Mega Uranium Ltd.

Mega Uranium Ltd.

December 21, 2007 18:01 ET

Mega Uranium Ltd. Releases Audited Results for the Year Ended September 30, 2007

- Executed global growth strategy through completion of several acquisitions - Significantly expanded technical management team - Raised over $47 million through financings

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - Mega Uranium Ltd. ("Mega") (TSX:MGA) announces its audited results for the year ended September 30, 2007.

As at September 30, 2007, Mega had cash, cash equivalents and marketable securities totaling $114.0 million as compared to $41.3 million at the end of September 30, 2006, an increase of 176%. As at September 30, 2007, the Company had mineral properties and related expenditures of $466.9 million as compared to $56.8 million as at September 30, 2006. The increase is primarily due to Mega's acquisition of Redport Limited, Twenty Seven Capital Corp., Monster Copper Corporation and Nu Energy Uranium Corporation, as well as expenditures for mineral properties of $14 million.

Results for the year ended September 30, 2007 as compared to the year ended September 30, 2006:

- Revenue increased to $10,625,601 as compared to revenue of $964,032.

- Total expenses were $31,237,947 as compared to $12,400,686.

- Net loss in the year was $16,187,850 ($0.11 per common share) as compared to a net loss of $10,669,628 ($0.12 per common share).

"Fiscal 2007 was a year of significant growth for Mega Uranium on all fronts," stated Mr. Sheldon Inwentash, Chairman and CEO of Mega Uranium. "We made several key acquisitions and completed three successful financings, both all of which will support our acquisition and property development activities in 2008. Our diversified uranium property portfolio, management team and strong financial position are key factors for Mega which distinguishes us from other junior uranium companies." He continued, "Looking forward, we believe the fundamentals for the uranium market remain strong, driven by global growth and the renaissance of nuclear power as a major energy source. With our long-term growth strategy in place, we are positioning Mega to leverage future demand for uranium and generate maximum return for shareholders."

Financing Activity

In total the Company completed three financings raising $47.0 million for exploration and development of current and new projects, for future acquisitions and for general corporate purposes.

Significant Acquisition Activity

Continuing with its aggressive global growth strategy, Mega completed the acquisition of five uranium companies active in Australia, Canada and Cameroon. In Australia, Mega added to its resources and exploration properties with the acquisition of Redport Limited, whose principal assets include the Lake Maitland project which contains an NI 43-101 compliant inferred mineral resource of 23.7 million pounds U3O8. The acquisition of Redport also brought with it several exploration properties in Australia as well as the Redport technical team, including Peter McNally, an experienced uranium miner and developer. Peter assumed the role of Vice President, Project Development at Mega Uranium and has been instrumental in Mega's successful negotiations with Aboriginal groups in Western Australia.

The Company also significantly expanded its Canadian footprint with the acquisition of Twenty Seven Capital, which has prospective land holdings in the Yukon, and Monster Copper, which is actively exploring the Central Mineral Belt of Labrador. Dr. Michael Downes, former President and CEO of Monster Copper also joined Mega's team as Vice President, North America. Michael brings extensive experience in mineral exploration in both Canada and South America and is now focused on driving Mega's Canadian exploration and acquisition initiatives. Mega also doubled its land position in Labrador through the acquisition of Northern Lorena Resources Ltd., a private Nova Scotia-based company.

Mega made its first inroads into uranium exploration in Africa with the acquisition of Nu Energy Uranium Corporation. Nu Energy's principal assets are a 92% interest in the Kitongo and Lolodorf uranium properties located in the Republic of Cameroon, Africa. Dr. Brian Hambleton-Jones, who joined Mega through the Nu Energy acquisition, is now focused on running the Cameroon exploration program and further expanding Mega's presence in Africa.

Project Activity

Throughout the year, Mega provided numerous updates on its exploration projects.
Highlights included:

- Australia

-- Western Australia

--- Mega expanded its exploration activity in Western Australia through a farm-in agreement with Aura Energy to earn up to 70% interest in tenements in the Gunbarrel Basin. Airborne radiometric surveys have commenced.

--- The Company also announced it would be fast tracking its Lake Maitland project by assigning a dedicated team of experts to undertake a scoping study in order to evaluate the project economics and the key tasks involved in mine development.

--- Mega also began forging a unique long-term working relationship with the Martu people and announced that it had obtained Native Title Approval to conduct exploration on its Kintyre Rocks project.

