Matamec Reports 2012 Year End Financial Results

MONTREAL, QUEBEC--(Marketwired - May 2, 2013) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) today reported its financial results for the fourth quarter and year ended December 31, 2012. All numbers are reported in Canadian dollars unless otherwise stated.

"2012 was an important year in Matamec's history with the signing of the joint venture agreement with Toyotsu for the Kipawa deposit," said Andre Gauthier, President and CEO of Matamec Explorations. "With 80% of the Kipawa feasibility study now completed and the continued financial support demonstrated by Toyotsu, the Company is well positioned financially to achieve its goal of becoming the next global heavy rare earth producer."

Financial Highlights

• Net loss of $122,638 or ($0.001 per share) in 2012 compared to net loss of $900,019 or ($0.008 per share) in 2011
  
  
• Working capital of $4.3 million including cash and cash equivalents of $1.59 million (working capital includes $3.64 million in tax credits receivable on December 31, 2012)
  
  
• Current assets totalled $5.99 million in 2012 compared to $4.93 million in 2011
  
  
• Received as of April 23, 2013 from Toyotsu, $5.84 million of the $7.5 million or $14.3 million of the maximum $16.0 million for the completion of a definitive feasibility study on the Kipawa deposit
  
  
• Matamec to receive reimbursed tax credits for qualifying exploration expenses associated with the JV agreement with Toyotsu for the Kipawa deposit in the amount of $3.2 million approximately (2013: $2.0 million and 2014: $1.2 million)
  
  

Kipawa Operational Highlights

• 80% completion of the feasibility study by independent engineering firms Roche and Genivar - results expected at the end of the second quarter
  
  
• Feasibility study activities last quarter focussed on laboratory test works to optimize the ore process flow diagrams and the process equipment sizing. The engineering firms worked on OPEX and CAPEX in order to pursue the feasibility study
  
  
• Completion of the first mineral processing and hydrometallurgical first pilot plants in the summer of 2012 at SGS Minerals Service in Lakefield, Ontario
  
  
• Development of the final purification process to produce a high purity rare earth product acceptable by end-users
  
  
• An MOU signed on July 6, 2012, with the Algonquin communities of Eagle Village First Nation and Wolf Lake First Nation concerning the Zeus property, including the Kipawa deposit, and a Consultation and Exploration Protocol is currently being discussed
  
  
• An Environmental and Social Impact Assessment initiated in May 2012 by the firm Golder Associates. Last summer was mainly dedicated to data collection in the field to consolidate the baseline study and to confirm infrastructure locations for a potential mining operation
  
  

SELECTED ANNUAL INFORMATION

The following table includes selected consolidated financial data, prepared in accordance with International Financial Reporting Standards ("IFRS"), for the years 2012 and 2011.

	Fourth Quarter				Years end
	Results as of December 31, 2012		Results as of December 31, 2011		Results as of December 31, 2012		Results as of December 31, 2011		Results as of December 31, 2010
	$		$		$		$		$
Others income
Interest income	11,219		17,357		41,097		59,531		2,997
Gain (loss) on disposal of property	(345,916	)	-		3,982,372		-		-
Expenses
Administrative expenses	(1,054,973	)	(477,225	)	(2,446,625	)	(1,640,115	)	(1,787,545	)
Stock-based compensation	(141,300	)	(38,723	)	(588,927	)	(426,343	)	(305,786	)
Income tax expenses (recovery)	(603,827	)	(812,875	)	1,106,173		(1,108,166	)	(344,317	)
Net loss	(929,478	)	(417,495	)	(122,638	)	(900,019	)	(1,824,593	)
Basic and diluted net loss per share	(0.007	)	(0.003	)	(0.001	)	(0.008	)	(0.020	)

Statements of Financial Position	December 31, 2012	December 31, 2011	December 31, 2010
	$	$	$
Total assets	20,445,042	16,187,317	16,674,351
Cash and cash equivalents	1,592,282	3,104,058	5,900,138
Equity	15,910,692	15,448,303	14,936,829

Annual Filings Available

The Company's December 31, 2012 audited consolidated financial statements and Management's Discussion and Analysis including further discussion and analysis of fourth quarter events or items that affected results of operations, financial position and cash flows, will be available in the Investor Relations section of the Company's website - www.matamec.com - or on the Canadian Securities Administrators' website at www.sedar.com.

About Matamec

Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with TRECan. Following the positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring of a VP Project development and Construction, Matamec and TRECan decided to move directly to the feasibility study. The March 2012 press release highlighted that the project has robust economics such as: $606 million before-tax value (NPV8%), a 36.9% before-tax IRR, $2.8 billion revenue, $1.67 billion EBITDA, a before-tax payback period of 2.4 years, etc. (see press release dated January 30, 2012).

In parallel, the Company is 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 Wachigabau property.