Phoenix Matachewan Mines Inc.: 14 Drill Sites to be Permitted, 56% Increase in Claims: Bottle Creek Gold Project, Nevada.

OTTAWA -- Phoenix Matachewan Mines Inc. ("PMM") (TSX VENTURE:PMM) today announced its application for a permit to construct drill sites and necessary access roads has been filed with the Bureau of Land Management in Nevada. Fourteen drill sites are being permitted on three gold-silver targets totalling 6 sq km in area.The three targets, designated Bluebird, Canyon Dome and South Halberg, are also closely associated spatially with past producing mercury mines and hydrothermal breccias that mark the probable centre of an epithermal mineralizing system.All will be tested with diamond drill holes in the first quarter of 2006.

PMM has expanded its claim coverage on the Bottle Creek epithermal gold-silver project in northwestern Nevada by 56% with the addition of 337 new claims for an additional 2728 ha.The project now comprises 937 claims totalling 7,584 ha, (29.3 sq mi).This follows receipt and interpretation of extremely prospective rock geochemistry obtained from the project.. PMM has optioned the Bottle Creek Property from Golden Gryphon Exploration Inc. ("GGE") a private, British Columbia registered, company which is the operator of the project.

Since September 2005, a reconnaissance gravity survey, a reconnaissance sage brush biogeochemical survey and a soil survey have been completed over portions of the Bottle Creek district with highly encouraging results. The sage survey detected a number of distinctive multi-element anomalies in the sediments north and east of the main district.Gold, arsenic, mercury, antimony, molybdenum, barium, selenium, uranium and tungsten anomalies were detected.A more extensive mercury vapour survey was conducted earlier in the same region, and where lines from the test sage brush survey coincide, there is good correlation in mercury values between the two surveys. The sage survey demonstrates that some of these mercury anomalies have robust multi-element signatures suggesting the presence of epithermal, precious metal, mineralization at depth.

A soil sample survey was completed over one of the key district targets, the South Halberg target, with excellent results. The survey detected a strong, coherent arsenic, antimony, mercury, thallium and tungsten anomaly approximately 600 m by 1,200 m, and it may be open to the north and south. Maximum values in soils (in ppm) within this anomaly are: Arsenic: 297, Mercury: 4.37, Antimony: 222, Thallium: 2.5, Tungsten: 15.7. Extensions of this survey are planned. Similar surveys are also planned for other sectors of the property.

The gravity survey utilized E-W lines spaced at 2 km intervals with stations spaced every 100 to 200 m along the lines. Although a reconnaissance survey, it demonstrated two key points: the eastern edge of relatively shallow depth-to-bedrock beneath sediments is at least 3 km east of the main district, and there is a remarkable correlation between gravity anomalies and anomalous metal geochemistry in the sage survey. The collective results of both the gravity and the sage geochemistry indicate the presence of multiple targets beneath the sediment cover. Unlike the Sleeper Deposit side of Desert Valley, the sediment cover on the Bottle Creek side of Desert Valley is thin. Additional detailed gravity and sage surveys are planned to define these anomalies.

The Sleeper Deposit, located 21km east of the Bottle Creek district, exhibits similar host stratigraphy, displays similar geochemical anomalies, structural controls, vein, breccia and stockwork mineralisation as encountered at Bottle Creek.In all 1.6M oz of gold was produced from Sleeper with bonanza veins grading up to 160 oz/ton gold as well as stockwork ore generally grading less than 0.1 oz/ton gold.

PMM also intends to raise $600,000 through the issue of 3,500,000 flow through units, at $0.10 per unit, each unit comprised of one flow through common share and one flow through warrant, each warrant exercisable at $0.20 to 1 January 2007; and 2,500,000 units at $0.10, each unit comprised of one common share and one common share purchase warrant, exercisable at $0.15 to 1 January 2007.The issue is expected to close on or about 30 December 2005, and proceeds are to be used for work on Steel River and Bottle Creek, as well as for working capital.

Paul L. Jones, P.Geo. is one of PMM's Qualified Persons under National Instrument 43-101 with regard to the Bottle Creek Project.

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Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM)