Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

October 26, 2009 09:09 ET

Mega Uranium Announces Closing of $50 Million Public Offering

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Mega Uranium Ltd. (TSX:MGA) ("Mega" or the "Company") is pleased to announce the closing today of its previously announced public offering of units. An aggregate of 58,824,000 units were sold under the offering at a price of $0.85 per unit, for gross proceeds of $50,000,400 to the Company. Each unit is comprised of one common share and one-half of one common share purchase warrant of Mega. Each whole warrant entitles the holder to acquire one common share, at a price of $1.25, until October 26, 2014, subject to early expiry if, on any day after October 26, 2012, Mega provides notice within 5 days that the 20-day volume weighted average trading price of the common shares on the Toronto Stock Exchange has exceeded $2.50.

The offering was underwritten by a syndicate of underwriters led by RBC Capital Markets and UBS Securities Canada Inc., and including Macquarie Capital Markets Canada Ltd., Thomas Weisel Partners Canada Inc., Haywood Securities Inc., Salman Partners Inc. and Dundee Securities Corporation.

Mega intends to use the net proceeds of the offering for the completion of feasibility studies in respect of its Lake Maitland Project, and the development of the Project, and for working capital and general corporate purposes.

The securities described in this press release 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 unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Mega Uranium

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia and Cameroon. Further information on Mega can be found on the company's website at www.megauranium.com. Mega Uranium's Ben Lomond and Maureen uranium resources are subject to a Queensland State Government policy that presently prohibits the mining of uranium.

Cautionary Statement Regarding Forward-Looking Information

Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, information concerning our anticipated use of the proceeds of the offering.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: the possibility we have to allocate proceeds to other uses or reallocate proceeds differently among the anticipated uses due to changes in project parameters or other unforeseen circumstances associated generally with the unpredictability of exploration and development activities.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law. All forward-looking information contained in this release is expressly qualified by this cautionary note.

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