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Matamec Provides Additional Information Regarding Updated Resource Estimate

MONTREAL, QUEBEC--(Marketwire - July 7, 2011) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT - News) would like to take the opportunity to provide additional information regarding its press release of Thursday, June 30, 2011.Infill drilling has upgraded the Kipawa Deposit resource and indicated resources have increased by 67% at a 0.2% TREO cut-off. The table below now provides the TREO cut-off grades for the Kipawa Deposit for November 2010 and June 2011. Depending on the cut-off grade applied, the recently completed definition drill program has increased the indicated resource by between 40% (cut-off of 0.5% TREO) and 67% (cut-off of 0.2% TREO) and the indicated resource now stands at between 72% and 84% of the total resource.If we compare current resource (June 2011) with the resource of November 2010 at an equivalent cut-off:




-- It increases the volume of the REE zones inside the overall mineralized
envelope of the deposit.

-- It increases the RE Oxide content in the REO envelope (at 0.2% TREO).

-- It increases of the size of the indicated mineral resources.

RE Oxide Zones:




-- At a cut-off grade of 0.3% TREO, mineral resources in the Indicated
category show an increase from 8.3 Mt to 12.5 Mt with little change in
grade. This represents an increase of 51% in Rare Earth Oxide content.

-- More than 94% of the mineral resources grade higher than 0.2% TREO in
each category.

Matamec's metallurgical tests suggest that a 0.2% TREO cut-off could be a realistic mining scenario for this deposit. At this cut-off the current resource stands at 17,645,000 tonnes in the indicated category and 6,805,000 tonnes in the inferred category. The resources contain 76,800 tonnes total rare earths and yttrium (TREO) in the indicated category and 25,200 tonnes TREO in the inferred category. The heavy rare earths (HREO+Y) average 36% of the TREO content. The contained dysprosium increases from 1,800 tonnes to 2,800 tonnes in the indicated category.June 2011 Resource Estimate




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Cut-off LREO HREO TREO
Grade Category Tonnes ZrO2% Y2O3% %(i) %(ii) %(iii)
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Mineral
envelope
tonnage Indicated 18,720,000 0.911 0.094 0.269 0.058 0.420
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Inferred 7,175,000 0.862 0.077 0.234 0.049 0.361
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0.2 % TREO
Indicated 17,645,000 0.909 0.097 0.278 0.060 0.435
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Inferred 6,805,000 0.866 0.080 0.241 0.051 0.371
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0.3% TREO
Indicated 12,472,000 0.913 0.114 0.327 0.070 0.512
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Inferred 3,842,000 0.912 0.101 0.299 0.063 0.463
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0.4% TREO
Indicated 8,249,000 0.912 0.134 0.381 0.081 0.596
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Inferred 2,011,000 0.949 0.127 0.367 0.079 0.572
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0.5% TREO
Indicated 4,988,000 0.912 0.155 0.445 0.093 0.693
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Inferred 985,000 0.944 0.158 0.450 0.098 0.706
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(i): LREO sum of all light rare earths oxides (Lanthanum to Samarium).
(ii) : HREO sum of all heavy rare earths oxides (Europium to Lutetium).
(iii) : TREO sum of all rare earths in oxides plus yttrium oxide.
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Effective date 01 June 2011
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November 2010 Resource Estimate




