Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

December 20, 2006 12:31 ET

Phoenix Matachewan Mines Inc.: Diamond Drilling Starts at Steel River Zinc-Copper-Gold Property

OTTAWA, ONTARIO--(CCNMatthews - Dec. 20, 2006) - Phoenix Matachewan Mines Inc. ("PMM")(TSX VENTURE:PMM) announces that a diamond drilling program will commence immediately at its Steel River base metal project, on the north shore of Lake Superior, in Ontario. The drilling will target high priority airborne electromagnetic responses, obtained from an 1100km property wide geophysical survey, that are coincident with prospective zinc-copper-gold geochemistry and geology identified in previous phases of exploration. An initial ten to fifteen hole program is planned; the holes are expected to be 100-150 m each. Additional drilling will follow as access is established. The entire programme is expected to last between three and six months.

The 155 sq km Steel River Project is prospective for zinc-copper-gold where a 34km mineralized trend associated with widespread and locally intense alteration provides an extensive and little explored target near to excellent infrastructure. Drilling will commence on the No.1 Grid in the south-central portion of the property where interpretation of the airborne EM shows high priority anomalies to be closely associated with the mineralized cherty exhalite traced over several hundred metres through trenching, stripping and mapping. This target is clearly anomalous in zinc. Ongoing drilling will target responses along the 34km length of the exhalite trend where abundant, untested, targets occur.

The Steel River Project, in northwestern Ontario midway between Marathon and Terrace Bay, has seen little historic mineral exploration despite being located just 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.

Phoenix Matachewan Mines Inc. is a mineral exploration company with head office in Ottawa, Canada. In addition to the Steel River Project PMM has optioned the Swanson gold project in near Val d'Or, Quebec to Agnico-Eagle Mines Ltd, which is currently drilling the gold ore body as part of Agnico's $400,000 commitment towards bringing the Swanson gold ore body to production. PMM also has a base metal project adjacent to Swanson as well as the very prospective Bottle Creek gold-silver project in Nevada.

Dr. J. M. Franklin, P. Geo, FRSC, is a director of the Company and is a Qualified Person as defined by National Instrument 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.".

www.phoenixmatachewan.com

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