Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

June 12, 2006 09:30 ET

Phoenix Matachewan Mines Inc.: More Ground Acquired at Bottle Creek, Nevada Property

OTTAWA, ONTARIO--(CCNMatthews - June 9, 2006) - Phoenix Matachewan Mines Inc. ("Phoenix") (TSX VENTURE:PMM) announces that it has increased its land holdings in the highly prospective Bottle Creek, Nevada property by 37%. PMM has optioned the Bottle Creek Property from Golden Gryphon Exploration Inc. ("GGE") a private, British Columbia registered, company which is the operator of the project. The property is located in the Bottle Creek mercury district of north-western Nevada, approximately 250km northeast of Reno, and displays many features in common with past and present producing low-sulphidation, epithermal gold deposits.

The added claim blocks, comprising 25.4km(2) (for a total land package now of 94.9 km(2)) were staked following preliminary stream and soil geochemical surveys, as well as rock geochemistry in areas to the north of the main Bottle Creek claim group. In addition, some of these adjoin the main claim block, and consolidate the company's position along the highly prospective fault structures that appear to control gold mineralization. PMM is currently in the midst of a 2,500 metre, 5 hole diamond drill programme on the very prospective Bottle Creek gold-silver project in Nevada. The results of this program are expected in about three weeks, and will be announced at that time.

Gold and silver exploration at Bottle Creek dates from 1982 when the area was explored for shallow epithermal precious metal mineralization. Results of historical and current work indicate that the region displays widespread anomalous gold, silver, selenium, antimony, arsenic and mercury and low molybdenum, copper lead and zinc content - all hosted in strongly altered rhyolite and basalt. This suggests that Bottle Creek fits into a distinct class of epithermal gold mineralization that includes the Ken Snyder (2.39 M oz gold), Mule Canyon (1.43 M oz gold) and nearby Sleeper (1.68 M oz gold) deposits.

Phoenix also recently announced that 1100km airborne geophysical survey at its Steel river property in northwestern Ontario is now complete and the results are expected within two weeks. On the basis of historic work completed on the property prior to Phoenix' acquisition, Phoenix' 2005 drilling discovered up to 16.5% zinc over 5m at shallow depths.

In addition to the Bottle Creek and Steel River projects, Phoenix has a Letter of Intent with Agnico-Eagle Mines Ltd. to bulk sample its Swanson gold deposit, in northwestern Quebec, prior to a production decision.

Phoenix is a mineral exploration company with its head office in Ottawa, Canada. Paul Jones, P. Geo. is the qualified person for Phoenix.

"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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