Mega Uranium Ltd.

Mega Uranium Ltd.

January 24, 2007 09:35 ET

Mega Acquires Oasis Advanced Uranium Project Midway Between Its Ben Lomond and Georgetown Projects in Queensland, Australia

TORONTO, ONTARIO--(CCNMatthews - Jan. 24, 2007) - Mega Uranium Ltd. ("Mega") (TSX:MGA) is pleased to announce that its wholly owned subsidiary, Mega Georgetown Pty. Ltd. ("Mega Georgetown"), has entered into a binding Letter Agreement with the publicly listed Australian company Glengarry Resources Ltd. ("Glengarry") to acquire its uranium interests in 1921 km(2) of ground located in Queensland, Australia, approximately midway between Mega's Ben Lomond and Georgetown Projects. Under the Agreement, the uranium interests can be acquired for a total consideration of 750,000 Mega shares, which will be subject to a four month escrow period. In addition, Glengarry will receive a 1% net smelter royalty ("NSR") on any uranium production from the ground that is subject to the Agreement. The deal is subject to Mega's completion of satisfactory due diligence on Glengarry's property interests and to TSX approval.

Within the ground package, the principal area of uranium mineralisation delineated to date is the Oasis prospect, a north-south trending shear zone defined by a highly fissile biotite-quartz schist unit within a Proterozoic syenogranite. In 1977 to 1979 the shear zone was drill tested by Esso Exploration and Production Australia Inc ("Esso"), on traverses 12.5-25 metres apart, in a programme comprising 32 diamond core holes and 14 percussion holes totaling 4755 metres. The drilling delineated a coherent, steeply dipping, tabular zone of disseminated uraninite mineralisation, up to 15 metres thick, and extending over a 300 metre strike length to a depth of 175 metres.

In 2005/2006, Glengarry established the validity of Esso's drill results with 4 angled (-60 degrees) diamond drill holes (total 461 metres), which made the following intersections.

Hole From(m) To(m) Width(m) %U3O8
05LYD001 54 64 10 0.12
05LYD002 34 41 7 0.17
06LYD003 92 97 5 0.15
06LYD004 170 172 2 0.15

The uraniferous shear zone in the Oasis prospect is open at depth and along strike to the south, where it can be traced over at least 5 kilometres, comprising a 1.5 kilometres length on Glengarry's ground and an additional 3.5 kilometres in adjacent ground to the south in which Glengarry has farm-in rights (see below). Although Esso reported no significant uranium results in trenches and shallow auger drilling of this southern strike extension, Mega regards its uranium potential as untested, as the shear zone in this area is largely obscured by shallow cover, and drill holes in the Oasis prospect made significant uranium intersections beneath locations with little or no surface indications of uranium mineralisation - for example, Esso hole OAD 4 intersected 7.4 metres @ 0.26% U3O8 beneath a trench which contained a maximum value of only 100 ppm U3O8.

Mega's proposed exploration programme, scheduled to commence in April after the summer rains, will focus on drill testing possible dip and immediate strike extensions of the Oasis prospect and the projection of the shear zone to the south.

Interests to be acquired by Mega under the Agreement comprise the following:

- Exploration Licence EPM 15049 (32 km(2)), covering the Oasis prospect, which will be transferred from Glengarry to Mega Georgetown.

- The uranium content in five other Exploration Licences held by Glengarry (EPMs 12510, 12512, 12513, 15050, 15051 - total 1662 km(2). In these properties Glengarry will retain title, will be responsible for meeting annual statutory obligations regarding rental payments and expenditure commitments, and will continue to conduct exploration programmes for minerals other than uranium.

- Glengarry's farm-in rights to Exploration Licence EPM 14987 (227 km(2)) held by the publicly listed Australian company Metallica Minerals Ltd. ("Metallica"). In this tenement Glengarry has an agreement to earn an 80% interest in the uranium content through total expenditure of $A1 million over a five year period commencing October 18 2005.

Stewart Taylor, Mega's President and Qualified Person under NI43-101, is responsible for this release and has verified the contents disclosed.

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Columbia, Bolivia and Canada. Further information on Mega can be found on the company's website at Mega Uranium's Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.

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