Enriched Heavy Rare Earth Kipawa Deposit:

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1 Enriched Heavy Rare Earth Kipawa Deposit: 10 Steps to Commercial Rare Earth Production (D. Kingsnorth, 2011) Metal-Pages: Metal for Energy and the Environment - June 3, 2011 Developing New Projects

2 Disclaimer The information contained herein has been prepared to assist interested parties in making their own assessment of Matamec Explorations Inc. (the Company ) and does not purport to contain all of the information that an interested party may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets, financial condition and prospects, and of the data set forth in this presentation. The Company does not assume any responsibility for independent verification of any of the information set forth herein, including any financial forecasts or statements about the prospects of the Company contained herein. The Company does not make any representation or warranty as to the accuracy or completeness of this presentation or the information contained in, or for any omissions from, this presentation or any other written or oral communications transmitted to the recipient in the course of its assessment of the Company. By the receipt of this presentation, the recipient acknowledges that only those particular representations and warranties, if any, which may be made to a party in a definitive written agreement regarding a transaction involving the Company if, as and when executed, and subject to such limitations and restrictions as may be specified therein, will have any legal effect. 2

3 10 Steps to Developing The Enriched HRE Kipawa Deposit IMCOA years Step 1: establish resource Spring years Step 2: understand mineralogy Fall years Step 3: scoping study Summer/Fall 2011 (Ore processing started March 10) 2-10 years Step 4-6: pilot plant Beneficiation, extraction & separation Step 7: environmental approval Step 8: letters of intent 2-4 years Step 9: DFS & funding Baseline Study, Characterizing the environmental sensitivity and land use Discussions & CA (Started Feb. 09) 2-3 years Step10: engineering, procurement, construction Total average: 10 years Matamec intends to complete these 10 steps in 7 years D. Kingsnorth (March 2011): The norm is that take between 7 to 20 years to develop a project Source: Dudley Kingsnorth (IMCOA), March Completed - end 2011 In Progress 3 3

4 Step 1: Establish Resource (2-5 years) Grade of the resource and the REO distribution are key to the viability of the project High concentration of the higher value heavy RE is advantageous Location of the deposit with respect to the availability of supporting infrastructure (transportation, power, water, chemicals and skilled labour) brings costs down D. Kingsnorth (March 2011) 4

Quebec, a premier mine jurisdiction Near all weather roads Near

5 Zeus Property & EHRE Kipawa Deposit - Location The First Criteria for Industrial Mineral Deposits is Location Near Infrastructure In Quebec, a premier mine jurisdiction Near all weather roads Near railway Near mining towns with services Near electrical power grid 5

Enriched Heavy Rare Earth Kipawa Deposit - Growth Historical Drill Holes 2Mt (1990)

9 Mt @ 0.61% TREO Indicated (33% HREO+Y 2 O 3 ) 4.3 Mt @ 0.

00% ZrO 2 Inferred 2010 Drilling Program Update Resource Estimate Completed: 50 Mt

6 Enriched Heavy Rare Earth Kipawa Deposit - Growth Historical Drill Holes 2Mt (1990) 2009 Drill Program 39 Mt (June 4, 2010) NI Ressources (November 2011): % TREO Indicated (33% HREO+Y 2 O 3 ) % TREO Inferred (35% HREO+Y 2 O 3 ) % ZrO 2 Indicated % ZrO 2 Inferred 2010 Drilling Program Update Resource Estimate Completed: 50 Mt (January 20, 2011) Winter Infill Drilling Program Completed in February Updated NI (June 2011) 6

7 Zirconium Zone (with TREO) Kipawa Deposit Schematic Cross-Section SW TREO Enriched Zones 70% 20% 10% NE 37% HREE/TREE Heavy Rare Earth Enriched Zones: 0.62% TREO (cut-off of Dy 2 O %) 4,920,000 Indicated tonnes + 4,260,000 Inferred tonnes (January 20, 2011, NI43-101) 7

