Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

November 28, 2006 14:32 ET

Phoenix Matachewan Mines Inc.: Agnico-Eagle Completes Option of Swanson Project, Exploration Continues at Bottle Creek, NV Gold Project

OTTAWA, ONTARIO--(CCNMatthews - Nov. 28, 2006) - Phoenix Matachewan Mines Inc. ("Phoenix") (TSX VENTURE:PMM) announces today a formal option agreement has been signed with Agnico Eagle Mines Ltd. ("Agnico") whereby Agnico has the option to purchase the Swanson gold property from Phoenix. Phoenix Management is pleased to have a highly regarded mine operator in Agnico to develop the difficult Swanson project. As the south zone does not come to surface, Agnico's proven skills will optimize the profitability of the ore body.

Phoenix will continue to explore the prolifically mineralised region by retaining its nearby Barville Project, a claim group geologically prospective primarily for zinc and other base metal mineralization that is located immediately on strike from the past-producing Abcourt-Barville zinc-silver mine.

The Swanson Property is located in northwestern Quebec approximately 65 km north of Val d'Or. Phoenix Matachewan obtained the property from McWatters in 2002 and conducted a compilation of historic work, local mapping and sampling and subsequently completed a diamond drilling program on the deposit. It is open to depth.

Under the terms of the option agreement Agnico will pay $125,000 to Phoenix immediately upon signing the now completed option agreement. It also undertakes to conduct a minimum of $400,000 of exploration prior to the first anniversary. Agnico will pay $500,000 to Phoenix should it decide to continue with the project beyond November 2007. Phoenix Matachewan will retain a 11/2% Net Smelter Royalty on production sales at US$600 per ounce of gold or more (1% if the price is less than US$600) and will receive an additional US$25/oz royalty on all gold produced from the project between 25,000 oz and 100,000 oz.

Phoenix Matachewan will immediately invest the proceeds from the Swanson option agreement to advance its Bottle Creek Project. The work will focus principally on an Induced Polarization ("IP") survey to be conducted over the most highly prospective part of the area as determined from Phoenix's previous drilling. These five holes all recovered gold and silver mineralization. (PMM Press Release #06-19) The purpose is to attempt to develop clearer drill targets for a spring drill programme.

This project is located in one of the world's premier gold mining and exploration regions. The core of the Bottle Creek system lies beneath past producing, high-grade mercury mines that are interpreted to be the surface manifestation of a mineralizing system capable of depositing gold and silver.

PMM began an aggressive exploration program in 2005 and has completed numerous, widespread geochemical and biogeochemical surveys, airborne and ground geophysics and an initial diamond drilling program. Results of historical and current work indicate that the region displays widespread anomalous gold, silver, selenium, antimony, arsenic and mercury, in veins in altered rhyolite and basalt indicating that Bottle Creek is part of a class of epithermal gold deposits that includes the Ken Snyder (2.39 M oz gold), Mule Canyon (1.43 M oz gold) and the nearby Sleeper (1.68 M oz gold) mines.

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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