Mega Silver Inc.

Mega Silver Inc.

November 28, 2008 19:55 ET

Mega Silver Inc.: Eagle Silver Project Update, Keno Hill, Yukon

Silverstone Notified of Promontorio and Montoros Option Terminations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - Mega Silver Inc. ("Mega Silver") (TSX VENTURE:MSR) is pleased to present new historical data it has received on its Eagle Project, located in the Keno Hill area roughly 38 kilometres northeast of Mayo and 350 kilometres due north of the capital of Whitehorse, Yukon Territory.

The Eagle Project is comprised of the SpiderMan property, the Fisher property and the recently acquired Eagle property in the historic Keno Hill silver district that has produced over 214 million ounces of silver. Mega Silver's total land position now covers 1,595.8 hectares in two adjacent claim blocks of 74 claims and 10 claims each on the southeast slope of Galena Hill.

The Eagle project includes historic surface trenches that expose the silver-lead-zinc mineralized Eagle Vein. The Eagle Vein is the only known significant, mineralized, transverse vein-fault hosted in Keno Hill Quartzite on Galena Hill that has not been developed and explored by underground drifting, in spite of repeated past recommendations to do so. The Eagle Vein is located roughly 1.5 kilometres south of and parallel to the vein structures of the Hector-Calumet Mine, which produced almost half of all metal produced in the Keno Hill camp from 1935 to 1972. The Eagle vein varies from 0.6 to 4.9 metres wide with mineralized lenses of silver-rich galena, sphalerite and tetrahedrite in a siderite, pyrite and quartz gangue.

First discovered in the early 1920s, the Eagle Vein has been the focus of three periods of detailed exploration work. In the 1950-51 the vein was exposed by bulldozer trenching. In 1963-64, Jersey Consolidated Mines Ltd. ("Jersey Cons.") exposed over 120 metres of the vein. An 11.6 metre section of the vein, based on 9 chip samples at 1 to 2 metre intervals, reportedly averaged 442.3 g/t silver, 6.5% lead and 3.9% zinc across an average width of 0.46 metres (includes a 1.2 metre section that averages 1,570.3 g/t silver across 0.55 metres; cited by: Archer, 1979). Preliminary geochemical results from select grab samples collected in 2008 by Mega Silver included: 990.3 g/t, 845.6 g/t and 600.6 g/t silver (samples EAG-DT-R001, - 002 & -003, respectively).

Historic weekly drill reports (Jersey Cons.; 1964), reports (Archer; 1973, 1978, 1979) and Yukon Government files (MinFile 105M 021) report that a total of 35 holes totalling 3,075.5 metres have been drilled along 300 metres of vein strike in two programs (1964 and 1978/79). Of the 29 holes drilled in 1964, 12 were drilled to less than 25 metres depth immediately below the trench exposure and an additional 8 holes failed to reach target depth due to ground conditions. Poor recoveries are reported to have been common in the vein, notably along the hanging wall contact. Drilling intersected both the main vein and a more northerly striking splay vein in the hanging wall.

A partial summary of significant drill intercepts is reported in the following table.

EAGLE VEIN - HISTORIC REPORTED DRILLING (Jersey Cons., 1964; Acher, 1979)
Reported Reported
Oper- Hole Interval Reported Intercept Silver Lead Zinc
Year ator Number (m) Structure (m) g/t % %
1964 Jersey E64-13 41.4 - 43.5 Branch Vein 2.1(i) 1,885.7 12.8 4.2
Cons. --------------------------------------------------------------
Mines E64-15 76.3 - 77.0 Branch Vein ? 0.7 428.6 n/a n/a
Ltd. 81.0 - 81.2 0.2 510.9
E64-18 72.2 - 72.8 ? 0.6 385.7 4.6 2.8
E64-23 178.3 - 179.5 Main Vein 1.2(i) 7,624.9 1.2 1.5
182.0 - 182.7 0.7 682.3 11.6 2.6
1978 Teck E78-JB1 147.0 - 147.7 Branch Vein ? 0.7 281.8 0.2 n/a
Corpor- 176.5 - 177.7 Main Vein 1.2 146.1 0.6 n/a
ation --------------------------------------------------------------
E78-JB2 164.0 - 165.2 Main Vein 1.2 141.9 1.2 n/a
1979 E79-JB3 Main Vein 1.5 366.6 5.4 6.8
(i) Low recovery; E64-13 samples from analysis of recovered sludge. Sample
recovery from 1.2m E64-23 interval 0.15m.

