Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

August 14, 2006 09:27 ET

Phoenix Matachewan Optimistic about Results of Exploration at 90 sq km Nevada Gold-Silver Project

OTTAWA, ONTARIO--(CCNMatthews - Aug. 14, 2006) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM) announces that it has received the results of an initial diamond drilling program at its Bottle Creek epithermal gold-silver project. PMM recently completed 2161m of diamond drilling on 5 widely spaced holes within a six km(2) area. All five holes intersected anomalous gold and silver, with four of them containing multiple intersections of greater than 0.3 g/t Au. In summary, these holes have outlined the cap to a major gold-bearing hydrothermal system, which will be explored further in 2006 with additional geophysical surveys and drilling.

The property is located at the NE corner of the Jackson Mountains, in the Bottle Creek mercury district of northwestern Nevada, approximately 250km northeast of Reno. Gold and silver exploration dates from 1982 when the area was explored for Carlin-type gold mineralization. PMM is exploring at Bottle Creek because the high-grade, past-producing mercury mines are interpreted to be the surface manifestation of an epithermal mineralizing system capable of depositing gold and silver.



The 2006 drilling follows an aggressive exploration program in 2005.
In all PMM has spent approximately C$2.3 in the region, with $1.8m
spent on the core area. In addition to the drilling, PMM has
completed:

- Doubling its land position to over 90 sq km.
- A major regional aeromagnetic survey covering 696 km(2).
- An extensive reconnaissance and detailed gravity surveys covering
110 km(2)
- Major regional hyperspectral survey covering 1115 km(2)
- Reconnaissance IP and NSAMT surveys (16.6 line km of IP and 14.9
line km of NSAMT)
- Geological mapping on both district and regional scales.
- Large reconnaissance Hg vapour survey (667 samples)
- Large reconnaissance sage biogeochemical survey (-1900 samples)


The airborne magnetic survey conducted by PMM identified a rift which localized bimodal volcanic activity and is parallel to the prolifically gold mineralized northern Nevada rift. The setting is very similar to that of other major gold deposits in western Nevada, including Mule Canyon (1.43M oz gold).

The results of this preliminary and widely-spaced assessment of the potential for epithermal gold mineralization indicate that we have reached the top of a gold-bearing system. Several of the holes in the core area contained zones with greater than 0.3 g/t Au, with key indications of deeper mineralized zones. The PMM team is very excited by the strong positive results obtained in this initial assessment of the area, and will pursue these deeper targets in our next phase of exploration, which will commence immediately.

The drilling focussed on three target areas designated South Halburg, Canyon Dome and Bluebird. Each of these contains distinct targets defined by rock, soil and sage geochemical anomalies. These are comprised of high contents of mercury, antimony, arsenic, tungsten and gold. All of these elements are pathfinders commonly associated with epithermal gold-silver mineralization. The initial drill program examined five geochemically anomalous areas, each coincident with large scale structural features that potentially controlled gold deposition. Five holes (one for each target) totalling 2161m were completed within a six square kilometre area. These vary in length from 370m to 515m and are between 900m and 2.7km apart. This initial program was intended to provide information on the prospectivity and key characteristics of these widely separated surface-defined anomalies.

All five drill holes contained well-defined zones of anomalous gold and silver, with associated highly anomalous, arsenic, antimony and mercury. In addition zones of locally anomalous zinc, selenium, thallium, tungsten and molybdenum were identified - possibly indicative of more than one mineralization style in the area. Gold values OBTAINED OVER THE FIVE HOLES RANGED up to 1.0g/t over 1.5m (range 0 - 1.0g/t Au) and anomalous silver up to 140g/t over 3m (range 0.4 - 140g/t Ag). Alteration and vein mineral assemblages indicate that drill holes have tested the top of a major hydrothermal centre - indicated by the development with depth of iron-dolomite, iron-chlorite, high temperature illite and secondary potassium feldspar.

All analyses were conducted by ALS-Chemex in Vancouver, B.C. through their Winnemucca, Nevada preparation facility. The analytical data and maps are available on the PMM website at www.phoenixmatachewan.com.

The results of PMM's preliminary drill program provide excellent guides for the next exploration phase. All gold zones are associated with anomalous sulfide contents, which will provide excellent targets for new geophysical surveys. The aforementioned mineral and geochemical anomalies, together with high gold contents in all holes indicate that we have intersected the top of a major hydrothermal thermal system, and that the gold mineralization occurs at slightly greater depth. The next phase of our program will involve new geophysical surveys (gravity and electromagnetic) which should establish better defined targets for the next phase of drilling. We anticipate completing these surveys over the next few weeks, with drilling to resume in the fourth quarter of 2006.

The Bottle Creek property is under option from Golden Gryphon Explorations Inc. (GGE, a private company incorporated in British Columbia) whereby the Company has the option to earn 60% of the Bottle Creek property in Humboldt County, Nevada.

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."

www.phoenixmatachewan.com

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