History of Zeus Property

Exploration work carried out in and around the limitsof the present day of the Zeus property was first reported in 1956. From 1985 to 1990, exploration work by Unocal included geological mapping, rock chip sampling, airborne radiometric-magnetic-VLF surveys, ground radiometric and magnetic surveys, a soil geochemical survey, trenching, channel sampling and diamond drilling (34 holes focused on the East and West Zones) on the Kipawa deposit. In 2008 and 2009, Matamec duplicated all historic channel samples in existing trenches and drilled 31 diamond drill holes focusing on the Central Zone with some duplication of Unocal drill holes for validation.

Exploration was initiated in the region after gold-uranium mineralization was found in 1957 at Hunter’s Point, some 26 km northwest of the Zeus property. Subsequent exploration, confirming the presence of the Kipawa Peralkaline Complex which underlies part of the Zeus property, can be divided into three broad periods:

Period I:

Prior to 1985, most of the exploration work was oriented towards uranium and was concentrated near the eastern shore of Lake Sheffield and near the south shore of the Kipawa River. A variety of companies were involved at this stage, notably Valdez, Nuspar, Hollinger, Imperial Oil and Talisman.

Period II:

From 1985 to 1992, exploration focused on minerals containing rare earth metals, which were found in significant amounts by drilling programs undertaken during the previous period of exploration. Unocal Canada Ltd was the sole owner and operator during this phase of exploration. Unocal then ceased its operations as a mineral exploration company in 1990, leaving the field open to prospectors, then juniors: firstly by Ressources Minérales Mistassini in 1997 and then by Matamec Explorations in 2003, the present holder of the claims.