The contiguous Spider, Man and Ag claims are located on Galena Hill immediately to the east and along trend of the Eagle Vein. A 1971 geochemical soil survey completed by United Keno Hill Mines Ltd. (UKHM) of the property outlined a 300 metre lead-silver anomaly extending along strike from trenches exposing the Eagle Vein. The anomaly has not been explained by trenching, nor has it been drill tested.

The Fisher claims cover historic hand dug shafts where M. Philpot of Bema Industries Limited reported in 1980 that a sample of galena-quartz vein material found in dumps assayed 22,311 g/t silver. The claim area has been the subject of various geochemical work programs in the late 1970s. Work completed by StrataGold in 2006 on the Fisher claims has outlined a moderate silver soil geochemical anomaly (values to 2.5 g/t Ag) extending a kilometre northeast from the historic shafts along a strong linear (McLeod fault?) towards and intersecting with the Eagle vein-fault structure.

The 2008 Mega Silver Work Program included the following:

- A 610 line-kilometre airborne magnetic gradiometer and VLF-EM survey was flown over the entire Eagle Project area. Preliminary interpretation of the magnetic survey has indicated the continuation of a number of possible structures in the area of the Eagle vein and McLeod linear.

- A detailed geochemical soil survey of the Spider, Man and Ag claims (249 samples), confirming the 1971 United Keno Hill Mines Ltd. The survey produced a strong linear, coincident, multi-element (Ag-Pb-Zn-As-Sb) anomaly extending more than 350 metres east across the Man claim along the trend of the Eagle vein. The core of the anomaly is highlighted by 14 samples ranging between 403 and 4,036 ppm lead, and 2.1 to 3.5 ppm silver.

- Four trenches were attempted in 2008 to test the Fisher anomaly, but failed to penetrate through thick permafrost frozen overburden.

- A total of 253 soil samples were collected on the Fisher grid area, increasing sample density and confirming the anomaly in the grid area, and expanding to the grid to the west over the area of the historic workings.

- Geological mapping was limited, largely due to thick overburden on the south slope of Galena Hill.

The 2009 work program will focus on the Eagle vein structure.

- Mega Silver intends to core drill 3,500 metres on the Eagle vein, Man geochemical anomaly area and structures indicated by the geophysical survey.

- Mega Silver is also investigating a follow-up the Fisher geochemical anomaly with a rotary air blast (RAB) surficial drilling program in preparation of drilling in 2009.

Mega silver has $2.2 million of flow through capital in its treasury to be spent before December 31, 2009. Mega Silver is currently seeking additional opportunities in Canada for the 2009 field season.

Notice of Promontorio and Montoros Project Terminations Issued to Silverstone

Mega Silver announces that notices of termination of the Montoros and Promontorio option agreements have been sent to Silverstone Resources Ltd.'s Mexican subsidiary, Silverstone, S.A. de C.V.

Mr. David Tupper, P.Geo., Vice-President, Exploration of Mega Silver, a "qualified person" under National Instrument 43-101, is responsible for the technical aspects of this news release.

About Mega Silver

Mega Silver Inc. is a mineral exploration company established in January 2008 to explore and develop high value silver opportunities globally. Mega Silver has reduced its project obligations in order to focus its efforts exploring the prospective Eagle Silver Project in the Yukon. Mega Silver is well funded to carry out exploration and acquisition activities with a total of $11.7 million in its treasury. Full information on Mega Silver can be found at and on the Company's website,

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; ability to negotiate and enter into definitive agreements; potential benefits of the acquisitions; the costs and timing associated with integrating the acquisitions; production levels, timing and costs; potential contractual arrangements and the delivery of equipment; receipt of working capital; anticipated revenue; mineral reserve and resource estimates; and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, third party risks, acquisition risks, risks inherent in the mining industry, financing risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

To view the map accompanying this press release please click on the following link:

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.

Contact Information