Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

December 04, 2007 08:00 ET

Update on Mega's Australian Uranium Exploration Programmes

- Molybdenum intersections in the Maureen (Queensland) uranium resource include 19 metres @ 0.21% Mo and 22 metres @ 0.34% Mo. - Prominent radiometric anomalies delineated in the Oasis Project and Tabletop Joint Venture (Queensland). - Encouraging results from the Cronje Dam Project (South Australia).

TORONTO, ONTARIO--(Marketwire - Dec. 4, 2007) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce progress in its various Australian uranium exploration projects.

Georgetown (Queensland)

In the Georgetown project, assay results were received for 35 reverse-circulation (RC) holes (total 4194 metres), which were drilled in and around the 6.5 million pounds U3O8 Maureen historical resource(1) to infill gaps in the known resource, to seek extensions of the resource and to test for other mineralised zones in the immediate vicinity. The results are summarized in the attached table(2). Within the resource itself, the drilling results were very encouraging, as the uranium grades were as expected, while the molybdenum results provided further evidence that the molybdenum grade of the resource is higher than the reported historical resource average grade of 0.07% Mo. Results included 19 metres @ 0.21% Mo from 162 metres hole depth in Hole 9257, 22 metres @ 0.34% Mo from 99 metres in Hole 9262, and 4 metres @ 0.28% Mo from 129 metres in Hole 9265.

There were mixed results in the drilling of targets in the vicinity of the known Maureen resource. Drilling of a zone of elevated molybdenum immediately south of the resource intersected 4 metres @ 0.11% Mo from 25 metres hole depth in Hole 9251, and 7 metres @ 0.19% Mo from 46 metres in Hole 9253, but elsewhere there were no significant intersections of uranium or molybdenum.

Elsewhere in the Georgetown Project, a detailed review was undertaken of previous exploration data from the Central 50 Zone of the east-west trending Lineament Prospect, which is located some 30 kilometres south of the Maureen resource. In 1981, Central 50 was reported by Esso Exploration and Production Australia Inc. ("Esso") to contain a historical resource(1) of 1.3 million pounds U3O8 at an average grade of 0.16% U3O8, based on a 0.045% U3O8 cut-off. The review indicated that the Central 50 mineralisation extended westwards at a shallower angle than previously interpreted by Esso, and that consequently potential existed for economically viable uranium resources to the west. This potential was then investigated by eight RC holes comprising a total of 1525 metres. Results are awaited.

Mining Associates Pty. Ltd. of Brisbane continued work on establishing a new NI43-101-compliant ore resource estimate for the Maureen deposit, based on historical data and the results obtained from Mega's drilling programmes in 2006 and 2007.

The detailed 23,300 line kilometre airborne magnetic-radiometric survey over selected portions of the Georgetown project was completed. The survey was conducted by Universal Tracking Systems Pty. Ltd. at a line spacing of 100 metres and sensor height of 50 metres. Processing and interpretation of the data are underway.

Oasis (Queensland)

In the Oasis Project, located adjacent to, and southeast of the Georgetown Project, a 10 hole, 1710 metre, RC drilling programme was undertaken to test for depth and strike extensions of the Oasis prospect. Previous drilling of Oasis, by Esso Exploration and Production Australia Inc. in 1977-1979 and Glengarry Resources in 2005/2006, delineated a 330 metres long, steeply dipping, coherent zone of uraninite mineralisation to a depth of 175 metres. The delineated zone is up to 15 metres thick and has an average grade of the order of 0.10-0.15% U3O8. All 10 holes successfully transected the mineralized zone, but intersected only sub-economic uranium mineralisation.

Processing and interpretation of data from the recent detailed 20,500 line kilometre airborne magnetic-radiometric survey has identified a number of previously untested uranium channel anomalies, which have been selected for ground follow up in 2008. These include two strong anomalies some four kilometers SSE of the Oasis prospect and a prominent anomaly 24 kilometres southwest of Oasis.

Tabletop JV (Queensland)

The recent airborne magnetic-radiometric survey has delineated several linear uranium channel anomalies in the portion of the Tabletop Joint Venture ground which lies adjacent to the southwest part of the Oasis Project. The anomalies appear to be concordant with the sandstone/quartz phyllite stratigraphy of the area. Ground follow up will be undertaken in April 2008, when field work is resumed after the wet season.

Mega can acquire an 80% interest in the Tabletop Joint Venture ground from the Australian public company, Queensland Gold and Minerals Ltd. by funding all expenditure to the definition of a NI43-101-compliant uranium resource.

Kintyre Rocks (Western Australia)

In the Kintyre Rocks Project, Mega was unable to commence the planned drilling of targets located some 6 kilometres west-southwest of Rio Tinto Ltd's Kintyre uranium resource (79 million pounds U3O8), as it is still awaiting approval of a track clearing permit application from the West Australia Department of Industry and Resources. As field work in this area has now been terminated due to rain and heat, drilling has been postponed until the onset of more favourable conditions in late March/early April 2008.

Aura Energy JV (Western Australia)

In the Gunbarrel Basin of Western Australia, Mega's Joint Venture partner, ASX-listed Aura Energy ("Aura"), conducted a helicopter-borne EM/magnetometer survey, using the Reptem system, over its 3750 km2 ground holdings, in order to define palaeochannels that may host uraniferous sediments. The survey successfully delineated prominent palaeochannels in the Kirgella Rocks and Carlon areas, but in the other tenements the presence of substantial salt lakes limited the effectiveness of the EM penetration. Based on the survey results and other considerations, a 53 hole, 4200 metre RC drilling programme has been designed to test palaeochannels in the Kirgella Rocks and Neale (Lake Rason) Projects.

