Toyota Tsusho Corp. and Matamec Explorations Inc. Sign a MoU Concerning the Kipawa Heavy Rare Earths Deposit

MONTREAL, QUEBEC -- (Marketwire) -- 12/12/11 -- Matamec Explorations Inc. ('Matamec' or the 'Company') (TSX VENTURE: MAT) is pleased to announce that it has signed a non-binding Memorandum of Understanding ('MoU') with Toyota Tsusho Corp. ('TTC'), the trading company of the Toyota Motor Group. TTC is interested in the Kipawa Heavy Rare Earths Deposit in order to secure a Heavy REE supply for the production and marketing of hybrid and electric vehicles.

The main intent of the MoU is to accelerate the production from the Kipawa Heavy Rare Earths Deposit. To achieve this goal, TTC and Matamec intend, based on the conditions provided herein, to fast track the development of the Kipawa Deposit in mutual collaboration. Technical assistance may be provided in association with TTC's chain of suppliers.

The final consideration of the MoU is to establish a joint venture ('JV'), only for the Kipawa Deposit, between TTC and Matamec (TTC: 49%-Mat: 51%), and to finalize an independent and definitive feasibility study ('FS') and, upon satisfactory results, TTC shall arrange the financing through to production of the Deposit of a mixed rare earths oxide concentrate at a proportion of the fair market price of the individual elements. For the costs of the FS, TTC shall contribute an amount based on up to 49% of MAT's average market capitalization during the 90 day period ending November 30, 2011.

The MoU is divided into three stages with a go/no go decision possible for both parties at the end of the two first stages:

1.  A due diligence period which may extend to the end of March 2012 subject
    to the delivery of the PEA ('preliminary economic assessment') report
    whereby TTC will evaluate, at its own cost, all of the Kipawa Deposit
    data and during which a JV and off-take agreement will be prepared.


2.  A second period, if TTC decides to pursue further after the initial due
    diligence, where TTC would provide FS expenditures incurred from
    December 2011 to March 2012, and to provide time for both parties to
    negotiate and receive internal approval for the JV, the off-take
    agreement and other agreements customary for this type of transaction.


3.  A JV agreement would then be established for the Kipawa Deposit between
    TTC (49%) and Matamec (51%) with an off-take agreement, the whole with
    the contribution from TTC based on up to 49% of MAT's market cap for the
    90-day period ending on November 30, 2012.

During the FS, the parties will test the potential to increase the resources of the Kipawa Deposit. During summer 2011, Matamec explored by trenching the lateral extension of the Deposit and discovered at 300 meters west an outcrop with significant eudialyte mineralization.

Regarding the Zeus property excluding the Kipawa Deposit, Matamec has located numerous REE prospects and they are presently being explored as Surprise which contains high grade mineralization of zirconium, niobium, tantalum and REE with more than 60% of heavies. The potential for finding new discoveries remains excellent. In addition, TTC and Matamec have agreed to negotiate in good faith for TTC to participate in the exploration and development of all other REE prospects found on the Zeus property.

Andre Gauthier, President of Matamec, notes 'the Company has discussed and has negotiated with many end-users since January 2009. After nearly two years, TTC and Matamec have reached a way to develop the potential of the Kipawa Heavy Rare Earths Deposit in a manner that meets the needs of both companies.'

About Toyota Tsusho Corporation

Established for more than 60 years, Toyota Tsusho is a general trading company that develops business together with over 400 consolidated group companies in Japan and overseas, with customers around the world, via a global network covering Japan and more than 60 other countries worldwide.

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-niobium-tantalum 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.'

Contacts:

Andre Gauthier

President

(514) 844-5252


Caroline Wilson (P.Geo.)

Director of Investor Relations

(647) 938-4080
info@matamec.com
www.matamec.com