Phoenix Matachewan Mines Inc.: Promising Results from Swanson Drilling

Phoenix Matachewan Mines Inc.: Promising Results from Swanson Drilling

Phoenix Matachewan Mines Inc. announced that a drilling program, conducted on its Swanson Project, northwestern Quebec, has returned numerous promising results in a number of shallow drill holes collared to intercept gold mineralization in the Swanson deposit. The project is being conducted by Agnico-Eagle Mines Ltd. (“Agnico”) under the terms of an option agreement signed with Phoenix Matachewan Mines Inc. in November 2006.

Agnico has spent to date over $280,000 of its $400,000 2007 exploration commitment. The balance will be spent over the next quarter on exploration of the South Zone. Agnico is scheduled to pay Phoenix an anniversary payment of $500,000 on 15 November 2007.

The drilling program commenced in December 2006 and continued through mid- February 2007. A total of 1926m of core was produced in twenty new drill holes and one extension of an existing drill hole. The drilling in this first phase of work targeted the main mineralized gold system historically known as the North Zone of the Swanson Deposit, which was previously discovered in the 1980s by Lac Minerals Ltd.

Results from the drilling program are tabulated below, assays were provided to Phoenix by Agnico.

Table is available at the following address:

Gold occurs at the Swanson Deposit within altered and mineralized mafic volcanic rocks surrounding the main intrusive body, as well as in the intrusion itself. This halo of altered rocks hosts a mineralized felsic dyke swarm which extends radially outward from a larger intrusion. The gold grades are closely related to the abundance of fine pyrite found in the strongly carbonatized mafic volcanic rocks. This altered unit also hosts irregular quartz veins that locally contain visible gold. Felsic dykes constitute the most enriched units with local high grade values within a broader lower grade envelope. Pyrite mineralisation and carbonatization are the best indicator of elevated gold grade within the larger envelope.

Phoenix continues to explore in the prolifically mineralised region by retaining control of the nearby Barville Project, a claim group geologically prospective for base metal mineralization that is located immediately on strike from the past-producing Abcourt-Barvue Mine.

Dr. J.M. Franklin P. Geo is the qualified person under National Policy 43-101.

“The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release.”

Contacts: Robin Dow 1-888-864-7708

BAY STREET CONNECT: Gus Garisto 1-416-607-6023

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