Developing the Zeus property in Quebec

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com

Developing the Zeus property in QuebecAndré Gauthier – CEO, Matamec Exploration

March, 2011

TSX-V: MAT

Kipawa Heavy Rare Earths DepositA Compact, High Quality and Low Cost Mine for

2014

An Investment Opportunity

TSX-V: MATCorporate Presentation 3

The information contained herein has been prepared to assist interested parties in making theirown assessment of Matamec Explorations Inc. (the “Company”) and does not purport to containall of the information that an interested party may desire. In all cases, interested parties shouldconduct their own investigation and analysis of the Company, its assets, financial condition andprospects, and of the data set forth in this presentation. The Company does not assume anyresponsibility for independent verification of any of the information set forth herein, including anyfinancial forecasts or statements about the prospects of the Company contained herein. TheCompany does not make any representation or warranty as to the accuracy or completeness ofthis presentation or the information contained in, or for any omissions from, this presentation orany other written or oral communications transmitted to the recipient in the course of itsassessment of the Company. By the receipt of this presentation, the recipient acknowledges thatonly those particular representations and warranties, if any, which may be made to a party in adefinitive written agreement regarding a transaction involving the Company if, as and whenexecuted, and subject to such limitations and restrictions as may be specified therein,will have any legal effect.

Disclaimer

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Corporate Presentation 4

•Future producer of “Strategic Metals”•Small environmental footprint on theZeus property.

•Matamec evaluating options for its gold assets,particularly its Matheson JV property, alongstrike of the Goldcorp’s high grade gold HoylePond mine in the Timmins Gold Camp.

Future Producer of “Strategic Metals”

Source: Dudley J. Kingsnorth, IMCOA, November 2010

REE Market: Matamec’s Niche – Heavy Rare Earths

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0%

5%

10%

15%

20%

25%

30%

Magnets (Tb, Dy) Metal Alloys Phosphors (Y, Tb, Dy) Glass (Er) Polishing Ceramics Other

2010f

2015f

Metric Ton Kilograms Grams

Amount of REE per Application TREO forecast production2010f: 125,0002015f: 185,000

Production Curve: TREO

100000

120000

140000

160000

180000

200000

220000

2010 2014

IMCOA Kaiser Hykawy

•60,000t of new capacity will be required to meet global demand in 2015

tonnes


A Strategic Committee For Rare Earths Advises Matamec’s Board Of Directors

Anthony MarianoA PhD geologist, worked on the identification of eudialyte and other rare earth-bearing minerals at the Kipawa Alkalic Complex

Has worked as a consultant for Matamec on the mineralogy of the Kipawa Complex since 2007.

Alex KnoxA MSc geologist with more than thirty four years of field experience in exploration

Has worked on the Kipawa deposit from 1985 to 1990. Since 2007, has advisedMatamec on the exploration for rare-earths. He will be supervising the upcoming exploration program.

Les Heymann

A chemical engineer with over thirty five years of experience in the metallurgical and management ends of the mining industry. Has over eighteen years of experience of the production of rare earths

Since 2008, he has worked as a consultant to Matamec. Is currently directing Matamec’s metallurgical testing program.

Raynald VézinaA mining engineer with more than thirty-five years of experience in the mining industry.

Since 2008, he has advised Matamec regarding the development of the Kipawa deposit.

Zeus Property & HREE Kipawa Deposit - Location


The First Criteria for Industrial Mineral Deposits isLocation Near Infrastructure

•In Quebec, a premier mine jurisdiction•Near all weather roads•Near railway•Near mining towns with services•Near electrical power grid


Kipawa Deposit

Geology and Exploration Potential

Resource Calculations

Metallurgy

Timeline Going to Production in 2014

Budget

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Corporate Presentation10

Zeus Property – Geology and Exploration Potential

Kipawa Deposit + Other Zones and Showings + Untested targets over 25 km strike on the property along the Kipawa Alkalic Complex

Kipawa AlkalicComplex

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Kipawa Heavy Rare Earths Deposit: Surface Expression

Deposit continuous over a distance of 1.45 kilometres

300 m of the West part of the Deposit

Logging Road

Kipawa Deposit

Resource Calculation: Showing Growth Potential


Winter 2011 - Infill Drilling Program Completed Feb.

