        523.2      $33,120
----------------------------------------------------------------------------
Neodymium (Nd2O3)              $75.00       $75.00        469.2     $374,453
----------------------------------------------------------------------------
Praseodymium (Pr6O11)          $75.00       $75.40        127.0     $101,886
----------------------------------------------------------------------------
Samarium (Sm2O3)                $9.00        $6.85        110.5       $8,049
----------------------------------------------------------------------------
Europium (Eu2O3)              $500.00    $1,100.00         14.1     $165,486
----------------------------------------------------------------------------
Gadolinium (Gd2O3)             $30.00       $59.40        111.6      $70,521
----------------------------------------------------------------------------
Terbium (Tb4O7)             $1,500.00    $1,076.00         21.1     $241,636
----------------------------------------------------------------------------
Dysprosium (Dy2O3)            $750.00      $713.00        140.6   $1,066,608
----------------------------------------------------------------------------
Holmium (Ho2O3)                $65.00       $53.60         31.2      $15,246
----------------------------------------------------------------------------
Erbium (Er2O3)                 $40.00       $63.60         70.0      $40,565
----------------------------------------------------------------------------
Thulium (Tm2O3)(i)                  -    $1,200.00          2.1      $22,824
----------------------------------------------------------------------------
Ytterbium (Yb2O3)(i)                -       $56.70         36.5      $18,870
----------------------------------------------------------------------------
Lutetium (Lu2O3)              $320.00    $1,400.00          3.6      $46,496
----------------------------------------------------------------------------
Yttrium (Y2O3)                 $20.00       $29.40        889.6     $278,292
----------------------------------------------------------------------------
Exchange Rate (CAD $/US $)          -    1.0 / 1.0                          
----------------------------------------------------------------------------
Discount Rate (%)                  8%          10%                          
----------------------------------------------------------------------------
(i)At PEA, no value was attributed to Tm and Yb because no prices were      
 available at date of publication.                                          
----------------------------------------------------------------------------
(ii)Est. Revenue LOM is calculated from the (Price After Refining x Quantity
 Sold LOM) - Quantity Sold is rounded to nearest tonne (see table pg. 11).  
----------------------------------------------------------------------------

 
Economic Analysis 
An economic/financial analysis of the project has been carried out
using a cash flow model. The model is constructed using annual cash
flow in constant money terms (second quarter 2013). No provision is
made for the effects of inflation. As required in the financial
assessment of investment projects, the evaluation is carried out on a
so called "100% equity" basis, i.e. the debt and equity sources of
capital funds are ignored. 


 
----------------------------------------------------------------------------
TECHNICAL ASSUMPTIONS                                                       
----------------------------------------------------------------------------
Item                                   Base Case Value                  Unit
----------------------------------------------------------------------------
Total Ore Mined                                  19.77              M tonnes
----------------------------------------------------------------------------
Processing Rate                                  1.332       M tonnes / year
----------------------------------------------------------------------------
Life of Mine                                      15.2                 years
----------------------------------------------------------------------------
Average Combined Process Recovery                   70                     %
----------------------------------------------------------------------------
Average Mining Cost                               7.03     ($ / tonne mined)
----------------------------------------------------------------------------
Average Processing Cost                          36.57    ($ / tonne milled)
----------------------------------------------------------------------------
Average General & Administration Costs            8.71    ($ / tonne milled)
----------------------------------------------------------------------------

 
Financial Model and Results 
A capital cost breakdown by item provides a preliminary capital
spending schedule over a 2-year pre-production period. The total
pre-production capital expenditures are evaluated at $374.4 million,
excluding the working capital. The total sustaining capital
requirement is evaluated at $37.7 million which includes
rehabilitation expenditures. A working capital equivalent of 3 months
of total annual operating costs is maintained throughout the
production period. Apart from the first fills and spare parts
included in the pre-production capital expenditures, an additional
working capital outlay of $11.2 million is required. The total
operating costs are estimated at $1.181 billion for the life of the
mine or an average of $58.9/tonne milled. The financial results
indicate a positive before-tax NPV of $260 million at a discount rate
of 10%, a before-tax IRR of 21.6% and a payback period of 3.88 years. 