The Gunbarrel Basin, located east of the Archaean Yilgarn Block, contains a large endowment of sediment-hosted uranium, but is significantly less explored than the other major uranium provinces of Australia. The combined uranium resources of the two largest known deposits in the region, Mulga Rock and Ponton, are reported to exceed 100 million pounds U3O8. Aura's properties cover extensive portions of three of the four main palaeochannels in the region, including large areas upstream from the Ponton and Mulga Rock deposits.

In the Aura Energy Joint Venture, Mega can earn an initial 50% interest from Aura through total expenditure of $A3 million within three years.

Cronje Dam (South Australia)

58 rotary mud holes (total 5804 metres), at a wide spacing of 200 metres and 400 metres, were drilled in the Cronje Dam Project to test uraniferous palaeochannels in several prospect areas. The 1000 km2 project area, located on the northern margin of the Murray Basin, covers Tertiary sediments immediately south of the Proterozoic Curnamona Craton, which hosts the Radium Hill and Crocker Well uranium deposits. The drilling was designed to follow up encouraging results from previous widely-spaced reconnaissance drilling, including 3 metres @ 507ppm U3O8 at 105 metres depth in the Kinloch Tank (Kinloch Dam) area, 4 metres @ 236ppm U3O8 at 98 metres depth in the Olary Creek (Jones Dam) area, and 2 metres @ 400ppm U3O8 at 104 metres depth in the Gairloch Dam area. Encouraging new results were obtained in the Kinloch Dam area, where one hole intersected 23 metres of fine sand from 107.9 metres in which down-hole gamma logging returned an average of 129 cps and maximum of 710 cps (eU3O8 0.015%). Other interesting results included a down-hole gamma reading of 1807 cps (eU3O8 0.044%) at a depth of 94.3 metres in a hole in the Jones Dam area. Geochemical results are awaited.

Corunna North (South Australia)

A 2000 metre RC drilling programme has commenced in the 260 km2 Corunna North tenement, in which Mega can earn up to an 80% interest in the uranium content from the ASX-listed InterMet Resources. The drilling is investigating the potential for unconformity-related uranium in IP anomalies associated with the Middle Proterozoic/Lower Proterozoic contact.



MAUREEN DRILLING RESULTS

-----------------------------------------------------------
Hole From To Width % U3O8 % Mo Location
(m) (m) (m)
-----------------------------------------------------------
9251 25 29 4 0.009 0.11 South of Southern Zone
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9252 NSM South of Southern Zone
-----------------------------------------------------------
9253 46 53 7 0.018 0.19 South of Southern Zone
-----------------------------------------------------------
57 60 3 0.19 0.08 South of Southern Zone
-----------------------------------------------------------
9254 NSM South of Southern zone
-----------------------------------------------------------
9255 NSM South of southern Zone
-----------------------------------------------------------
9256 152 156 4 0.14 0.05 Southern Zone
-----------------------------------------------------------
161 168 7 0.05 0.24 Southern Zone
-----------------------------------------------------------
9257 162 181 19 0.10 0.21 Southern Zone
-----------------------------------------------------------
9258 184 192 8 0.10 0.38 Southern Zone
-----------------------------------------------------------
9259 NSM Southern Zone
-----------------------------------------------------------
9260 116 117 1 0.27 0.29 Southern Zone
-----------------------------------------------------------
122 131 9 0.05 0.05
-----------------------------------------------------------
9261 121 126 5 0.02 0.06 Southern Zone
-----------------------------------------------------------
139 144 5 0.04 0.08 Southern Zone
-----------------------------------------------------------
9262 34 39 5 0.16 0.05 Southern Zone
-----------------------------------------------------------
99 121 22 0.04 0.34 Southern Zone
-----------------------------------------------------------
125 127 2 0.14 0.10 Southern Zone
-----------------------------------------------------------
9263 113 114 1 0.16 0.08 Northern Zone
-----------------------------------------------------------
9264 123 125 2 0.07 0.01 Northern zone
-----------------------------------------------------------
9265 129 133 4 0.37 0.28 Northern zone
-----------------------------------------------------------
9266 NSM North of Northern Zone
-----------------------------------------------------------
9267 NSM North of northern Zone
-----------------------------------------------------------
9268 150 156 6 0.08 0.15 Southern Zone
-----------------------------------------------------------
9269 170 178 8 0.05 0.06
-----------------------------------------------------------


- NSM equals no significant mineralization

- Holes 9270-9285 inclusive, all of which tested targets outside the Maureen resource and its immediate surrounding area, failed to intersect significant mineralization.

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

(1) The Maureen uranium-molybdenum resource estimate referred to in this release was reported in 1979 by Getty Mining Pty. Ltd. The Central 50 uranium resource estimate referred to in this release was reported by Esso Exploration and Production Australia Inc. in 1981. As these resource estimates were competently conducted according to the standards of the day, they are regarded by Mega as a reasonable reflection of the magnitude and grade of the mineralisation. However, as the resource estimates were conducted prior to the introduction of the JORC regulations in Australia, they must therefore be reported as unreliable at this time according to the NI43-101 guidelines and should not be relied upon. Mega is not treating these historical estimates as current estimates. As reported in this news release, Mega has engaged an Independent Qualified Person to establish a Maureen resource that is NI43-101 compliant, based on the historical data and the new assay results from the Maureen drilling programmes in 2006 and 2007.

(2) The table lists drill hole intersections at cut-offs of either 200 ppm U or 200 ppm Mo. Assays for uranium and molybdenum were undertaken on one metre intervals of material recovered from RC holes at the laboratory of ALS Chemex in Brisbane, using the pressed pellet XRF method (Lab. Code XRF-05). The results were reported in ppm U by ALS Chemex then converted to %U3O8 by Mega. The true widths represented by these intersections are yet to be determined.

ABOUT MEGA URANIUM

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

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