19 August 2011

Follow-up on Mabec Uranium Inc. and the uranium-gold Sakami property

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Follow-up on Mabec Uranium Inc. and the uranium-gold Sakami property

Matamec Explorations Inc. (“Matamec”) is pleased to announce that its wholly-owned subsidiary will be known as Mabec Uranium Inc. (Mabec). As announced in a Press Release dated July 19, 2007, Matamec’s uranium properties will be transferred to Mabec, which will be listed on the TSX-Venture Exchange (the “Stock Exchange”). Desjardins Securities Inc. has agreed to sponsor the listing of Mabec on the Stock Exchange.

Matamec expects to receive the required regulatory approvals in October and will then announce the date of its Annual and Special General Meeting of Shareholders. Upon receipt of shareholder approval of the Arrangement, the Company will transfer its uranium properties into Mabec. The listing of Mabec is also conditional on a financing by way of a Rights Offering Prospectus with Matamec shareholders.

According to the Arrangement, the Sakami, Tansim, Uranium-Nord, Zeus and other uranium properties will be transferred to Mabec. The uranium-gold Sakami property is adjacent to the Apple uranium property on which a major agreement was recently announced between Virginia Mines Inc. (“Virginia”) and Strateco Resources Inc. (“Strateco”) whereby Strateco purchased the Apple property from Virginia. This property contains the Apple uranium deposit which was discovered in the early 1970’s by INCO and contains historical resources (resources calculated before the introduction of the NI 43-101 standard) estimated at 9,365,000 tons grading of 0.054 % U3O8 or 1.08 lb/t (see the enclosed figure).

The Archean age Apple deposit is located at the top of the arenitic sequence of the Atsynia Group, called the Apple Formation. The Atsynia Group reaches 500 metres in thickness and is subdivided into three units: 1) the lower unit, comprised of wackes and arkosic arenites, 2) the median unit, dominated by very pure quartz arenites and 3) the top unit, formed by lenticular horizons uraniferous pyritic quartz pebble conglomerates interlbeded with quartz arenites.

The conglomerates of the Apple Formation are considered to be among richest uraniferous paleoplacer of all those recognized to date in the Canadian Shield. The complex mineral paragenesis that includes chromite-brannerite-gersdorffite-arsenopyrite associated with ultramafic sills, bears a striking resemblance with the Witwatersrand uraniferous-gold-bearing paleoplacer. The brannerite forms the most important uraniferous mineralogic phase of the conglomerates. The ultramafic contribution is very important, from a detritical, as well as an hydrothermal point of view. The detritical accumulation of chromite in this paleoplacer implies an ultramafic source.

On the other hand, the Apple conglomerates differ from those of Witwatersrand by their
low gold grades. However, some gold values, up to 0.27 ppm, can be observed in fault zones, particularly in the fuschite bearing conglomerate horizon. It is thus plausible to find gold enrichments within better targeted fault zones.

Considering the increasing interest in uranium exploration, the proximity of the Sakami and the Apple properties is quite significant. The exploration for uranium made by INCO suggests that the Atsynia Group could find its extension on the Sakami property. INCO interestingly found quartz arenites and ultramafic rocks, in the eastern extension of the corridor collecting the uraniferous conglomerates on the Strateco-Virginia’s Apple property. On the Sakami property, the only drill hole reported in these ultramafic rocks
has intersected some quartz arenites. In addition, INCO found several radiometric anomalies in the southern part of the Sakami property.

Matamec’s goal is to verify the hypothesis that the Apple sedimentary basin continues beyond the Sakami fault, by exploring the sector where arenite and ultramafic rocks appear in the same orientation as those recognized to the west on the Apple property. East of the Sakami fault and in continuity with the arenites, an anticline and a syncline are recognized, in an ESE direction. The syncline constitutes a choice environment for the conservation of all the units of the Atsynia Group.

Furthermore, the uranium-gold Sakami property covers a segment of more than 25 km along the Sakami overlap, between the geological Opinaca and La Grande sub-provinces, also known as the “Sakami fault”. This regional structure is an important metallotect and is recognized for its gold-bearing mineralization. Drilling in the southern part of Sakami property, 25 Zone returned grades of 2.62 g/t Au over 54.65 metres in Opinaca quartzparagneiss and 13.67 g/t Au over 7.67 metres in the 26 Zone which is associated to an iron formation of La Grande.

The geological data in this press release was prepared by Aline Leclerc, geologist, Vicepresident Exploration and a Qualified Person as defined by NI 43-101.

About Matamec
Matamec is a mining exploration company which is exploring for significant gold deposits in Ontario and uranium deposits in Québec. For gold, it has mainly targeted the East Timmins mining camp, in particular properties that are underexplored or have only been explored near-surface. Matamec also holds several exploration properties in Quebec, including more then 4 properties for uranium.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.