Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

May 25, 2006 09:48 ET

Phoenix Matachewan Mines Inc.: Airborne Geophysical Survey Completed, More Ground Acquired at Steel River Property

OTTAWA, ONTARIO--(CCNMatthews - May 25, 2006) - Phoenix Matachewan Mines Inc. ("Phoenix")(TSX VENTURE:PMM) announces that an 1100km airborne geophysical survey is now complete and results are expected shortly. The survey covered a large portion of the 155km(2) Steel River base metal project, northwestern Ontario. Strongly anomalous results obtained by PMM from diamond drilling, prospecting, mapping and ground geophysics reinforce those from historic work and define a large domain highly prospective for zinc-copper-gold mineralization. Interpretation of results from the survey will be used to aid in selection of targets for more detailed exploration and anticipated diamond drilling this summer.

In the Steel River area, subject to TSX-Venture Exchange approval, Phoenix has also acquired 37 claims, nominally 592ha, in Walsh Twp. as part the ongoing exploration program. The claims cover a portion of the extensive cherty, exhalite, horizon that has zinc, copper and gold enrichment. The option to purchase the claims requires PMM to make a cash payment of $15,000 and 250,000 Phoenix shares upon signing the agreement followed by payments of $10,000 and 100,000 shares through the fourth anniversary. At the fifth anniversary a payment of $100,000 and 400,000 is required to exercise the option. In addition the claims are subject to a 3% NSR of which 2% can be purchased for $2 million. A $50,000 per annum work commitment is also required.

The Steel River Project, in northwestern Ontario midway between Marathon and Terrace Bay, has seen little historic mineral exploration despite being located just five kilometres north of the Trans-Canada Highway. Past-producing volcanogenic massive sulphide (VMS) districts occur at Manitouwadge, (65Mt; ave. 1.2%Cu, 0.12%Pb, 3.7%Zn, 40g/t Ag), 75 km ENE and Winston Lake, (7Mt; ave. 1.0 %Cu, 16.8% Zn, 33g/t Ag), 45 km W. Paul Jones, P.Geo, President, is the Qualified Person for this work.

Phoenix is a mineral exploration company with its head office in Ottawa, Canada. In addition to the Steel River Project, Phoenix has a Letter of Intent with Agnico-Eagle Mines Ltd. to bulk sample its Swanson gold deposit, in northwestern Quebec, prior to a production decision. PMM is currently in the midst of a 2,500metre, 5 hole diamond drill programme on the very prospective Bottle Creek gold-silver project in Nevada.

"The statements in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

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