RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY 13-14 MARCH 2012

www.ObjectiveCapitalConferences.com

Zeus: home of the heaviesCaroline Wilson – Director Business Relations, Matamec

The Kipawa HREE-Y-Zr Deposit

March, 2012

This document contains “forward-looking information” including without limitation statements relating to mineral reserve estimates, mineral resource estimates, realization or mineral reserve and resource estimates, capital and operating costs estimates, the timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, permitting, economic return estimates, potential upsides, and the future price and supply and demand for rare earths. Readers should not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The preliminary economic assessment study results are estimates only, are preliminary in nature and are based on a number of assumptions, any of which, if incorrect could materially change the projected outcome. Until a positive feasibility study has been completed, and even with the completion of a positive feasibility study, there are no assurances that Kipawa will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices; alternative rare earth sources or substitutes; actual rare earth recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry, political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion or development or construction activities.

Although the corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially for those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and the Corporation disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

NI 43-101 ComplianceThe technical information pertaining to the Kipawa HREE Project in this presentation is based on the news release entitled “ Matamec PEA Study Shows Robust Economics for the Kipawa HREE Project” published on January 30th, 2012 that describes the results of the Kipawa HREE Project Preliminary Economic Assessment (“PEA”) study and was prepared in accordance with Canadian regulatory requirements by, or under the supervision of Guy Saucier, ing. of Roche Ltd.

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Cautionary Statement Concerning Forward-Looking Statements

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Market Summary (TSXV:MAT)

Shareholder Base Research Coverage

Institutional ownership 30% Byron Capital Markets Dr. Jon Hykawy

Insider ownership 2% Cormark Securities Edward Otto

Pinetree Capital, Mineralfields ~20% Jacob Securities Luisa Moreno

Source: Capital IQ, Bloomberg and company.Data as of March 5, 2012.

COMPANY STATISTICSCurrent share price $0.3152 week range $0.20 to $0.70Basic shares 120 millionFully diluted shares 138 millionMarket capitalization $37 millionEntreprise value $33 millionCash & cash equivalents $4 million

CAPITAL STRUCTUREIssue and outstanding 120 millionWarrants 11 million

Weighted average exercise price $0.41Options 7 million

Weighted average exercise price $0.221 Weighted average exercise price 0.0

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3/3/2011 4/3/2011 5/3/2011 6/3/2011 7/3/2011 8/3/2011 9/3/2011 10/3/2011 11/3/2011 12/3/2011 1/3/2012 2/3/2012 3/3/2012

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hare

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Properties: Main Focus - Kipawa Deposit

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• Located in the Témiscamingue region of Quebec, some 160 km south of Rouyn-Noranda and 50 km east of the town of Témiscaming

• Accessed by a nearby network of logging roads, railway, electric grid and airport• Use of Hydro-Quebec’s power grid at the mine site instead of diesel power• High capacity of rail freight service by CN-CP-OVR-ON

REE: 5 Critical Elements for 4 Clean Energy TechnologiesLa Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y

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HV electric motor & generator・ Neodymium 　・ Praseodymium　 ・ Terbium・ Dysprosium

Source: U.S. Department of Energy, “Critical Materials Strategy”, Dec. 2011.

Rare Earths are Not Commodities!

The Needs of the End User must be Met

•They are customer-specific chemicals, produced to precise chemical and physical specifications.

•The customer needs are continually evolving.

•It requires the suppliers to become an integral link in the supply chain. Source: Dudley Kingsnorth (IMCOA), March 2010.