8 Step 2: Understand Mineralogy (1-3 years) Most critical step in the early evaluation of a project to be carried out in conjunction with resource evaluation Identification of the mineral(s) containing the RE an important stage in determining the amenability of the ore to cost-effective processing Few RE minerals as bastnaesite, South China clays, monazite, xenotime and loparite are well-known their processing is well understood for the producing deposits Liberation size of the RE mineral(s) should not to be too fine so that they are amenable to conventional beneficiation techniques such as flotation, gravity and magnetic separation D. Kingsnorth (March 2011) 8

Kipawa Deposit: Simple Mineralogy Primarily one mineral: Eudialyte - medium

Minerals Mineral Formulas Elements REO - Wt % Eudialyte (Unique in the world)

73 )(O,OH,H 2 O) 5 NaCa 2 (Ca,Ce,Y) 4 Ti(Si 2 O 7 ) 2 F 5 and (Y,Ca)TiSiO 5

9 Kipawa Deposit: Simple Mineralogy Primarily one mineral: Eudialyte - medium grained, well-crystallized and not intergrown. Minerals Mineral Formulas Elements REO - Wt % Eudialyte (Unique in the world) Mosandrite/Yttro-titanite Britholite Vlasovite Na 15 (Y,Ca) 6 Fe 6 Zr 3 (Si 26,0 73 )(O,OH,H 2 O) 5 NaCa 2 (Ca,Ce,Y) 4 Ti(Si 2 O 7 ) 2 F 5 and (Y,Ca)TiSiO 5 (Ce,Y,Ca) 5 (SiO 4,PO 4 ) 3 (OH,F) Na 2 ZrSi 4 O 11 Zr, Y, HREE 10 % Y, HREE, Ti? 45 % (Mosandrite) Y, HREE, P 2 O 5 62 % Zr 9 9

10 Step 3: Scoping Study (1-3 years) Establish viability to justify undertaking a Definitive Feasibility Study Usually includes: - A resource estimate to an inferred level - A process proven at a bench scale (possibly two alternatives to be evaluated in the pilot plant) - A site selected for the processing facilities - Baseline environmental studies - An order of magnitude (+/- 35%) capex and opex indicating the project is viable - Support from the local community and by the relevant government agency D. Kingsnorth (March 2011) 10

11 8 1 % T R E O 92.8% TREO in 52% of original mass 89.2% TREO Lab.recoveries Ore Crushing Grinding Physical Concentration Cracking Leaching Solid / Liquid Separation Liquor Purification/ Precipitation Solvent Extraction Heat Acid Water Solid Tailings Stabilization Raffinate or Barren Liquor Kipawa Rare Earth Deposit Ore Processing: 4 Steps The physical characteristics of the Kipawa eudialyte ore allow for low-cost chemical extraction, which gives it a competitive edge against current rare earth producers Press releases - August 9, October 18, January 20, March 8, 2011 Products Products 11

12 Step 1. Open pit mining On Site Products: Ore for the Mill/Waste rock in dump Step 2. Physical Concentration Mill On Site or in town Products: Mixed Rare Earth Concentrate/Tailings in ponds Waste Ore Crushing Grinding Physical Concentration To Step 3 12

13 Step 3. Chemical Separation Plant Heat Step 4. Individual Rare Earth Separation In town Products: Rare Earth concentrate in oxyde form/solids in tailings pond Mixed REE Concentrate From Step 2 In town or international Products: 99% pure individual rare earth concentrates REO Concentrate from Step 3 Cracking Leaching Solid / Liquid Separation Precipitation Liquor Acid Water Stabilization Solid Tailings Dissolution Separation and Purification Precipitation or Solvent Extraction or Electrolysis Liquor recirculation Products Products 13

14 Kipawa REE-Y-Zr Deposit: 3 Year Plan - Budget Cost and Schedule of Future Work Geology $1.970M $3.630M $1.500M 2- Engineering Studies including Mining - PEA - Pre-Feasibility - Feasibility 3- Mineral Processing and Metallurgy - Specific Testwork - Continuous Testwork - Pilot Plant - Construction 4- Environment and Permitting 5- Relation with the Community 6- Market Study $0.300M $1.100M $3.850M $1.000M $2.500M $3.750M $0.400M $0.600M $0.600M $0.150M $0.500M $0.850M Incl. in the Eng. Studies - - Total: $3.820M $8.330M $10.550M $22.700M Amounts spent locally 14

