Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

October 16, 2009 12:51 ET

Mega Uranium Clarifies Certain Mineral Resource Disclosure

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2009) -

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

Mega Uranium Ltd. (TSX:MGA) ("Mega") is issuing this news release to clarify certain of its mineral resource disclosure.

Mega retracts certain of its mineral resource disclosure on its mineral properties and restates it in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). In certain cases, contrary to NI 43-101, Mega aggregated Inferred Resources and Indicated Resources or omitted disclosure regarding the grade or quality and quantity for its mineral resources where it disclosed a quantity of contained mineral. In addition, certain historical resource estimates were not properly disclosed in accordance with NI 43-101 requirements. This retraction, however, does not impact on the tonnage and grade of the resources reported by Mega in such news releases.

- In its press release dated July 8, 2009, titled "Resource Increase and Upgrade at Lake Maitland, Western Australia," Mega incorrectly disclosed "Global resource at a 100ppm U3O8 cut-off increased to 25.2 Mlbs U3O8." The correct disclosure as required by NI 43-101 is "Global resource at a 100ppm U3O8 cut-off increased to an Indicated Resource of 27.6 million tonnes @ 378 ppm U3O8 (23.0 Mlbs U3O8) and an Inferred Resource of 3.6 million tonnes @ 274 ppm U3O8 (2.2 Mlbs U3O8)."

- In its press release dated June 18, 2009, titled "Mega Uranium, Japan Australia Uranium Resources Development Co. Ltd. and Itochu Corporation Formalize Agreements for the Sale of 35% of the Lake Maitland Resource for US$49 Million," Mega incorrectly disclosed "Lake Maitland national instrument 43-101 compliant Inferred Resource of 23.7 million pounds U3O8." The correct disclosure as required by NI 43-101 is "Lake Maitland national instrument 43-101 compliant Inferred Resource of 32.7 million tonnes grading 330ppm U3O8 (23.7 Mlbs U3O8)."

- In its press release dated May 13, 2009, titled "Mega Uranium Ltd. Releases Unaudited Results for the Three and Six Months Ended March 31, 2009" Mega incorrectly disclosed "...significant milestone in the development of its 23.7 Mlbs U3O8 Lake Maitland Resource." The correct disclosure as required by NI 43-101 is "...significant milestone in the development of its Lake Maitland NI 43-101 compliant Inferred Resource of 32.7 million tonnes grading 330ppm U3O8 (23.7 Mlbs U3O8)."

- In its press release dated February 27, 2009, titled "Mega Uranium To Sell 35% of Lake Maitland Resource for US$49 Million to Japan Australia Uranium Resources Development Co. Ltd. And ITOCHU Corporation," Mega incorrectly disclosed "...contains a national instrument 43-101 compliant Inferred Resource of 23.7 million pounds U3O8." The correct disclosure as required by NI 43-101 is "...contains a national instrument 43-101 compliant Inferred Resource of 32.7 million tonnes grading 330ppm U3O8 (23.7 Mlbs U3O8)."

- In its press release dated February 5, 2009, titled "Update On Exploration Activities In Chubut Province, Argentina":

-- Mega incorrectly disclosed "Trenching to date delineates a potential of 4 - 5 Mlbs U3O8 in surficial conglomerates in the Laguna Salada." The correct disclosure as required by NI 43-101 is "Trenching to date delineates a potential mineral deposit of 11 - 12.5 million tonnes grading 160 - 180 ppm U3O8 (4 - 5 Mlbs U3O8) in surficial conglomerates in the Laguna Salada."

-- Mega incorrectly disclosed "Based on these results, Mega estimates that the resource potential of this 6.8 km2 area is 2.5 - 3 Mlbs U3O8." The correct disclosure as required by NI 43-101 is "Based on these results, Mega estimates that the potential mineral deposit in this 6.8 km2 area is 7.0 - 7.5 million tonnes grading 160 - 180 ppm U3O8 (2.5 - 3 Mlbs U3O8)."

-- Mega incorrectly disclosed "Based on these results, Mega estimates that the 6.1 km2 area contains potential for delineating a resource of some 1.5 - 2 Mlbs U3O8." The correct disclosure as required by NI 43-101 is "Based on these results, Mega estimates that the 6.1 km2 area contains a potential mineral deposit of some 4.2 - 5.0 million tonnes grading 160 - 180 ppm U3O8 (1.5 - 2 Mlbs U3O8)."

-- Mega incorrectly disclosed "Mega estimates that the 2km2 area has potential for some 3 - 4 Mlbs U3O8." The correct disclosure as required by NI 43-101 is "Mega estimates that the 2km2 area has a potential for a mineral deposit of some 8.5 - 10.0 million tonnes grading 160 - 180 ppm U3O8 (3 - 4Mlbs U3O8)."

- In its press release dated January 15, 2009, titled "Update On Georgetown Project, Queensland, Australia":

-- Mega incorrectly disclosed "...Mega's Maureen uranium resource (NI 43-101 compliant Indicated Resource of 5.95 Mlbs U3O8 plus an Inferred Resource of 0.38 Mlbs U3O8)." The correct disclosure as required by NI 43-101 is "...Mega's Maureen uranium resource (NI 43-101 compliant Indicated Resource of 3.1 million tonnes @ 0.09% U3O8 (5.95 Mlbs U3O8) and an Inferred Resource of 0.15 million tonnes @ 0.11% U3O8 (0.38 Mlbs U3O8))."