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Developing a Rare Earth Project

Must develop 3 aspects simultaneously:

•Drill off a NI43-101 resource

•Define mineralogy and extraction process

•Find an end user

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Company Overview• Focused on developing the Kipawa deposit, 100% owned

property located in Quebec - One of the top 5 HREE assets outside of China

• Signed an MoU with a high profile end-user, Toyota Tsusho Corp. (“TTC”), as a strategic partner

– TTC will provide an off-take agreement for 100% of production at market prices and CAPEX financing

• Experienced management team and directors• Fast tracking to production

– Mining lease application and environmental permitting to be filed by Q1 2012

– Hydrometallurgical pilot plants to be completed by Q2 2012

– Feasibility study by Q1 2013

– Environment and permitting by Q2 2014

– First production as early as Q2 2016 (Able to accelerate production by mid 2015 with help of TTC)

Strong project economics Before tax NPV8% of $606 million (36.9% IRR)

Robust production profile

Average annual production of 5,072 tonnes of mixed TREO concentrate with at least 200 tonnes of dysprosium

Low projected cash costs $16.97/kg mixed TREO concentrate

Simple metallurgy

Straightforward mineralogy, ideal deposit geometry, simple processing flow-sheet, most infrastructure in place

Upside potential

Significant upside potential from several by-products and deposit expansion drilling

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Sudbury

MontréalOttawa

Val d’Or

Témiscaming

Rouyn-Noranda

Kipawa HREE Project: Location and Infrastructure

Kipawa Deposit

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Mining services are found in Sudbury, Rouyn-Noranda and Val d’Or

North Bay

Mining – open pit, low strip ratio, small op

Mineral Resource

Deposit Open Laterally and at Depth

SW NE

Eudialyte Zone

TREO Enriched Zones

Zi

rcon

ium

Zon

e

Schematic Cross-Section with TREO enriched envelopes

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2011 discovery

• Indicated resources represent 79.8% of the total resource• Mineral concentrate grade of 1.11% TREO; overall REE recovery of 81%• Heavy rare earth oxides and yttrium combine for an average of 36% TREOs totaling 22,940 tonnes of indicated and 6,300

tonnes of inferred HREO + Y2O3

Cut-off Grade Category TonnageGrade (%) Tonnes

ZrO2

Y2O

3 HREO1 TREO2 (H+Y)3/TREO HREO Dy

2O

3Y

2O

3Tb

2O

3Eu

2O

3Nd

2O

3

0.2% TREOIndicated 17,645,000 0.909 0.097 0.060 0.435 36% 1,58,700 2,823 17,116 423 300 10,234

Inferred 6,805,000 0.866 0.080 0.051 0.371 35% 347,055 885 5,444 136 95 3,403

0.3% TREOIndicated 12,472,000 0.913 0.114 0.070 0.512 36% 873,040 2,245 14,218 349 249 8,481

Inferred 3,842,000 0.912 0.101 0.063 0.463 35% 242,046 653 3,880 100 69 2,420

1 Sum of all heavy rare earths in oxides (terbium to lutetium)2 Sum of all rare earths in oxides plus yttrium in oxide; TREO = LREO + HREO + Y

2O

33 HREO plus Y

2O

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In-Pit Mineral Resources* Tonnes Grade (%)

Indicated (79.8% of the deposit) 15,161,000 0.434

Inferred (20.2% of the deposit) 3,843,000 0.403

Total 19,004,000 0.428

Resource Update

Open pit design at Kipawa HREE Project mine site

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Kipawa Deposit: Simple Mineralogy

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-Main bearing-REE mineral is Eudialyte, contains 70% of TREO of the deposit

-Simple mineralogy: medium grained, well-crystallized and not intergrown- can eliminate 65% of ore through magnetic concentration with 90% recoveries= less ore to heat and leach = less cost

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Low Cost Ore Processing with Simple Mineralogy3 steps for low-cost chemical extraction for a competitive edge vs. current producers

90 % of TREO in 35% of Original Mass Recovered in

Step 1

88% of TREORecovered in Step 2

Up to Purification / Precipitation

79% of TREO Recovered inSteps 1& 2 to the liquor

stage

Step 3

Rare Earth Separation

Individual REE Oxide

Mixed TREO Concentrate

Step 1

Crushing

Grinding

Physical Concentration

Mineral Concentrate

Ore from Open Pit (0.42%)

Step 2

Regrind

Leaching

Solid/Liquid Separation

Liquor

Heat: Room temp.Acid: 150 kg/tTime: 2 hours

+ Water

Solid Tailings Stabilization

Purification/Precipitation

Mineral Concentrate (1.11%)