Spacing 50 X 50m New Resource Estimate Coming this Spring

Deposit Open Laterally and at Depth

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SW NE70% 20%

10%

Kipawa Deposit Schematic Cross-Section

Heavy Rare Earth Enriched Zones: Cut-off of Dy2O3 0.016% 4,920,000 Indicated tonnes + 4,260,000 Inferred tonnes (January 20, 2011, NI43-101)

Zirco

nium

Zone

(with

TRE

O)

TREO Enriched Zones

37% HREE/TREE

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$0

$200

$400

$600

$800

$1,000

$1,200

Pric

e in

Mill

ions

Inferred Value

Indicated Value

0

5

10

15

20

La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y

K to

ns

$0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000

Indicated and Inferred NI 43-101 Resources:at a Cut-off of Dy2O3 @ 0.016%

Kipawa Deposit Advantage

Gross value in situ

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Recovery of 89.2% of TREO to be found in eudialyte concentrate

= less volume to leach

= low cost

Because medium grained, well-crystallized and not intergrown

Unique in the world: simple mineralogy

Kipawa Deposit: Ore Processing

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Kipawa Deposit Rare EarthOre Processing

Ore

Crushing

Grinding

PhysicalConcentration

Cracking

Leaching

Solid / Liquid Separation

Purification/ Precipitation

Solvent Extraction

Heat Acid

Water

Stabilization

Products Products

Raffinate or Barren Liquor

Solid Tailings

Liquor

The physical characteristics of the Kipawa ore allow for low-cost chemical extraction, which gives it a competitive edge against current rare earth producers (January 20,2011)

81%TREO

Test results: recovery

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17

IM Exposure – Sept. 2009Rare Earth Elements (REE)-Yttrium-Zirconium Kipawa Deposit is the subject of a one page article in the Exposure section of the Industrial Minerals magazine September 2009.

“… exploitation of the Kipawa deposit faces two challenges:

-the first one is “to increase the Ree-Y gross tonnage contents of 42,000 tonnes to 100,000 tonnes to be interesting for an end-user,” …

-the second one is to work on solving the liquid/solid separation step, iesilica gel forming during the dissolution of the Ree in the ore. …”

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Project TimelineDevelopment Activity

2009 2010 2011 2012 2013 2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Exploration

Zeus

Kipawa

Resource Update

Metallurgical Tests

PEA

Prefeasibility

Feasibility

Business Plan

Permitting


19

Kipawa REE-Y-Zr Deposit: 3 Year Plan - BudgetCost and Schedule of Future Work

2011 2012 2013

1- Geology $1.970M $3.630M $1.500M

2- Engineering Studies including Mining- PEA

- Pre-Feasibility- Feasibility

$0.300M$1.100M

$3.850M3- Mineral Processing and Metallurgy

- Specific Testwork- Continuous Testwork- Pilot Plant - Construction

$1.000M$2.500M

$3.750M

4- Environment and Permitting$0.400M $0.600M $0.600M

5- Relation with the Community$0.150M $0.500M $0.850M

6- Market StudyIncl. in the

Eng. Studies- -

Total: $3.820M $8.330M $10.550M $22.700M


20

2011 – Exploration Program & BudgetProperties Program Budget6

M$ 100%

Strategic/Critical/Green/Energy Metals

Zeus(REE-Y-Zr-Nb)

-Kipawa Deposit-PB-PS Zone – Surprise/TH/FalaiseShowings -Other untested targets – large coverage of the KAC

Drilling Program/PEA StudyDrilling Program/Trenching

Mag-EM-Radiometric /SoilSampling Surveys/Trenching

3.820M$

63%

Tansim(Li-Ta-Nb-Cs)

-Tanco Model-Rare metals in simple and complex pegmatites

Mag-Radiometric Ground SurveyProspecting/Mapping/ TrenchingDrilling Program

0.380M$

6%

Vulcain(Ni-Cu-Co-PGM-Au)

- World Class untested targetidentified by WMC in 2005

Mag-EM-Radiometric survey 0.4M$ 7%

Gold

Matheson JV - NE of the Goldcorp High Grade Hoyle Pond Mine

- Basal till anomalies unexplained

Drilling Program 0.6M$ 10%

Wachigabau/Lespérance - Geophysical Gold Anomlies- Known gold showings

Mag SurveyDrilling Program

0.6M$ 10%

Sakami - Zone 25 as compared withGoldcorp’s Eloneore Deposit

Geochemical StudyCompilation

0.1M$ 2%

Valmont - Gold and massive sulphideanomalies

Prospecting/Mapping/Tenching 0.1M$ 2%


21

Markets: Rare Earth Supply Chain

Ore OxideMixture ProductMagnetAlloyMetal Scrap/Recycling

China•China produces 97%:•Sichuan MianningMining Co•Jiangxi Copper•Baotou Steel Rare Earth •Sichuan Hanxin MiningJapan•Japan Industrial CoJapanOil, Gas and Metals National CorpAustralia•Lynas – exp. 2011USA•Molycorp – exp. 2012

