UGL Enterprises Ltd.
TSX VENTURE : UGS

UGL Enterprises Ltd.
Mega Uranium Ltd.
TSX VENTURE : MGA

Mega Uranium Ltd.

March 28, 2006 08:26 ET

2006 Mongolian Uranium Field Activities Commenced by UGL and partner Mega Uranium Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2006) - UGL Enterprises Ltd. (TSX VENTURE:UGS) announced today that, as part of its joint venture with Mega Uranium Ltd. (TSX VENTURE:MGA) (the "UGL-Mega Joint Venture"), the UGL-Mega Joint Venture has commenced its 2006 uranium field season. Field activities in Mongolia will be directed at examining the uranium potential of a number of priority target areas on 5 of the UGL-Mega Joint Venture's 14 Mongolian uranium properties. Detailed records of previous Russian exploration on the UGL-Mega Joint Venture's uranium properties were obtained from official sources in Irkutsk, Russia in the last quarter of 2005. This material was extensively studied by UGL's Russian, Mongolian and Canadian geologists, as well as by two Russian consultants (respectively Irkutsk and Vancouver based) who are highly experienced in uranium exploration and project development in Russia and Mongolia. Based on their review, five properties have been selected for detailed investigation in 2006: the Jargalan, Baganurat, Maikhan Tolgoi, Shorvog Gol/Adag Usni Khudag and Ganga properties. With the exception of Maikhan Tolgoi, these properties all contain radiometric anomalies, uranium showings and favorable geological settings within Cretaceous stratigraphy, with potential for flat lying stratabound sandstone-hosted uranium bodies at shallow depths, generally less than 100 metres. On the Maikhan Tolgoi property the target is shallow structurally-controlled uranium within Cretaceous volcanic host rocks.

The 2006 field season will see specific identified target areas in the five priority properties studied and advanced through the use of ground-based radiometric surveys, Vertical Electrical Sounding (VES) surveys, Induced Polarization (IP) surveys, (AlphaCard - patented) radon surveys, and soil & rock sampling. The UGL-Mega Joint Venture has budgeted to drill test the most favourable anomalies and showings later this year.

All programs will be overseen by UGL's Exploration Manager, Mr. Glenn S. Griesbach. On-site field operations will be managed by Russian uranium expert, Grigory Kislyuchenko, who previously worked for 19 years with the Sosnovgeologia Uranium Company in Mongolia and Siberia.

UGL holds a 100% interest in 14 Uranium Properties, a 136.4 million tonne hard high-volatile bituminious coal resource and 3 gold & copper properties inside Mongolia. The uranium portfolio consists of 16 exploration licenses covering a total area of 2,325 sq. km2. Uranium license applications are currently being prepared for other exploration areas where Mr. Kislyuchenko, as a result of his research in Irkutsk archives, has identified additional uranium anomalies and mineralization.

Since July 12, 2005 Mega Uranium has had an option to earn up to a 60% interest in UGL's Mongolian uranium portfolio (including future acquisitions) by expending up to US $3.5 million. Mega Uranium brings considerable uranium expertise to UGL's exploration programs. During the current 2006 uranium field and drill programs it is anticipated that a total of US $1 million will be spent.

The Qualified Person responsible for summarizing the technical material presented in this news release is Mr. Glenn S. Griesbach, P. Geo. Mr. Griesbach has acted as UGL's Geological Manager in Mongolia for over three years and has 28 years of international geological experience including previous experience in uranium exploration.

UGL ENTERPRISES LTD.

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • UGL Enterprises Ltd.
    Paul McKenzie
    Director
    (604) 779-8550
    info@uglenterprises.com
    www.uglenterprises.com
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Nick Fuller
    European Investor Inquiries
    +44 (0) 20 7256 5204
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Samantha Fletcher
    European Investor Inquiries
    +44 (0) 20 7256 5204