This independent NI 43-101 report, together with SGS Geostat Ltd. independent re-sampling of four of Unocal Canada Ltd. (Unocal) thirteen historic trenches (see press release on June 30^th, 2009), prepare the way for the planned NI 43-101 compliant resource report on the Kipawa Deposit. The next step towards that goal will be the proposed 2,000 metres HQ drilling program, which will establish Rare Earth Elements (REE) resources as well as verify the quantity and the quality of historic Y and Zr resources (including the possibility of increasing these resources). Following this program, Matamec will probably be able to begin a prefeasibility study on the Kipawa Deposit. This study will aim to continue the mineral processing and metallurgical testing begun in 1990, to verify the possibility to produce a mixed REE oxide concentrate, or, if economically viable, to produce individual REE oxide concentrates. It should be noted that, due to its favourable location, an open pit method of mining was contemplated for  this deposit in 1990.

In addition, a possible short on the world supply of heavy REE (HREE) such as Terbium (Tb), Dysprosium (Dy) and associated Yttrium (Y), has been forecast for 2014 by end users as well as by Dudley J. Kingsnorth (“The Rare Earths Market: Can Supply Meet Demand in 2014?”, PDAC, March 2009). As noted by Ron Mandel reporting points from D. J. Kingsnorth in “Rare earth metals: on the cusp of a rally?” (Northern Miner, June 22, 2009), the time estimate to bring a REE project to production is in the range of four to eight years. In view of the favourable REE distribution emphasizing HREE in the Kipawa Deposit (see Table 2) and considering both the work done on the deposit between 1985 and 1991 by REE companies such as Unocal and Molycorp and exploration work done by Matamec since 2007, Matamec believes that it is possible to complete the process for a 2014 deadline.