Canada/UK•GWMGChina•CAS Key Laboratory of Rare Earth Chemistry and Physics•Neo MaterialsJapan•Santoku, •Shin Etsu

Japan•Aichi Steel CorpUSA•Allstar•Quadrant•Adams•Bunting

•GM•Ford•Toyota•Nissan•Hyundai•Mitsubishi•Apple•LG•Samsung•Etc.

– One of the few known HREO resources in the world with well understood and simple low cost processing solution

– Mining friendly location with low cost electricity– Excellent access to infrastructure and mining services– Open pit , low cost mining

– Addresses worsening shortage of REE and HREE supply– Highly favourable exploration potential (chance of finding more)– Fits demand

– Advanced discussions with end-users

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Summary

Undervalued Compared with its Peers

Low Cost

High Value

Timely

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Capitalization and Cash PositionCurrent Market Price (Mar. 4th, 2011) $ 0.485

Price Range – 52 Weeks $0.11 to $0.70

15-Day VWAP $0.489

30-Day VWAP $0.493

Average daily volume – last 6 months 592,000

Insider Ownership 1.7%

Known Institutional Ownership 25%

Market Capitalization $56M

Common Shares Outstanding 116M

Stock Options (Average exercise price: $0.22) 7M

Warrants (Average exercise price: $0.41) 15M

Common Shares Fully Diluted 138 M

Cash Position $7M

Cash Position Fully Diluted $14.85M

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Is Matamec in your REE stock portfolio?

REE CompanyHeavy

REE Deposits

Last Development stageCompleted

Capital Out-

standing

ShareValue

($)(Mar. 4)

Market Capital

Avalon (T: AVL)LakeZone

Pre-Feasibility(July 2010)

93.338M 7.12 664M$

Quest (V: QRM) B Zone PEA Study (Sept 2010) 58.358M 5.80 338M$

Matamec (V:MAT) KipawaResource Calculation:Indicated and Inferred(January 20, 2011)

116.465M 0.485 56M$

Tasman (V: TSM)NorraKarr

Resource Calculation:Inferred (Nov. 30, 2010)

56.636M 5.00 283M$

UCORE (V: UCU)Bokan-DotsonRidge

- 142.902M 1.10 157M$

THE END, THANK YOU FOR YOUR ATTENTION!

QUESTIONS?

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26

Appendix


27

PRESIDENT & CEO

(2003)André Gauthier More than 25 years experience in the mining industryBrought in 5 properties to Matamec in 2003, including the HREE Kipawa deposit

V-P EXPLORATION

(2003)Aline Leclerc1976-2011 Geologist-consultant

SECRETARY TREASURER

(2005)Laval St-Gelais 1980-2011 Chartered accountant

DIRECTOR

(2009)Marcel Bergeron1981-1983 CMA1981-1983 Chartered accountant2007-2011 Director - Strateco Resources Inc (TSX-RSC)

INDEPENDENT DIRECTOR

(2009)Normand Tamaro1982-2011 Lawyer – LL.D (specialized in intellectual property law)

INDEPENDENT DIRECTOR

(2010)Sylvie Prud’homme1979-2011 Geologist2005-2011 Director of Investor Relations – Osisko Mining Corporation (TSX-OSK)

Management and Board of Directors


28

A Strategic Committee: Advises Matamec’s Board Of Directors

Sean Roosen President and Chief Executive Officer of Osiskosince March 2006.

Since 2011, has advised Matamec regarding it’s corporate strategy

Robert WaresMr. Wares was President and Chief Executive Officer of Osisko from August 1998 to March 2006 and has been Executive Vice-President and Chief Operating Officer of the Corporation since March 2006.

Since 2011, has advised Matamec regarding the development of the Kipawa deposit

Les HeymannA chemical engineer with over thirty five years of experience in the metallurgical and management ends of the mining industry. Has over eighteen years of experience in the production of rare earths

Since 2008, has worked as a consultant to Matamec. Is currently directing Matamec’s metallurgical testing program.

Raynald Vézina A mining engineer with more than thirty-fiveyears of experience in the mining industry.

Since 2008, has advised Matamec regarding the development of the Kipawa deposit.