-- Queensland

--- Mega commenced a pre-feasibility study on its Ben Lomond project, which contains an NI 43-101 compliant resource of 10.7 million pounds U3O8, comprising an indicated resource of 7.9 million pounds U3O8 at an average grade of 0.27% U3O8, and an inferred resource of 2.8 million pounds at a average grade of 0.21% U3O8.

--- Numerous untested uranium radiometric anomalies in favourable geological settings were identified at Mega's Georgetown project. In June, Mega announced that validation drilling of the historical Maureen uranium-molybdenum resource in Queensland had intersected 14 metres @ 1.61% U3O8 and 0.48% Mo. Other drilling at 2.4 km south-southwest of Maureen, intersected 20 metres @ 0.52% U3O8 and 0.30% Mo.

--- In March 2007, Mega acquired from Glengarry Resources Ltd. its uranium interests in 1921 km2 of ground adjoining the southeast portion of Mega's Georgetown Project.

-- South Australia

--- Mega received encouraging reconnaissance drilling results in the Cronje Dam Project.

- Canada

-- Yukon Territory

--- Mega's joint venture partner Cash Minerals intersected visible native copper at the Odie prospect, Wernecke Uranium District, Yukon. Drilling results were reported on June 26, 2007.

--- Cash Minerals also commenced drilling on the Lumina and Igor prospects in June and Mega reported drill results in September 2007. At Igor: 22.25 metres at 0.055% U3O8, 2.82% Cu, 5.2 g/t Ag and 0.03 g/t Au; and at Lumina: 1.5 metres of 0.14% U3O8, 0.035% Mo and 0.08 g/t Au; as well as 40.1 metres of 0.014% U3O8, 0.047% Mo and 0.31 g/t Au.

-- Saskatchewan

--- Mega announced that it had entered into an agreement with Forum Uranium Corp. in respect of Forum's 100% owned Maurice Point property, which is located close to Cameco Corporation's Maurice Bay uranium deposit in the Athabasca Basin of northern Saskatchewan. Mega can earn a 55% interest (and an additional 15% interest) in the project. Mega further increased its presence in the Athabasca Basin by entering into option agreements with Geomode Mineral Exploration Ltd. to acquire 100% of 12,382 hectares of property and with CanAlaska Uranium to earn up to a 55% interest in 110,268 hectares of ground with uranium discovery potential.

-- Nunavut Territory

--- Mega entered into a letter of intent with Titan Uranium Incorporated whereby Mega can acquire an option to earn a 51% interest in Titan's land position in the Thelon Basin. In addition Mega entered into an option agreement with Kaminak Gold Corp. to earn up to a 55% interest in Kaminak's Washburn uranium project.

-- Labrador

--- Mega added to its property position in the Central Mineral Belt through an agreement with Santoy Resources Ltd. to acquire all of Santoy's right, title and interest in three projects in the region.

--- Mega commenced its Phase 3 drilling on the Mustang Lake property and began initial exploration on its Aillik East and Bruce River properties.


-- Mega's joint venture partner, Red Hill Energy Inc., drill tested targets in the Emeelt property.

- South America

-- Argentina

--- Most of the Company's exploration activities in South America were in Argentina. New property interests were acquired in Salta, Catamarca and Chubut Provinces in Argentina and Mega received encouraging uranium sample results in the Patagonia Project, Argentina.

-- Bolivia

--- Mega began ground inspection of radiometric anomalies and prospective geological settings with potential for unconformity-related uranium and other uranium deposit styles.

-- Colombia

--- Mega added four mining concessions in Colombia totaling 74 km2. Reconnaissance geological mapping, rock/stream sediment sampling and ground radiometric surveys were undertaken during the year.

Stewart Taylor, Mega's President and Qualified Person under NI 43-101, has reviewed the technical information in 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, Bolivia, Cameroon, Canada, Colombia and Mongolia. 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, Maureen and Lake Maitland properties, are subject to state policies which presently prohibit the mining of uranium in Queensland and Western Australia.


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, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

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 interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company's prospects, properties and business strategy.

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.


This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.

Contact Information

  • Investor Relations
    Mega Uranium Ltd.
    Richard Patricio
    VP Corporate and Legal Affairs
    (416) 643-7630
    Media Relations
    Mega Uranium Ltd.
    Director of Corporate Communications
    (416) 860-1717