-- Mega incorrectly disclosed "The historical resource at Central 50, as reported by Esso Exploration and Production Australia Inc. in 1981, comprises 1.3 Mlbs U3O8 at a grade of 0.16% U3O8, based on a 0.045% U3O8 cut-off." The correct disclosure as required by NI 43-101 is "The historical resource at Central 50, as reported by Esso Exploration and Production Australia Inc. in 1981, comprises 0.37 million tonnes at a grade of 0.16% U3O8 (1.3 Mlbs U3O8), based on a 0.045% U3O8 cut-off."

-- Mega incorrectly disclosed "The Central 50 and Two Gee uranium resource estimates reported, respectively, by Esso in 1981 and Minatome in 1983, are historical and not NI 43-101 compliant. As the resource estimates were reported prior to the introduction of the JORC regulations in Australia, they must therefore be regarded as unreliable at this time according to the NI 43-101 guidelines." The correct disclosure as required by NI 43-101 is "All historical resource estimates referred to in this press release were prepared prior to the implementation of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mega has not conducted any work at this time to verify these historical resource estimates, we are not aware of any more recent resource estimates or data for the properties which conform to the standards of NI 43-101 and we are not treating the historical estimates as current mineral resources. They should not be relied upon. The Central 50 and Two Gee uranium resource estimates reported, were, however, competently conducted respectively, by Esso in 1981 and Minatome in 1983, in accordance with the standards of the day and we regard them as a reasonable reflection of the magnitude and grade of the mineralization. The historical resource estimates are categorized as "indicated" and "inferred", which are comparable to the corresponding resource categories permitted under NI 43-101."

- In its press release dated December 23, 2008, titled "Mega Uranium Ltd. Releases Audited Results For The Year Ended September 30, 2008":

-- Mega incorrectly disclosed "In Mega's Lake Maitland project in Western Australia (inferred resource 23.7 million pounds U3O8)." The correct disclosure as required by NI 43-101 is "In Mega's Lake Maitland project in Western Australia (Inferred Resource of 32.7 million tonnes grading 330ppm U3O8 (23.7 Mlbs U3O8))."

-- Mega incorrectly disclosed "The deposit contains an indicated resource of 7.9 Mlbs U3O8 and an inferred resource of 2.8Mlbs U3O8." The correct disclosure as required by NI 43-101 is "The deposit contains an Indicated Resource of 1.33 million tonnes @ 0.27% U3O8 (7.9 Mlbs U3O8) and an Inferred Resource of 0.6 million tonnes @ 0.21% U3O8 (2.8 Mlbs U3O8)."

-- Mega incorrectly disclosed "...drilling completed to date delineated potential for a 7 - 11 Mlbs U3O8 resource within unconsolidated surficial pebbly conglomerates within an extensive Quaternary terrace." The correct disclosure as required by NI 43-101 is "...drilling completed to date delineated potential for a 20.0 - 27.5 million tonne deposit grading 160 - 180ppm U3O8 (7 - 11 Mlbs U3O8) within unconsolidated surficial pebbly conglomerates within an extensive Quaternary terrace."

- In its press release dated June 26, 2008, titled "Extensive Shallow Uranium Mineralization Delineated in Argentina," Mega incorrectly disclosed "Based on the results of the trenches summarized above, Mega estimates that the 15 km2 area of the Guanaco prospect explored to date contains potential for delineating a resource of the order of 5 - 8 million pounds U3O8 with an average grade of all samples of the order of 100 - 140 ppm U3O8. The mineralisation is open to the southeast where a 15 km2 area of the Quaternary terrace remains to be investigated by trenches. In the Lago Seco prospect, it is estimated that the 4.6 km2 area explored to date contains potential for delineating a resource of the order of 2 - 3 million pounds U3O8 with an average grade of all samples of the order of 120 - 160 ppm U3O8, and that additional potential exists in a 6 km2 portion of the Quaternary terrace to the south." The correct disclosure as required by NI 43-101 is "Based on the results of the trenches summarized above, Mega estimates that the 15 km2 area of the Guanaco prospect explored to date contains potential for delineating a deposit of the order of 22.5 - 26.0 million tonnes grading 100 - 140 ppm U3O8 (5 - 8 million pounds U3O8). The mineralisation is open to the southeast where a 15 km2 area of the Quaternary terrace remains to be investigated by trenches. In the Lago Seco prospect, it is estimated that the 4.6 km2 area explored to date contains potential for delineating a deposit of the order of 7.5 - 8.5 million tonnes grading 120 - 160 ppm U3O8 (2 - 3 million pounds U3O8), and that additional potential exists in a 6 km2 portion of the Quaternary terrace to the south."

In addition to the foregoing, a scoping study relating to Mega's Lake Maitland Project and information derived from such scoping study including, without limitation, the disclosure regarding planned annual output for Mega's Lake Maitland Project, included in:

- Mega's press release dated July 8, 2009 and related material change report dated July 14, 2009, and

- Mega's press releases dated October 21, 2008, February 13, 2009, and June 18, 2009, was not NI 43-101 compliant and, accordingly, is retracted by Mega and should not be relied upon. Refer to the technical report entitled "Lake Maitland - NI 43-101 Technical Report" dated September 8, 2009, accessible at www.sedar.com further information regarding Mega's Lake Maitland Project.

Mega has also amended certain mineral resource information, including global and Australian property resource estimate summaries, included on its website to comply with the requirements of NI 43-101.

The foregoing non-compliant disclosure was disseminated by Mega in spite of previous advice from the Ontario Securities Commission regarding compliance with NI 43-101. Mega will henceforth comply fully with the disclosure requirements of NI 43-101.

Stewart Taylor, Mega's President and a Qualified Person under NI 43-101, is responsible for this news release and has verified the contents disclosed.

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 the potential mineralization and resources of our projects.

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 risks and uncertainties relating to the geology, grade and continuity of mineral deposits, risks relating to possible variations in resources and 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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