Inferred Nickel-Copper resources on Vulcain

Matamec Explorations Inc. («Matamec») would like to bring precisions about the inferred resource estimate presented for the Vulcain property in the November 8th press release. In accordance with National Instrument 43-101, the Systems Geostat International Inc. report is available under the project number SEDAR 00706017. The Vulcain property contains the Renzy nickel-copper (Ni-Cu) deposit mined by open pit between 1969 and 1972. Approximately 716,000 short tons were extracted of the 1,012,000 short tons of diluted reserves, indicated by drilling at grades of 0.72% Cu and 0.70% Ni. Therefore, there should remain approximately 300,000 short tons of ore in continuity of the old workings to be extracted on the site. Additional reserves of the possible category were also estimated at 980,600 short tons in equivalent grade for Ni-Cu. These reserves were calculated by Black and Riddell (Metals, Petroleum & Hydraulic Resources Consulting Ltd of Toronto) for Renzy Mines Ltd in 1968, based on recommendations from the Association of Professional Engineers of Ontario. It should be mentioned that the mine closed not because of a lack of ore or because of low metal prices but because of the cessation of the purchase contract for concentrates by Falconbridge. The latter had a surplus of metals in 1973. In 2002, Geostat Systems International Inc. was appointed to carry out the resource calculations of the remaining ore. They obtained 259,400 metric tonnes at 0.87% Ni and 0.94% Cu with a cutoff grade of 0.5% Ni equivalent. The Ni equivalent was calculated according to the following: Ni eq. = Ni + 0.26 Cu. The 0.26 coefficient was calculated from the metal prices. For the moment, all of the resources are inferred due to a lack of confidence in both the interpretation and the exact location of the drill holes. This lack of confidence stems from several factors: the topography, the depth of the open pit, the elevation of the drill hole collars, but mostly the lack of geological information. The only available information is a section plan of the open pit (1151N) with geological interpretation and a level plan of 910 feet (277.4 m) done by Johnson in August 1971, shortly before the mine closure. As well, the level plan cannot be adequately located since the drill hole intersections and their coordinates are not indicated. We believe that level 910 feet was the last level mined by Renzy Mines. The modeling procedure and calculations utilized by Geostat in 2002 is the following:

• Computerization of drill hole data
• Creation of a surface topography map of the lake bottom from profile antibiotics and the topography of the dewatered lake (contour maps of the MNRWP)
• Interpretation of the sections of the mineralized zones
• Interpretation of the levels based on the interpretation in section
• Generation of composites inside the mineralized envelop
• 5 m composite from drill hole assays
• Creation of the bloc model, the parameters are:
  • size of blocks: 5 mE x 5 mN at 3.05mZ/li>
  • average ore density: 3.2 tonnes/m3/li>
  • elevation of remaining ore: between the floor 840 feet (256 m) and the floor 910 feet (277.35 m)/li>
  • Estimate with a spherical search ellipsoid of 20 m/li>
  • Tabulate the resources at grades greater than 0.5% Ni equivalent.

The site of the past-producing Renzy mine was cleaned and secured by the Quebec Ministry of Natural Resources, Wildlife and Parks (MNRWP) in the fall of 1995 after the cessation of the lease by Renzy Mines Ltd. Matamec has been released by the MNRWP of all responsibility for site restoration. In the event of future mining of the deposit, the environmental responsibility of the site will be the responsibility of the producer. We are currently unaware of the environmental impacts related to future mining. All necessary work needed for future open pit mining such as dewatering of the pit, hoisting ore, establishing the mine’s infrastructure, etc., are governed by standards and directives issued by the Ministry of the Environment that must be respected by the producer and in which the Canadian mining industry has the know how. All of the mining claims for the property are 100% wholly owned by Matamec and are duly registered with MNRWP. The majority of the mining claims, including the pastproducer Renzy mine, are subject to a 2% net smelter royalty (NSR), redeemable for 1 million dollars. Among other economic considerations, during the 1968 feasibility study, the average price for nickel and copper were respectively US$0.94/lb and US$0.42/lb. During mining, these prices increased on average to US$1.10/lb and US$0.52/lb. Presently, the prices for nickel and copper are respectively US$6.48/lb and US$1.41/lb. The facts reported in this press release were done under the supervision of Aline Leclerc, geologist, Vice-president Exploration and qualified person for Matamec, in accordance with National Instrument 43-101.