Matamec Explorations Inc. (MHREF: OTC Link) | Toyota Tsusho Gives Matamec $1.5M CAD and the MOU Is Binding on the Parties

Toyota Tsusho Gives Matamec $1.5M CAD and the MOU Is Binding on the Parties

Mar 12, 2012

OTC Disclosure News Service

Montreal, QC, Canada –

Montreal, March 12, 2012 – Matamec Explorations Inc.

(“Matamec“) is pleased to

announce that Toyota Tsusho Corp. (“TTC”) and the Company signed an amendment to

the memorandum of understanding (“the MOU”) dated on December 7, 2011, whereby

the MOU is binding on the parties since February 28, 2012. The parties have agreed that

the due diligence period begins February 28, 2012. Also, the Company has received

$1.5M CAD, as provided for in the MOU, for reimbursement of Matamec’s expenditures

related to the heavy rare earths-yttrium-zirconium Kipawa deposit.

With this payment, the parties have agreed that they will have until June 27, 2012 for

TTC to make a decision whether or not to provide independent feasibility study (“FS”)

expenditures with respect to the Kipawa deposit. With TTC’s decision to proceed with

the FS, TTC will provide the agreed substantial amount to support the completion of FS

and the parties have agreed on options for TTC to acquire up to a 49% interest in the

Kipawa deposit. TTC shall contribute this substantial amount based on up to 49% of

Matamec’s average market capitalization during the 90 day period ending November 30,

2011. The Kipawa deposit covers an area of more than 1,000 hectares (see green area on

figure 1).

As for the Zeus property, which covers over 19,000 hectares (see red area outlined on

figure 1), the parties have agreed to negotiate in good faith the participation of TTC in the

various discoveries made outside the Kipawa deposit. The parties have agreed that they

will sign specific agreements on discoveries such as Surprise and Certitude (see March 1

and 5, 2012 press releases).

Andre Gauthier, President and CEO of Matamec, says: “This is a very significant

development for all parties. TTC has shown its interest in the Kipawa deposit by

providing an initial amount of money and binding the parties on the MOU. We have been

working together closely, on a daily basis, to develop the project. The negotiations for the

JV, off-take and financial agreements are on schedule. With TTC’s technical and

financial help, we have reduced significantly the risk associated with the development of

the Kipawa deposit.”

About Matamec

Matamec Explorations Inc. is a junior mining exploration company whose main focus is

in developing the heavy rare earths Kipawa deposit and exploring more than 35 km of

strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobiumtantalum

mineralization on its Zeus property.

The Company is also exploring for gold, base metals and platinum group metals. Its gold

portfolio includes the Matheson JV property located along strike and in close proximity

to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.

In Quebec, the Company is exploring for lithium and tantalum on its Tansim property

and for precious and base metals on its Sakami, Valmont and Vulcain properties. As well,

it is exploring for gold together with Northern Superior Resources Inc. on the

Lesperance/Wachigabau property.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is

defined in the policies of the TSX Venture Exchange) accepts responsibility for the

adequacy or accuracy of this release.”

For further information please contact:

André Gauthier                            Caroline Wilson (P.Geo.)
President                                      Director of Investor Relations
Tel: (514) 844-5252                    Tel: (647) 938-4080

Email: info@matamec.com                     Website: www.matamec.com

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/MHREF/news?id=43563

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