Matamec Closes A $1,535,000 Private Placement

Matamec Explorations Inc. (The “Company" or “Matamec") announces that it has closed a non-brokered private placement for gross proceeds of $1,535,000 (the “Offering”). Among the list of subscribers to the Offering figure private investors, members of the Pro Group and institutional investors such as Sodemex II, Limited Partnership. The proceeds from the Offering will be used by the Company for general working capital and to start an extensive exploration program at the end of October on the Heavy Rare Earth’s Kipawa deposit located on the Zeus property and described below. The private placement consists of 8,527,555 units at a purchase price of $0.18 per unit for gross proceeds of $1,534,968. Each unit is comprised of one (1) common share and a half (1/2) warrant, each whole warrant entitling the holder to purchase one (1) common share at a price of $0.25 per share of the Company for a period of twelve (12) months following the closing date and thereafter at a price of $0.35 per share for an additional twelve (12) month period. The securities sold under the Offering have been issued pursuant to exemptions from the prospectus and registration requirements of applicable securities laws and are subject to a four month hold period from the closing date. Zeus Property and Heavy Rare Earth’s Kipawa Deposit Exploration Program Beginning Fall 2009 The 100% owned Zeus property is situated 160 km south-east of Rouyn-Noranda and 65 km east of Temiscaming (see figure 1). Between 1985 and 1991, Unocal Canada Ltd. with its subsidiary Molycorp, Inc. explored the property and identified three (3) zones of the rare earth elements (“REE”), yttrium and zirconium (see figure 2), known as the PBPS Zones and the Kipawa Deposit (historical resources of 2.27 Mt @ 0.14% Y2O3 and 1.05% ZrO2). Please note that since the qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The most economically significant areas, where potentially ore grade values are widespread and concentrated, are the Heavy Rare Earth’s Kipawa Deposit, presently considered open both laterally and at depth, and the PB-PS Zones that have been partially drilled. Figure 3 shows a schematic vertical longitudinal section of the Kipawa Deposit that clearly demonstrates that only 2 areas were sufficiently drilled to do this historical resource calculation and the known depth of the deposit as outlined by the drilling varies between 20 and 35 metres. Furthermore, it should be noted at that time, that REE content was not systematically analyzed in drill holes since the main element considered was yttrium. Rare Earth mineralization is therefore known through the analyses of bulk samples. After discovering four (4) REE, yttrium and zirconium showings in 2008, Matamec recently re-sampled 4 historical trenches for the full suite of rare earth elements and published an NI 43-101 report available on Sedar July 20th, 2009 (see June 30th and July 16th press releases). By completing this new financing, Matamec begins the next step towards the planned NI 43-101 compliant resource report on the Heavy Rare Earth’s Kipawa Deposit. This next step will consist of a 2,000 metre NQ drilling program beginning this fall (see Figure 4) which will establish new REE, Yttrium and Zirconium resources planned for March-April 2010 -- drilling results will of course be announced as they are known. Following this program, and the continuation of previous metallurgical studies on the newly acquired samples, Matamec will then be able to begin a scoping study in the latter part of 2010. The two phase exploration program has a total budget of $1.35M and will target REE-YZr mineralization in the Kipawa Alkaline Complex. Phase I (for a total of $975,000) will consist of a systematic re-evaluation and resource consolidation on the Heavy Rare Earth’s Kipawa Deposit, including data-compilation, trenching, channel sampling, definition drilling, assaying, and extractability study.Although the entire Zone will be covered, emphasis is to be directed on the following known targets:

• the Central Zone of the deposit, 620 metres long, has no established resources; however, 3 trenches and 3 drill holes have been done at very wide spacing and every trench and drill hole in this part contains mineralization;
• the lower part of the syenite unit, under-explored by Unocal Canada Ltd. during their 1988 and 1990 drilling campaigns;
• additional drilling (“twinning” of existing holes) in the western zone to confirm previous results and extend assays to the entire suite of REE;
  • excavating, mapping and channel sampling old and new trenches;
  • continuation of mineralogical and metallurgical testing done by Unocal Canada Ltd.-Molycorp, Inc.-Mountain States R&D; International, Inc. from 1988-1991, with a consideration of metal extractability.

Phase II (for a total of $375,000) should follow Phase I and cover the entire property. It will include radiometric, lithological, till and radon surveys. Emphasis is to be directed on known targets. Shortage on the world supply of Heavy Rare Earths Considering:

1. the possible shortage on the world supply of Heavy Rare Earths such as Terbium, Dysprosium and associated Yttrium forecasted for 2014, or sooner considering the Chinese Government’s discussions on Heavy Rare Earths exportation this summer;
2. the favourable Rare Earths distribution emphasizing Heavy Rare Earths of the Kipawa Deposit;
3. the work done to date on the deposit;
4. the time needed for the completion of future steps partially described above;

We believe that it is possible that the Kipawa deposit will be a future source of Heavy Rare Earths. The geological data in this press release was prepared by Aline Leclerc, geologist and Matamec’s Vice-President Exploration, a Qualified Person as defined by NI 43-101.