Matamec Signs Two Letters of Intent to Acquire 50% Interest in 77 Claims in Porcupine Gold Camp

Subject to certain conditions, Matamec Explorations Inc. ("Matamec") announces that the Board of Directors of the Company has agreed to the terms of the letters of intent signed on July 17, 2006, by which Matamec can acquire a 50% interest in the Matheson and Matheson-Anglo Properties, a total of 77 claims (1,232 hectares) of land in the Porcupine mining camp. This ground lies in Matheson Township along strike from the Bell Creek, Owl Creek and Hoyle Pond mines in Hoyle Township that together have produced to-date a total of more than 1.5 million ounces of gold. The Matheson Property The Matheson Property which consists of 75 claims (1,200 hectares) and can be acquired from Explorers Alliance Corp. (Explorers), cheap diet pills online lies in the western half and south eastern portion of Matheson Township. Those claims are underlain in part by the same metavolcanic rocks that host the Bell Creek, Owl Creek and Hoyle Pond mines. Kinross reported five assay results greater than 1.0 g/t Au for their 1997 drilling program, including the highest gold value of 3.39 g/t Au over 1.0 metre and the widest intercept of 2.03 g/t Au over 1.5 metres. These gold values were encountered in grey zones, like those associated with gold mineralization in the Hoyle Pond and Owl Creek mines, that extend for a distance of 2 kilometres along strike in the north claim block and 1.2 kilometres in the south claim block. The Matheson-Anglo Property The Matheson-Anglo Property which consists of 2 claims (32 hectares) and can be acquired from Colbert Drilling and Exploration Co. (Colbert), is also underlain by the metavolcanic rocks that host the Bell Creek, Owl Creek and Hoyle Pond mines. This parcel of land was formerly held by Anglo Canadian Mining Corporation and lies immediately east  of the Kidd Creek smelter. The highest gold values reported by Anglo Canadian from their 1990 drilling program was 52.8 g/t Au over 0.30 metre and the widest intercept was 4.87 g/t Au over 8.5 metres. These values are associated with quartz veining present in the drill core. Terms of the Letters of Intent Matheson-Anglo Property According to the terms of the first letter of intent, Matamec can acquire a 100% interest in the Matheson-Anglo Property by paying $675,000 to Colbert. Also, Colbert has agreed to pay to Matamec $675,000 in consideration of the issuance of 2,250,000 flow-through common shares of Matamec at $0,30 per share with 2,250,000 warrants entitling Colbert to purchase the same number of flow-through shares at $0,45 per share for an eighteen (18) month period within ninety (90) days after approval of the regulatory authorities. The Property is subject to an NSR royalty of 1.5%, of which 0.75% can be repurchased for $1,500,000. Matheson Property According to the terms of the second letter of intent, Matamec can acquire a 50% interest in the Matheson Property by issuing to Explorers, 2,166,667 common shares of Matamec valued at $0.30 per share and 2,166,667 flow-through warrants exercisable at $0.45 per share for an eighteen month (18) period beginning ninety (90) days after regulatory approval; at Explorers’ discretion, these shares and warrants may be issued by instalments from time to time. Furthermore, Matamec transfers to Explorers a 50% interest in the Matheson-Anglo property and has to spend $1,500,000 in exploration work over three (3) years. NSR royalties of 1.5% to 3% are applicable on certain claims of the Property of which 0.75% can be repurchased for $1,500,000. Matamec will be the operator as long as its interest is at least 50%. Others Terms Besides the approval of regulatory authorities, the letters of intent are subject to a 90-day due diligence period during which time Matamec will proceed to verify the geological data and the legal aspects of the transaction. A seat on the Board of Directors of Matamec will also be filled by a new director after agreement with the Board of Directors. Financing Coincidently with the due diligence process, Matamec will begin negotiations for a private financing that will be used to purchase the Matheson-Anglo Property, for exploration work on the properties and for working capital purposes. Intention to Pay with Common Shares the Accrued Interest on a Convertible Debenture Matamec also announces that it intends to issue 64,757 common shares at a price of $0.138 per share, subject to regulatory approval, for the payment of accrued interest in the amount of $8,926,03 on a convertible debenture of $150,000 issued January 15, 2004. These securities will be subject to a four-month hold period from their date of issue. Ed van Hees, P.Geo, is the Qualified Person responsible for the technical contents of this press release.