MCM.A Matachewan Consolidated Mines Limited

Matachewan Consolidated Mines, Limited ("MCM")(TSX VENTURE:MCM.A) is pleased to
announce the signing of a binding Letter of Intent whereby Batavia can earn up
to a 70% interest in eight mining claims owned 100% by MCM located in Hislop and
Guibord townships, Ontario. The parties agreed to enter into a definitive
agreement based on standard industry terms as soon as practicable, including a
joint venture post 70% earn in by Batavia. 


The property is 5 kilometers southeast of the producing Black Fox Mine, 2
kilometers northeast of the producing Hislop mine, and 4 kilometers due north of
the former producing Ross mine. Gold mineralization was delineated on the
property by Noranda during the 1980's and Royal Oak Mines Inc. initiated
production from a small open pit mine in the early 1990's, shipping
approximately 100,000 tons grading 0.1 oz/ton for milling (Source: Resident
Geologist) when the gold price averaged $366 per oz. 


Batavia and MCM plan to explore and establish gold in the mineralized zones
along strike and to depth from the previous mining operation. 


Key Terms 

The key terms for the Batavia 70% earn in are:



--  50% over three years after $60,000 cash payments, $450,000 in
    exploration expenditures, and 500,000 Batavia shares; 
--  10% for completing a definitive feasibility study or $1 million in
    additional exploration expenditures over 2 years; and  
--  10% for obtaining mine financing or $2 million in additional exploration
    expenditures over 3 years. 



MCM retains, in addition to its 30% interest, the following:



--  2% NSR, 1% of which can be repurchased for $1 million; and 
--  $25,000 annual advance royalty post Batavia's 50% earn. 



Joint Venture Operating Profits 

A joint venture will be established once Batavia has earned a 70% interest. The
joint venture operating profits will be divided based on participation in mine
financing. Should Batavia provide 100% of mine financing, Batavia will receive
90% of joint venture operating profits until recovery of 200% of expenditures,
and thereafter operating profits are divided 70/30 in favour of Batavia. 


Should MCM exercise a 20% mine financing option, the joint venture operating
profits will be divided 70/30 in favour of Batavia from the establishment of the
joint venture. 


Batavia President John Kontak said: "Batavia is excited to have the opportunity
to earn in to the world class Timmins gold mining camp. MCM and Richard
McCloskey provide a great partner and we look forward to getting busy in the
field." 


MCM President Richard McCloskey said: "We are pleased to have this property
reactivated and look forward to a long and successful relationship with
Batavia." 


Ken Guy is the Qualified Person for the purposes of NI 43 101. 

Matachewan is a Canadian publicly-traded Junior resource company that has a
significant royalty interest in a portion of the Northgate Minerals Corporation
developing Yonge-Davidson gold mine located in the Matachewan, Ontario area, an
indirect royalty interest in developing Saskatchewan potash operations, and oil
and gas investments in Western Canada. Matachewan's common shares are traded on
the TSX Venture Exchange under the trading symbol MCM.A


Certain statements contained in this press release constitute "forward looking
statements". These statements are based on current expectations of management,
however are subject to known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from the forward-looking
statements in this news release. Readers are cautioned not to place undue
reliance on these statements. The Company does not undertake any obligation to
revise or update any forward-looking statements as a result of new information,
future events or otherwise after the date hereof, except as required by
securities laws.

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