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Recent Rare Earth Market DevelopmentChinese policy changes continue to dominate the landscape• Government rare earth pricing mechanism introduced and industry consolidation being pursued

• Clampdown on illegal mining and stricter environmental controls now in force

• Further significant reductions in export quotas announced 28 December 2010 (-35% H1 vs. H1 2010)

• Significant increase in REO prices in last 6 months, with strong price growth forecast to continue through 2015 and beyond

US government to re-establish domestic REE supply chain• Rare Earth and Critical Revitalization Act passed by House of Representatives in Oct 2010.

High level discussions between Washington and China regarding security of rare earth supply continuing

China confirms only 15-20 years of HREO and MREO reserves (Oct 2010)

Plans by countries including China, Japan and more recently US, to stockpile rare earths widely reported

Judith Chegwidden and Dudley Kingsnorth, at the Metal-Events Conference inHong Kong, 9-11 Nov. 2010

─ Identified five heavy rare earths projects in the world: Dubbo, Nechalacho, Strange Lake, Bokan-Dotson Ridge and Kipawa.

Matt Gowing, Mackie Research Capital Corporation, Alternative Energy – Rare Earth Industry Update (Feb. 2011)- Recommended plays- Focus on Heavy Rare Earths

Mr. Yasushi Watanabe (National Institute of Advanced Industrial Science andTechnology) highlighted, at this same conference

– That the Japanese government and private sectors are looking for sources of rare earths outside of China, particularly heavy rare earths deposits. “These sources must be timely, compact and inexpensive projects.”

John Kaiser, John Kaiser Bottom Fishing (Oct. 26th, 2010)─ Recommends buying Matamec shares

Because they offer the potential for 500% (or higher) gains in mediumto long term time frames.

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Media: Recommendations and Articles

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Corporate Presentation31

Zeus Property – Surprise Showing: One of many potential areas

Matamec identifies:2 large rare earths and niobium soil anomalies in the Surprise showing area

Surprise, best channelled interval: 2m @ 5.3% TREO (66% of HeavyREO+Y2O3/TREO), 3.6% ZrO2 and 3.9% Nb2O5.

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KIPAWA DEPOSIT GROSS VALUE UNRECOVERED IN THE GROUNDZone TREO ENRICHED ZONES (Cut-off of Dy2O3 ˃0.016%) – February 10, 2011

Tonnage 4,920,000** 4,260,000**

Classification Indicated t** Value in Situ (USD) Inferred t**Value in Situ

(USD)Lanthanum (61$/kg*) La 4,200 256,200,000 3,600 219,600,000

Cerium (66$/kg*) Ce 8,700 574,200,000 7,600 501,600,000Praseodymium (102$/kg*) Pr 1100 112,200,000 900 91,800,000Neodymium (103$/kg*) Nd 4,000 412,000,000 3,500 360,500,000

Samarium (60$/kg*) Sm 900 54,000,000 800 48,000,000Europium (620$/kg*) Eu 100 62,000,000 100 62,000,000Gadolinium (67$/kg*) Gd 900 60,300,000 800 53,600,000Terbium (620$/kg*) Tb 200 124,000,000 200 124,000,000

Dysprosium (360$/kg*) Dy 1100 396,000,000 1,000 360,000,000Holmium (44$/kg*) Ho 200 8,800,000 200 8,800,000Erbium (58$/kg*) Er 800 46,400,000 700 40,600,000

Thulium (N/A) Tm 100 100Ytterbium (N/A) Yb 700 600

Lutetium (288$/kg*) Lu 100 28,800,000 100 28,800,000Yttrium (75$/kg*) Y 6,700 502,500,000 6,400 480,000,000Zirconium (4$/kg*) Zr 43,400 173,600,000 43,000 172,000,000

2,811,000,000 2,551,300,000*Prices from Metal-Pages , Industrial Minerals and Asian Metals, February 10, 2011. REE oxides 99% min FOB China, Y oxide 99.999% min FOB China and Zr structruralceramic/electronic grade. 1 CNY = 0.151711 USD.**Source: SGS Geostat (November 29th, 2010).LREO: Light rare earths in oxides = La2O3 to Nd2O3. MREO: Medium rare earths in oxides = Sm2O3 to Gd2O3. HREO: Heavy rare earths in oxides = Tb2O3 to Lu2O3.


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Sustainable Development- Clean-tech and ‘new age’ applications- Small environmental footprint- Implication of the local communities from the beginning- Preferential hiring policy for locals

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Developing the Zeus property in Quebec

Economy & Finance