Phoenix Announces Change in Directors and Proposes a 1 for 10 Share Consolidation and Name Change to "Galahad Metals Inc."

OTTAWA, ONTARIO, Oct 03, 2008 (MARKET WIRE via COMTEX) -- Phoenix Matachewan Mines Inc. ("Phoenix") (PMM) announced today that, subject to the approval of shareholders and the TSX-Venture Exchange, Phoenix will ask its shareholders to approve a consolidation of its common shares on a one new share for ten old shares basis, to be effected by the board of directors at its discretion and to change its name to Galahad Metals Inc. A new stock symbol is pending.

Management thinks that the extraordinary changes in the market demand a quick and determined response to put Phoenix on a much stronger basis going forward and before the New Year brings a potential crush of consolidations in the industry.

Phoenix still has strong gold projects in Montrose, ON and Bottle Creek, NV, as well as an exciting zinc play developing in Barville, QC near Val d'Or. Phoenix expects to conduct additional drilling and other major exploration in 2009.

Phoenix currently has 106,126,376 common shares outstanding, with 144,526,374 outstanding fully diluted. Following the share consolidation, Phoenix would have 10,612,637 common shares outstanding, 14,452,637 fully diluted. The Special Meeting of Shareholders is scheduled for December 3, 2008.

Dr. James Franklin has resigned as a director of Phoenix to concentrate on his consulting practice but will remain an active advisor on Phoenix's exploration projects.

At a Board Meeting held October 2, 2008, Mr. Robert Schellenberg was appointed to the Board of Directors. Robert Schellenberg is a CPA and attorney practicing as a CPA in Grand Rapids Michigan. He is an owner of the CPA firm Schellenberg & Evers PC. The firm specializes in taxation, litigation support, resource consulting and film production audits for films produced in Michigan. He is also on the board of directors of Cabo Drilling (CBE) and Patrician Diamonds (PXC). He is a graduate of Hope College and Valparaiso University Law School.