This paper discusses the preparation of samarium-cobalt (SmCo5) alloy powders by reduction-diffusion process. These powders were blended with equal weight percentages of soft metal/alloy powders, such as indium, tin and solder alloy (Pb-17Sn), to prepare bonded magnets. Important magnetic properties such as remanence, coercivity and energy product of these magnets were measured. Effect of matrix metal/alloy on the magnetic properties of processed magnets is outlined.