15 Step 4-6: Pilot plant(s) - Three stages: beneficiation, extraction & separation (2-10years) The heart of developing a successful project which has the following objectives: To demonstrate the technical viability of the project To generate data for the DFS To produce samples for customer evaluation from a threestage pilot plant that has operated continuously for at least 10 days To generate the data for the Environmental Impact Statement ( All rare earth minerals contain U and Th for which acceptable waste disposal techniques have to be demonstrated) D. Kingsnorth (March 2011) 15

16 Step 7: Environmental Approval Preparation, baseline studies, public review and environmental approval Extraction and separation processes, associated chemical transport and storage, and radioactive waste management (these facets of a project are always subjected to detailed study by the local environmental authority and the public) Additional pilot plant studies may be required to satisfy specific requirements D. Kingsnorth (March 2011) 16

Characterizing the environmental sensitivity and land use before the introduction of a rare earths mine Goals Territory Assessment Information gathering from internet, communications, mapping and

17 Characterizing the environmental sensitivity and land use before the introduction of a rare earths mine Goals Territory Assessment Information gathering from internet, communications, mapping and fieldtrips First Environmental Study: Baseline Study of terrestrial (plants and soil) and aquatic (fish, drinking water, surface water sediments, plants) environments to establish a baseline before the introduction of a mine Community Information Gathering Communication conducted through letters, s and phone calls. 17

Harmonization and follow-up table objectives - Relationship with the First

18 Sustainable Development - Small environmental footprint - Environmental protection programs - Implication of the local communities from the beginning - Harmonization and follow-up table objectives - Relationship with the First Nations communities of Eagle Village and Wolf Lake - Preferential hiring policy for locals 18

19 Step 8: Letters of Intent (LOI) To be successful a RE company has to integrate its operation into the supply chains of its customers, which requires mutual trust Customer relations needs to start in the early stages of the project, as their specifications are the basis for planning the pilot plant Generally, LOIs are required for a substantial portion of the proposed production prior to the final pilot plant run and the commencement of the Definitive Feasibility Study (DFS) D. Kingsnorth (March 2011) 19

20 KIPAWA DEPOSIT GROSS VALUE UNRECOVERED IN THE GROUND Zone TREO ENRICHED ZONES (Cut-off of Dy 2 O %) May 30, 2011 Tonnage 4,920,000** 4,260,000** Classification Indicated t** Value in Situ (USD) Inferred t** Value in Situ (USD) Lanthanum (147$/kg*) La 4, ,400,000 3, ,200,000 Cerium (148$/kg*) Ce 8,700 1,287,600,000 7,600 1,124,800,000 Praseodymium (215$/kg*) Pr ,500, ,500,000 Neodymium (255$/kg*) Nd 4,000 1,020,000,000 3, ,500,000 Samarium (117$/kg*) Sm ,300, ,600,000 Europium (1580$/kg*) Eu ,000, ,000,000 Gadolinium (180$/kg*) Gd ,000, ,000,000 Terbium (1580$/kg*) Tb ,000, ,000,000 Dysprosium (980$/kg*) Dy ,078,000,000 1, ,000,000 Holmium (101$/kg*) Ho ,200, ,200,000 Erbium (112$/kg*) Er ,600, ,400,000 Thulium (N/A) Tm Ytterbium (N/A) Yb Lutetium (505$/kg*) Lu ,500, ,500,000 Yttrium (155$/kg*) Y 6,700 1,038,500,000 6, ,000,000 Zirconium (4.6$/kg*) Zr 43, ,640,000 43, ,800,000 6,379,240,000 5,770,500,000 *Prices from Metal-Pages, Industrial Minerals and Asian Metals, May 30, REE oxides 99% min FOB China, Y oxide % min FOB China and Zr structural ceramic/electronic grade. 1 CNY = USD. **Source: SGS Geostat (November 29th, 2010). 20