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Cut-off HREO TREO
Grade Category Tonnes ZrO2% Y2O3% LREO %(i) %(ii) %(iii)
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Mineral
envelope
tonnage Indicated 10,960,000 0.898 0.099 0.272 0.047 0.447
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Inferred 9,490,000 0.948 0.107 0.280 0.050 0.468
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0.2 %
TREO Indicated 10,570,000 0.889 0.101 0.292 0.064 0.457
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Inferred 9,390,000 0.949 0.108 0.296 0.067 0.471
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0.3% TREO Indicated 8,250,000 0.874 0.113 0.329 0.071 0.513
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Inferred 7,800,000 0.966 0.118 0.321 0.073 0.513
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0.4% TREO Indicated 5,750,000 0.863 0.129 0.375 0.080 0.584
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Inferred 5,180,000 0.987 0.139 0.370 0.085 0.594
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0.5% TREO Indicated 3,560,000 0.860 0.146 0.432 0.091 0.669
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Inferred 3,040,000 0.972 0.164 0.433 0.100 0.698
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(i): LREO sum of all light rare earths oxides (Lanthanum to Samarium).
(ii) : HREO sum of all heavy rare earths oxides (Europium to Lutetium).
(iii) : TREO sum of all rare earths in oxides plus yttrium oxide.
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Effective date 29 November 2010
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The figures below show the 2011 and the 2010 versions of two block models of the deposit. A large portion of the Eastern and Western portion of the deposit are now classified in the indicated category.http://media3.marketwire.com/docs/Block_Model0707.pdfThe new resource strengthens the foundations of the ongoing preliminary economic assessment (PEA) study and allows Matamec to securely advance to the next step of exploration, namely focusing on finding more tonnage along possible east-west and at depth extensions of the deposit as well as locating similar rare-earth enriched lenses elsewhere on the property. To this end, a ground exploration program is presently underway, to be followed by an extensive diamond drilling campaign.Andre Gauthier, the president of Matamec, states that: "The grade and tonnage at Kipawa are now well-known and predictable. This in turn strengthens the foundations of the ongoing scoping study. Matamec remains confident that the Kipawa deposit will become a world-class producer of heavy rare-earths in a timely manner."NI 43-101 Mineral Resources Update by SGS GeostatThe resource data comes from the new updated NI 43-101 resource estimate of the Kipawa deposit received from the independent firm SGS Canada Inc. - Geological group Geostat ("SGS Geostat"). For reference, the original estimate (as of May 20, 2010) was filed on SEDAR September 17, 2010 and the first update (as of November 29, 2010) was issued January 20, 2011.The mineralization is located within a syenite body in the Kipawa Alkalic Complex. It plunges 20 degrees to the south and its width varies between 40 and 65 meters. Within this unit, there are three layers of enriched TREOs whose thicknesses vary between 2 and 28 meters. The three layers form the "Geological TREO-Enriched Zone". The TREO-enriched resources are detailed in the following tables at different cut-off grades.




