An $828,000 financing is complete

Matamec Exploration Inc. ("Matamec") announces the completion of an $828,000 financing by way of an offering. The proceeds will be allocated to the company's exploration programs for 80%, to its working capital for 10% and for remuneration of the acting agent, that is, Cannacord Capital Corporation, for 10%. Matamec will issue to 50 subscribers a total of 3,312,000 shares at a price of $0.25 per share. Of this total, 2,649,600 shares represent flow-through shares of which the proceeds will be committed as CEE (Canadian Exploration Expense) on or prior to December 31st 2004. The shares are subject to a compulsory 4-month-hold period. To the 50 subscribers, 1,656,000 warrants will be issued at a price of $0.50 per share for a period of 18 months. If the warrants are exercised prior to January 1st 2005, the shares that will be issued to them will be flow-through shares. The additional remuneration of the acting agent will be comprised of non-transferable warrants ("Agent's compensation warrants") entitling the acting agent to purchase 211,200 flow-through shares at a price of $0.25 per share, 52,800 shares at a price of $0.25 per share and 132,000 shares at a price of $0.50 per share (flow-through before January 1st 2005) for a period of 18 months. Again, the shares are subject to a compulsory 4-month-hold period. For the sum total of $662,400 allocated to the exploration programs, Matamec intends to intensively pursue its development and exploration strategy mainly focussed on precious metals. To that end, an amount of approximately $500,000 will be dedicated to the Sakami and Lesperance properties; the remainder will be divided between the five other properties including Vulcain which contains massive sulphides mineralized in nickel-copper. The present financing is subject to regulatory approval. As well, Matamec announces that it has granted its administrators Paul-A. Girard and Dominique Moreau 60,000 stock option shares each, at a price of $0.20 per share for a period of five years.