21 Markets: Rare Earth Supply Chain Ore Mixture Oxide Metal Alloy Magnet Product Scrap/ Recycling China China produces 97%: Sichuan Mianning Mining Jiangxi Copper Baotou Steel Rare Earth Sichuan Hanxin Mining Japan JOGMEC Australia Lynas exp USA Molycorp exp Etc. Canada/UK GWMG China CAS Key Laboratory of Rare Earth Chemistry and Physics Neo Materials Japan Santoku, Shin Etsu Etc. Japan Aichi Steel Corp USA Allstar Quadrant Adams Bunting Etc. GM Ford Toyota Nissan Hyundai Mitsubishi Apple LG Samsung Etc. Rare earths are not commodities - they are customer-specific chemicals, produced to precise chemical and physical specifications A customer needs are continually evolving - which requires the suppliers to become an integral link in the supply chain 21

22 Rare Earths Used in Hybrid Cars: Good Fit for The Car Industry La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y Glass and Mirrors UV cut glass polishing powder Cerium Cerium Lanthanum Diesel Fuel Additive Cerium Lanthanum HV electric motor & generator Neodymium Praseodymium Terbium Dysprosium Battery Lanthanum Cerium Catalytic converter Lanthanum Cerium Zirconium 22

23 Rare Earths Permanent Magnets Used in Hybrid Cars La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y Electric brakes Car speakers Seat belt sensors Motors for electric power steering Car navigation hard disk drives Starter generator Motors for electric pumps Ignition coil Source: Shin-Etsu Rare Earth Magnets Drive motors and generators Electric car air conditioning compressor Actuator for intervehicular distance sensors 23

24 Step 9: DFS & Funding (2-4 years) Definitive Feasibility Study (DFS) is the document upon which funds are raised for project construction and LOIs are converted to sales contracts Required level of accuracy (+/-15%) for the capex and opex dictates that 25% of the engineering will have had to be completed A DFS cost of 8-12% of the capex For example: cost of a DFS for a project with a capacity of 10,000 tpa REO could well be $30-50M Timeline of months RE resource needs to be upgraded to a measured reserve for the project to be funded Funding of RE project can take 6 to 12 months D. Kingsnorth (March 2011) 24

25 Step 10: Engineering, procurement, construction & start-up (2-3 years) RE production facility is a complex processing operation that requires a sophisticated level of engineering more appropriate to a chemical plant than a mining operation This step requires a high level of chemical expertise and RE operational experience which is not readily available today outside China This final step of the development may well take 2 to 3 years and the build-up to full operational capacity another 2 to 3 years D. Kingsnorth (March 2011) 25

26 10 Steps to Developing The Enriched HRE Kipawa Deposit IMCOA years Step 1: establish resource Spring years Step 2: understand mineralogy Fall years Step 3: scoping study Summer/Fall 2011 (Ore processing started March 10) 2-10 years Step 4-6: pilot plant Beneficiation, extraction & separation Step 7: environmental approval Step 8: letters of intent 2-4 years Step 9: DFS & funding Baseline Study, Characterizing the environmental sensitivity and land use Discussions & CA (Started Feb. 09) 2-3 years Step10: engineering, procurement, construction Total average: 10 years Matamec intends to complete these 10 steps in 7 years D. Kingsnorth (March 2011): The norm is that take between 7 to 20 years to develop a project Source: Dudley Kingsnorth (IMCOA), March Completed - end 2011 In Progress

27 The Enriched HRE Kipawa Deposit A Timely, High Value and Low Cost Mine for 2015

Kipawa Heavy Rare Earths Deposit An Example of a Potential Producer of Technology Metals TSX-V: MAT

Kipawa Heavy Rare Earths Deposit An Example of a Potential Producer of Technology Metals March 23, 2011 Disclaimer The information contained herein has been prepared to assist interested parties in making