Mixed TREO Concentrate

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OPEXOPEX Items Annual

Cost(Million $/y)

Cost Per kg of Mixed TREO concentrate

($/kg)General & Administration

8.841 1.682

Mining(including Mine Manpower)

16.619 3.161

Total Process 58.350 11.099Tailings 0.240 0.046Transportation 5.160 0.982

Total 89.210 16.970

CAPEX Items Initial Cost (million CAD)

Kipawa site 100.778

Temiscaming site 85.999

Other Infrastructure 10.730

Total Direct Cost 197.507

Total Indirect Cost 55.103

Contingency (25%) 63.153

Total 315.763

CAPEX

•Kipawa deposit: Mining and mineral pre-concentration Plant•Temiscaming: Hydrometallurical processing Plant

PEA Highlights (January 30, 2012)

Financial Analysis - Assumptions

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Technical Assumptions

Item Unit Base Case Value

Total Ore Mined M tonnes 19.0

Processing Rate Tonnes / year1,500,000

Life of Mine years12.9

Average Combined Process Recovery

%81.0

Average Mining Cost ($ / tonne mined) 4.67

Average Processing Cost ($ / tonne milled)38.90

Average General & Administration Costs

($ / tonne milled)5.90

Concentrate Transport between Process Plants

($ / tonne concentrate)8.00

Mixed TREO Transport to Asia

($ / tonne concentrate)183.00

Refining Charges $ /Kg 18.34

Economic Assumptions

REOs Price deckMarket Prices (US $/ Kg)

Ce2O3 5

La2O3 10

Nd2O3 75

Pr2O3 75

Sm2O3 9

Eu2O3 500

Gd2O3 30

Tb2O3 1 500

Dy2O3 750

Ho2O3 65

Er2O3 40

Lu2O3 320

Y2O3 20Exchange Rate(CAD $/US $) 1.00

Discount Rate (%) 8.0

Ce0.02

La0.02

Nd0.16

Pr0.05

Sm0.00

Eu0.03

Gd0.01

Tb0.14

Dy0.44

Ho0.01

Er0.02 Lu

0.02Y

0.07

Revenue

Ce0.291

La0.148

Nd0.132

Pr0.038

Sm0.030

Eu0.004

Gd0.030

Tb0.006

Dy0.036

Ho0.008

Er0.025

Tm0.004

Yb0.023

Lu0.003

Y0.223

Production

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Base Case(million CAD)

Total At-mine Revenue 2,822.1Pre-production Capital Expenditures

315.8

Sustaining Capital Expenditures 38.3

Initial Working Capital Requirement

9.9

Mine Reclamation Costs 7.5

Total Operating Cost 1,142.5

Total Before-tax Cash Flow 1,679.6

Before-tax NPV @ 8% 606

Before-tax NPV @ 5% 811

Before-tax NPV @ 10% 500

Before-tax IRR (%) 36.9

Before-tax Payback Period (years) 2.4

5 Critical Elements (DOE)

Financial Analysis

Management and Technical TeamBoard of Directors 6 members

Officers

President and CEO Andre Gauthier (2003)

VP Exploration Aline Leclerc (2003)

VP Project development and construction Bertho Caron (2012)

Director of metallurgy Paul Blatter (2012)

Director of environment Hiring in progress

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Kipawa Deposit – Main Project Tasks Schedule

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2011 2012 2013 2014 2015 2016

PEA 43-101

Feasibility Study

Environment & Permitting

EPCM & Construction

Mining Pre-Prod. And Tailing Facilities Const.

A Strategic Partner: Toyota Tsusho Corp.

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Source: TTC-Annual Report 2011

MoU with Toyota Tsusho Corp. (December 7, 2011)

• Signed a MoU with Toyota Tsusho Corp. (“TTC”), a trading company of Toyota Motor Group, in order to secure a HREE supply for the production and marketing of hybrid and electric vehicles

– Mutual collaboration to accelerate the development of the Kipawa Deposit

– Technical assistance will be provided in association with TTC’s chain of suppliers

• MoU is divided into three stages with a final decision at the end of the first two stages

• Expected definitive joint venture between TTC and Matamec (TTC: 49%/ Matamec: 51%) which covers 1,000 hectares on and around the Kipawa Deposit.