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Cut-off (0.2% TREO) (represents 94% of the mineral envelope tonnage)
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Category Indicated Inferred
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Tonnage 17,645,000 6,805,000
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Grade % Tonnes Ox Grade % Tonnes Ox
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Y2O3 0.097 17,100 0.080 5,400
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LREO(i) 0.278 49,100 0.241 16,400
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HREO(i) 0.060 10,600 0.051 3,400
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TREO(i) 0.435 76,800 0.371 25,200
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------------------------------------------------------------------------
La2O3 0.063 11,200 0.055 3,700
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Ce2O3 0.128 22,600 0.111 7,600
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Pr2O3 0.016 2,700 0.014 900
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Nd2O3 0.058 10,300 0.050 3,400
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Sm2O3 0.013 2,300 0.011 800
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Eu2O3 0.0017 300 0.0014 100
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Gd2O3 0.013 2,300 0.011 700
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Tb2O3 0.0024 400 0.0020 100
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Dy2O3 0.016 2,800 0.013 900
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Ho2O3 0.0034 600 0.0029 200
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Er2O3 0.011 1,900 0.009 600
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Tm2O3 0.0017 300 0.0014 100
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Yb2O3 0.010 1,800 0.009 600
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Lu2O3 0.0014 200 0.0012 100
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ZrO2 0.909 160,400 0.866 59,000
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(i)Light rare earths (LREO) = La2O3 to Sm2O3, Heavy rare earths (HREO) =
Eu2O3 to Lu2O3, TREO = LREO + HREO + Y2O3.
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Cut-off (0.3% TREO)
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Category Indicated Inferred
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Tonnage 12,472,000 3,842,000
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Grade % Tonnes Ox Grade % Tonnes Ox
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Y2O3 0.114 14,300 0.101 3,900
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LREO(i) 0.327 40,800 0.299 11,500
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HREO(i) 0.070 8,700 0.063 2,400
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TREO(i) 0.512 63,900 0.463 17,800
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------------------------------------------------------------------------
La2O3 0.074 9,300 0.068 2,600
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Ce2O3 0.151 18,800 0.138 5,300
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Pr2O3 0.018 2,300 0.017 600
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Nd2O3 0.068 8,500 0.063 2,400
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Sm2O3 0.015 1,900 0.014 500
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Eu2O3 0.0020 200 0.0018 100
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Gd2O3 0.015 1,900 0.014 500
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Tb2O3 0.0028 400 0.0026 100
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Dy2O3 0.018 2,300 0.017 600
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Ho2O3 0.0041 500 0.0037 100
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Er2O3 0.013 1,600 0.011 400
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Tm2O3 0.0019 200 0.0017 100
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Yb2O3 0.012 1,400 0.011 400
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Lu2O3 0.0015 200 0.0014 100
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ZrO2 0.913 113,800 0.912 35,000
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(i) Light rare earths (LREO) = La2O3 to Sm2O3, Heavy rare earths (HREO)
= Eu2O3 to Lu2O3, TREO = LREO + HREO + Y2O3.
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Technical details of the NI 43-101 mineral resources estimation by SGS GeostatSGS Geostat included data from up to April 2011 to calculate the mineral resource update. It includes Unocal Canada's historic drill holes (30 drilled in 1988-1990), Matamec's drill holes from 2009 to 2011 totalling 10,278 meters drilled, as well as 631 meters of channel samples (Unocal Canada). A total of 6,733 mineralized intervals were analyzed for 16 elements and are part of the update.The estimate was made with a block model (10m x 10m x 5m) using the inverse distance squared for the grade interpolation levels. The blocks are classified according to their distance to drill holes. Blocks located in an area drilled at 50m x 50m or less are classified as indicated, while those drilled on larger spacing are classified as inferred. The estimate parameters are similar to those used for the mineral resource update issued in January 2011.Yann Camus (Eng.) engineer for the independent firm SGS Canada Inc. - geological group Geostat ("SGS Geostat ") is the qualified person under NI 43-101 standards, which supervised the preparation of the resource estimate.Robert Crepeau (Eng.) and Aline Leclerc (Geo.), Vice-President Exploration of Matamec, qualified person under NI 43-101 standards for the project Zeus, oversaw the preparation of the scientific and technical information. Together, they have verified the information in this press release.Rare metals pricingGlobal prices of TREOs have jumped since Jan. 2011, particularly the five critical elements identified by the US DOE (see table (i)). Heavy REE shortages are projected as China cuts back on its exports. The Kipawa Deposit is enriched in HREEs.




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Individual REO Average Jan 1
Average Average Average Average 2008- 2011- June 30
2008 2009 2010 2010 2011
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La2O3 8.00 6.00 20.00 11.33 45.00
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Ce2O3 5.00 5.00 22.00 10.67 43.00
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Pr2O3 28.00 15.00 43.00 28.67 142.00
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(i)Nd2O3 28.00 16.00 46.00 30.00 571.00
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Sm2O3 5.00 5.00 15.00 8.33 211.00
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(i)Eu2O3 463.00 455.00 549.00 489.00 2,445.00
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Gd2O3 10.00 7.00 21.00 12.67 292.00
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(i)Tb2O3 682.00 357.00 526.00 521.67 2,651.00
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(i)Dy2O3 118.00 108.00 223.00 149.67 1,744.00
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Ho2O3 - - - 34.73 381.00
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Er2O3 - - - 40.08 492.00
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Tm2O3 - - - 96.93 3,182.00
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Yb2O3 - - - 26.93 126.00
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Lu2O3 - - - 405.75 1,151.00
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(i)Y2O3 16.00 13.00 27.00 32.75 209.00
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All prices are in USD/kg. Source: Asian-Metals and Metal-Pages.
(i)5 most critical elements as identified by the US DOE.
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Matamec has 117.3 million shares presently outstanding.About MatamecMatamec Explorations Inc is a junior mining exploration company whose main focus is in developing the Kipawa deposit and exploring more than 35km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property.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 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. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.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.