 
----------------------------------------------------------------------------
REVENUES AND EXPENDITURES                                                   
----------------------------------------------------------------------------
Item                                              Base Case             Unit
----------------------------------------------------------------------------
Total Mine Revenue                                    2.548   billions $ CAD
----------------------------------------------------------------------------
Pre-production Capital Expenditures                   374.4   millions $ CAD
----------------------------------------------------------------------------
Sustaining Capital Expenditures (Incl. Rehab.)         37.7   millions $ CAD
----------------------------------------------------------------------------
Additional Working Capital Requirement                 11.2   millions $ CAD
----------------------------------------------------------------------------
Mine Rehabilitation Costs                              23.1   millions $ CAD
----------------------------------------------------------------------------
Total Operating Cost                                  1.181   billions $ CAD
----------------------------------------------------------------------------
Total Before-tax Cash Flow                              960   millions $ CAD
----------------------------------------------------------------------------
Before-tax NPV @ 10%                                    260   millions $ CAD
----------------------------------------------------------------------------
Before-tax NPV @ 8%                                     344   millions $ CAD
----------------------------------------------------------------------------
Before-tax NPV @ 6%                                     450   millions $ CAD
----------------------------------------------------------------------------
Before-tax IRR                                         21.6                %
----------------------------------------------------------------------------
Before-tax Payback Period                              3.88            years
----------------------------------------------------------------------------
Total After-tax Cash Flow                               602   millions $ CAD
----------------------------------------------------------------------------
After-tax NPV @ 10%                                     128   millions $ CAD
----------------------------------------------------------------------------
After-tax NPV @ 8%                                      185   millions $ CAD
----------------------------------------------------------------------------
After-tax NPV @ 6%                                      257   millions $ CAD
----------------------------------------------------------------------------
After-tax IRR                                          16.8                %
----------------------------------------------------------------------------
After-tax Payback Period                               4.12            years
----------------------------------------------------------------------------

