Matamec Outlines a Simple Metallurgical Process for the Kipawa Deposit

MONTREAL, QUEBEC--(Marketwire - Aug. 4, 2011) - Matamec Explorations Inc. ("Matamec" or the "Company")(TSX VENTURE:MAT) is pleased to announce additional results concerning its simple and low-cost proprietary leaching method for the lixiviation of the unique coarse grained Kipawa eudialyte ore. This straightforward process dramatically reduces the amount of heat, acid, water and time required in solubilising the rare earths, while achieving an excellent overall REE leach extraction of 88%, and a HREE+Y leach extraction of 89%. The figure (available at the following address: http://media3.marketwire.com/docs/kipawa.pdf) outlines the full optimised metallurgical process to date. Precipitation tests are ongoing.

As previously announced, Matamec is able to eliminate 65% of the ore by a magnetic separation process (press release July 21, 2011). The pre-concentrate then undergoes a direct leaching method. Lixiviation is carried out at room temperature, at 20% solids in solution with 150 kg of acid per tonne of concentrate, for a 2 hour duration. One of the significant benefits of this technique is in eliminating the 200ºC, energy intensive, acid "cracking" step typical of many rare earth circuits. It not only results in a much simpler process, but also leads to significant savings in heating costs. The lowering of the acid dosage from 600 kg/t to 150 kg/t also greatly cuts back on the operating cost and results in the reduction of both the acid and neutralizing reagent consumption. Furthermore, by leaching at 20% solids and shortening the leach time to 2 hours, the amount of water required and the size of the leaching circuit can be reduced in size, which directly benefits the project's capital cost.

"Energy and reagents are two major operating costs when extracting rare earth elements from the ore," said André Gauthier, president of Matamec. "The success of our leaching process, in combination with our pre-concentration technique (which allows us to lixiviate only 35 % of the original ore mass), marks a significant breakthrough for Matamec by defining a low-cost metallurgical process for the Kipawa deposit. The excellent metallurgical achievements to date demonstrate our commitment to developing the high value Kipawa project in a timely and inexpensive fashion."

The metallurgical test work is continuing at SGS Minerals Service in Lakefield, Ontario. Aline Leclerc, V-P Exploration (Geo.) and Eliza Ngai (P.Eng) are Matamec's Qualified Persons for this press release.

About Matamec

Matamec 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 surrounding 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. It is also exploring for gold in conjunction with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.