Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

March 01, 2007 16:30 ET

Phoenix Matachewan Mines: $1.2 Million Private Placement

OTTAWA, ONTARIO--(CCNMatthews - March 1, 2007) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM) ("Phoenix") announced today that, subject to the approval of the TSX-V, Phoenix plans to issue 8,000,000 flow through common shares ("FT Shares"), priced at $0.15 per FT Share, for proceeds of $1,200,000. There are only two institutional placees. No commission has been paid.

The funds are to be used for two new drilling programmes, one for zinc in Val d'Or, QC, near the Abcourt Barvue Mine, and the other a gold prospect in Matachewan, ON, near Lakeshore Mine's new Matachewan Consolidated-Young Davidson Mine gold discovery.

In addition, Agnico-Eagle Mines Ltd. ("Agnico") recently doubled its diamond drilling programme to 1850m from the original 925m (See PR #06-22, 6/12/06). This $230,000 programme is part of the $400,000 work commitment by Agnico to assess the production potential of the Swanson gold ore body. Results from the drilling are expected in March.

The drilling campaign on the Swanson deposit should determine if the known gold mineralisation is continuous within a precise corridor. Agnico's model for this main gold zone is that the zone is estimated to be around 40 meters wide and could extend to 150 meters long, dipping towards the NE at -70 degrees.

Dr. J.M. Franklin P. Geo is the qualified person under National Policy 43-101.

"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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