Stage 1) Due diligence period which may extend to the end of March 2012• Evaluation of PEA/ preparing joint venture and off-take agreements

Stage 2) If TTC decides to pursue further, TTC will reimburse Matamec $1.5 million for its historical metallurgical expenditures• Negotiate/receive internal approval for the joint venture, off-take agreement and other agreements

Stage 3) A definitive joint venture agreement would then be established for the Kipawa Deposit between TTC (49%) and Matamec (51%) with an off-take agreement• Contribution from TTC based on up to 49% of Matamec’s market capitalization for the 90-day period

ending on November 30, 2011 (~CAD$17.23 million)• Off-take agreement for 100% of the mixed rare earths concentrate to be sold at a price equal to 70% of

the fair market value of the processed form of such elements

Source: Capital IQ.

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MOU - Matamec Gets:Mutual collaboration to accelerate the development of the

Kipawa Deposit• Feasibility study paid for• Access to TTC balance sheet (financing arranged for capex)• Technical expertise from TTC supply chain (huge intangible

value in terms of cost and time)• Accelerated development program (enables “first to market”

with HREE)• A buyer for 100% of the production• A mine not a story!

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Zeus (HREE-Y-Zr) Property Upside PotentialTTC may negotiate in good faith to participate in the exploration and development of all other REE prospects found on the Zeus Property

Showing potential outside of Kipawa• Surprise REE-Nb-Ta (16 samples)

– Average of 3.2% TREO at 27% HREO+Y2O3

• Certitude REE-Y-Nb-Ta (13 samples)– 5.2% TREO at 36% HREO+Y2O3

Spring 2012 Follow-up ground exploration to define potential drill targets in the area Ground traverses, mechanical trenching, line cutting, ground geophysics and geochemical surveys

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REE Deposit Comparables

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

HR

EO

/TR

EO

%

Mar

ket C

apita

lizat

ion

(US

$ M

illio

n)

Source: Capital IQ, Technology Metals Research LLC and company filings.1 Byron Capital Markets Research Department.* The economic assumption for Y2O3 is based on the cash flow model used in the PEA.

2016E 2017E 2018E 2019E 2020E$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Price Projections for Key REOs

HREE (Eu, Tb, Dy, Y*)

LREE (La, Ce, Pr, Nd)

First year of expected

production by Matamec

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HREE Company ComparablesDeposit

TypeCompany (Project)

Mine Type*

TREOIn-situGrade(%)

HREO/TREO(%)

OPEX/kg TREO($)

Required CAPEX ($ MM)

Pre-Tax NPV ($ MM)

IRR (%)

Full CAPEX Financing Partner

LREE

Frontier Rare Earth (Zankopsdrift)

OP 3.2% 7.8% $13.1 910 $4,340 at 11% (PEA)

57.6% KORES

Great Western Minerals (Steenkampskraal)

UG 17% 7.8% N/A N/A N/A N/A

Rare Element Resources (Bear Lodge)

OP 3.75% 3.3% $4.6 446 $1,300at 10% (PFS)

44.9%

Avalon Rare Metals (Nechalacho)

UG 1.35% 15.5% $5.5 1,200 $1,770 at 10% (PFS)

39.0%

HREE

Matamec Explorations (Kipawa)

OP 0.42% 36.9% $16.9 315 $606 at 8% (PEA)

36.9% Toyota

Quest Rare Minerals (Strange Lake)

OP 1.3% 43.2% $16.0 560 $1,826 at 10% (PEA)

36.4%

Ucore Rare Metals (Bokan Mountain)

UG 0.75% 39% N/A N/A N/A N/A

Source: Technology Metals Research LLC and company filings.* OP = Open-pit; UG = Underground

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1010 Sherbrooke West, Suite 200Montreal, QuebecCanada H3A 2R7

Tel (514) 844 5252Fax (514) 844 0550

Email info@matamec.comWebsite www.matamec.com

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