 
Sensitivity Analysis 
A sensitivity analysis has been carried out on the base case scenario
described above to assess the impact of changes in REE market prices,
total pre-production capital costs and operating costs on the
project's NPV @ 10% and IRR. Each variable was examined
independently. An interval of +/-30% with increments of 10% were used
for all three variables. The project's before-tax viability is not
significantly vulnerable to the under-estimation of capital and
operating costs, taken independently. The net present value is more
sensitive to variations in operating expenses. As expected, the NPV
is most sensitive to variations in REE prices, followed by operating
costs and by capital costs.  
Environment, Permitting and Social Acceptability  
Environment and Permitting  
Matamec has always been proactive and has respected the rules
outlined by the different government authorities.  
After the first drilling campaign outlined a good quality deposit
(2009), Matamec decided to begin a baseline study of the territory
around the deposit. Envireo Conseil, an independent firm from
Rouyn-Noranda, Quebec, was hired to perform the study of water, fish,
aquatic plants and mud samples which were taken from 5 sites, instead
of the 3 recommended by regulation.  
Then in spring 2012, Matamec hired the firm Golder Associates Ltd to
complete the baseline study that was started two years before and
also to perform an Environmental and Social Impact Assessment which
is planned to be completed by Q1 2014.  
A comprehensive program of geochemical characterization has been
conducted during the last year in order to classify all the varying
rock types to be mined, the ore, the overburden and also all the
different waste and residue to be generated by the mine and process
operation. The waste rock, ore, and magsep tailings are classified as
non-acid generating. The hydromet tailings sample analyzed is
classified as acid generating based on its high sulfur content but
all sulphur occurs as sulphate which is already oxidized and
therefore not expected to generate acidity in the future.  
Further radiological analyses of leachates were carried out for
safety purpose and as required under Directive 019 of the MDDEFP to
evaluate the level of risk associated with possible leaching of
radiogenic parameters from mine wastes, magnetic separation rejects
and hydrometallurgical tailings. None of the samples analysed are
classified as high risk waste based on radionuclide analyses in
leachate. Analyses were also done on the solids themselves and so far
the hydrometallurgical tailings are classified as potentially
radiogenic, but manageable. The implementation of proper management
programs in regards to radioactive elements will ensure the safety of
the workers and of the population during operation and after the mine
closure. Furthermore, additional geochemical analysis will be
conducted before detailed engineering in order to determine all the
final classification and design parameters for the infrastructures
related to the tailings management.  
Hydrological and hydrogeological studies were carried out as well.
From the collected information, a water management plan has been put
together and will be optimized at further stages in the project. A
site-wide water quality evaluation study is underway to determine
future water treatment needs at the mine site and hydrometallurgical
waste storage sites.  
From all the information collected during the FS, it was decided to
proceed with dewatered tailings even if it is much more expensive in
operating costs in order to minimize environmental risks related to
the tailings management. It will also allow the operator to consider
progressive site restoration during mine operation.  
The mining lease was filed before the end of March 2012. The project
notice to begin the Federal environmental permitting process was
submitted before the end of Q1 2013. The restoration plan and
environmental impact study commenced at the beginning of May 2012 and
are still ongoing but are well advanced. The official application for
the Certificate of Authorization to the MDDEFP is planned to be
submitted by winter 2014.  
Social Acceptability  
Since 2009, the Matamec Team is making social acceptability a
priority for the Kipawa Project, as well, the Company is committed to
being visible to the people in the region as a socially responsible
neighbour.  
In March 2012, our regional office was opened in downtown
Temiscaming, creating visibility and allowing easy accessibility to
information for people in the region. Regular meetings and
discussions are held with the First Nations Communities, with the
signature of a Memorandum of Agreement with them. Under this
agreement, the First Nations communities completed their own cultural
impact assessment study describing the past and current traditions
and resources used in the project area. They also completed their
socio-economic baseline report for the project. These studies will
contribute to the preparation of the environmental effects assessment
of the Kipawa project. 
There is an open and constant communication between the Matamec team
and the citizens. Public information meetings are held throughout the
region, highlighting our commitment to dialogue and opportunities for
questions about the project.  
We strive to understand all stakeholders concerns and maintain our
strategy of transparency executed through active and consistent
communication.   
NI 43-101 Disclosure  
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements by the following
persons, or under the supervision of, all of whom are independent
Qualified Persons as set out in National Instrument 43-101 Standards
of Disclosure for Mineral Projects ("NI 43-101").  


 
----------------------------------------------------------------------------
Qualified Person                Consulting Firm                 Contribution
----------------------------------------------------------------------------
Guy Saucier, Eng.                    Roche Ltd.           Project Supervisor
----------------------------------------------------------------------------
Yann Camus, Eng.                    SGS Geostat             Mineral Resource
----------------------------------------------------------------------------
Pierre Casgrain, Eng.                Roche Ltd.                       Mining
----------------------------------------------------------------------------
Al Hayden, P. Eng.         EHA Engineering Ltd.                   Metallurgy
----------------------------------------------------------------------------
Eric Poirier, Eng.                 GENIVAR Inc.               Infrastructure
----------------------------------------------------------------------------
Michel Mailloux, Eng.         Golder Associates                  Environment
----------------------------------------------------------------------------
Marc Rougier, Eng.            Golder Associates                 Geotechnical
----------------------------------------------------------------------------
Mayana Kissiova, Eng.         Golder Associates  Tailings & Water Management
----------------------------------------------------------------------------
Valerie Bertrand, P. Geo.     Golder Associates                 Geochemistry
----------------------------------------------------------------------------
Gaston Gagnon, Eng.                 SGS Geostat                    Marketing
----------------------------------------------------------------------------
Michel Bilodeau, Eng.                Roche Ltd.              Financial Model
----------------------------------------------------------------------------

