Phoenix Matachewan Mines Inc./Barville Zn-Ag-17 Anomalies Over 26.5 Km: A New Sturgeon Lake?

OTTAWA, ONTARIO, Jan 07 (MARKET WIRE) --
Phoenix Matachewan Mines Inc. (TSX VENTURE: PMM) ("Phoenix" or "PMM")
has completed its analysis of the new VTEM survey data for its Barville
project, after further processing of the data by Abitibi Geophysics Ltd.
in Val D'Or, Quebec.

Existing lines will be rehabilitated and extended in January, with ground
geophysics and drilling to follow in February and March. The entire
strike length of the anomalous zones is 26.5km (compared with only 16km
at Sturgeon Lake), which are covered by Phoenix' 124 claims covering
5,078.4 ha in Barraute and Landrienne Townships.

The Barville property is remarkably similar geologically to the Sturgeon
Lake camp in northwestern Ontario, which produced over 20mt of ore
containing 8% zinc and 134g/t silver from five deposits. Phoenix has
completed its compilation and analysis of the historic data as well as
new airborne geophysical survey, and is developing the next phase of its
program.

The similarities of the Barvue property to the Sturgeon Lake camp include
evenly spaced coincident airborne and ground geophysical anomalies.
Seventeen anomalies have been identified, spaced 2-3 km apart, each with
extensive footwall alteration, including sodium depletion, Mn-rich
carbonate, chloritoid and sericite alteration. Regular deposit spacing is
a feature of many productive VMS districts, such as Matagami Lake, P.Q
and Snow Lake, Manitoba.

At Phoenix' Barville property, three mineralized horizons are probably
thrust-fault repetitions, similar to Sturgeon Lake where two horizons are
related by thrust faulting. Historic diamond drilling generally missed
these anomalies, but a few holes penetrated the lateral extensions of
them, and these contained numerous intersections of 0.6 to 6% Zn and up
to 160g/t Ag. One set of these includes the lateral extension of the
Abcourt orebody.

Phoenix' claims surround the Abcourt-Barvue Mine of Abcourt Mines Inc.,
which announced in February 2007 that it has initiated the construction
of an 1,800-tonne-per-day mine/mill complex, based on a indicated and
measured resource of 6.8 million tonnes of ore containing 57.76 g/t
silver and 3.11% zinc.

Dr. James M. Franklin, FRSC, P. Geo is the qualified person for Phoenix
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
1-888-834-7708
robin@dowgroup.ca

BAY STREET CONNECT:
Gus Garisto
1-416-607-6023
gus@baystreetconnect.com

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