 
The Mineral Resource and Mineral Reserve estimates set out in this
news release were classified according to the CIM Definition
Standards - For Mineral Resources and Mineral Reserves (as adopted by
CIM Council in November 2010).  
Readers are advised that Mineral Resources not included in Mineral
Reserves do not demonstrate economic viability. Mineral Resource
estimates do not account for mineability, selectivity, mining loss
and dilution. These Mineral Resource estimates include Inferred
Mineral Resources that are normally considered too speculative
geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. There is no
certainty that Inferred Mineral Resources will be converted to
Measured and Indicated categories through further drilling, or into
Mineral Reserves, once economic considerations are applied.  
Technical information in this press release was reviewed and adopted
by Bertho Caron, VP Project Development & Construction (Eng.) and
Aline Leclerc, VP Exploration (Geo.), Matamec's Qualified Persons for
this press release.  
The full feasibility study, prepared in accordance to the NI 43-101
compliant technical report, will be filed under Matamec Explorations'
profile on SEDAR at www.sedar.com within 45 days.  
Conference Call  
Matamec will be hosting an analyst conference call on Wednesday,
September 4, 2013 at 10:00 a.m. (Eastern Time). Participants may join
the call by dialing toll free 1-800-381-7839 or 1-416-981-9000. A
live webcast of the call will be available through our website at:
www.matamec.com. A copy of the presentation will be available on our
website one hour prior to the webcast.  
A taped replay of the conference call will be available starting that
same day at 12:00 p.m. ET by dialing 1-800-558-5253 or 416-626-4100
and entering passcode 21667794#, until September 18 at midnight. 
About Matamec 
Matamec Explorations Inc. is a junior mining exploration company
whose main focus is in developing the Kipawa HREE deposit with
TRECan.  
In parallel, the Company is exploring more than 35 km of strike
length in the Kipawa Alkalic Complex for rare
earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus
property. Since 2008, Matamec discovered many potential showings.
Particularly, it drilled the PB-PS Zone in the fall of 2012 and
identified similar Eudialyte-Mosandrite/Yttro-Tantanite/Britholite
associated mineralization founded at the HREE Kipawa Deposit. This
type of mineralization is presently known over 200 metres long and it
opens laterally and at depth. The Company plans to drill these
extensions later this year.  
The Company is also exploring for gold, base metals and platinum
group metals. Its gold portfolio includes the Matheson JV property
located along strike and in close proximity to the Hoyle Pond Mine in
the prolific gold mining camp of Timmins, Ontario. In Quebec, the
Company is exploring for lithium and tantalum on its Tansim property
and for precious and base metals on its Sakami, Valmont and Vulcain
properties.  
Cautionary Statement Concerning Forward-Looking Statements 
This news release contains "forward-looking information" within the
meaning of Canadian Securities legislation. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "scheduled", "anticipates",
"expects" or "does not expect", "is expected", "scheduled",
"targeted", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements contained herein include, without
limitation, statements relating to mineral reserve estimates, mineral
resource estimates, realization of mineral reserve and resource
estimates, capital and operating costs estimates, the timing and
amount of future production, costs of production, success of mining
operations, the ranking of the project in terms of cash cost and
production, permitting, economic return estimates, power and storage
facilities, life of mine, social, community and environmental
impacts, rare metal markets and sales prices, off-take agreements and
purchasers for the Company's products, environmental assessment and
permitting, securing sufficient financing on acceptable terms,
opportunities for short and long term optimization of the Project,
and continued positive discussions and relationships with local
communities and stakeholders. Forward-looking statements are based on
assumptions management believes to be reasonable at the time such
statements are made. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.  
Accordingly, readers should not place undue reliance on
forward-looking statements. Although Matamec has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. Factors that may cause actual results to
differ materially from expected results described in forward-looking
statements include, but are not limited to: Matamec's ability to
secure sufficient financing to advance and complete the Project,
uncertainties associated with Matamec's resource and reserve
estimates, uncertainties regarding global supply and demand for rare
earth materials and market and sales prices, uncertainties associated
with securing off-take agreements and customer contracts,
uncertainties with respect to social, community and environmental
impacts, uncertainties with respect to optimization opportunities for
the Project, as well as those risk factors set out in the Company's
year-end Management Discussion and Analysis dated December 31, 2012
and other disclosure documents available under the Company's profile
at www.sedar.com. Forward-looking statements contained herein are
made as of the date of this news release and Matamec disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise,
except as required by applicable securities laws.  
"Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
Contacts:
Andre Gauthier
President
(514) 844-5252
info@matamec.com 
Edward Miller
Director IR
(514) 844-5252 ext. 205
edward.miller@matamec.com