Mega Uranium Ltd.

Mega Uranium Ltd.

June 12, 2008 09:05 ET

Mega Completes Drill Program at Mustang Lake Uranium Project, Labrador

TORONTO, ONTARIO--(Marketwire - June 12, 2008) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to provide results of the drill program on the Mustang Lake property, which is part of a 50:50 joint venture with Santoy Resources Ltd. (TSX VENTURE:SAN) ("Santoy") where Mega is the operator.

The current phase of drilling tested an interpreted northeast-trending structural zone. Such zones of deformation within the Aillik Group volcanic stratigraphy are considered to collectively trend from Aurora's Michelin deposit (located 8 km to the southwest) through the Mustang Lake property. Drilling at Mustang Lake was successful in intersecting both shear systems and uranium mineralization associated with hydrothermal altered host rocks.

A total of 8 holes for 2,215 metres was completed in three fences across the northeast trending structural zone at Mustang Lake. Additional drilling was planned but had to be curtailed due to deteriorating ice conditions on the lake. All holes intersected hydrothermally altered metavolcanics characterized by the presence of secondary magnetite and hematite associated with zones of shearing. Six holes intersected zones of weak to moderate anomalous radioactivity for which analytical results are shown in Table 1.

Hole ID From (m) To (m) Interval (m) U3O8%
ML-08-02 129.14 133.00 3.86 0.0048
ML-08-03 225.6 226.00 0.40 0.013
ML-08-04 190.8 191.40 0.60 0.0076
ML-08-05 102.62 103.06 0.44 0.014
162 162.56 0.56 0.028
283.25 283.75 0.50 0.013
ML-08-07 82.00 86.30 4.30 0.044
191 196.50 5.50 0.0041
235.00 236.00 1.00 0.065
260.00 260.50 0.50 0.009
ML-08-08 17.00 29.00 12.00 0.023
includes 18.50 19.50 1.00 0.144
174.76 178.22 3.46 0.011
183.30 185.00 1.70 0.0044
190.00 192.00 2.00 0.011
197.00 204.00 7.00 0.015
Table 1 - Delayed Neutron Count (DNC) analysis of mineralized intersections.

The best intersections in holes ML-08-07 and ML-08-08 as well as the 2006 drill intercept of 0.12% U3O8 over 9.11 metres, located 700 metres to the west, are associated with areas of elevated magnetics, thought to reflect increased hydrothermal magnetite commonly associated with uranium mineralization in this area. The continuing presence of encouraging results within this area of elevated magnetics indicates that this area is prospective and warrants further drilling.

Drilling and sampling were supervised by Tom Setterfield Ph.D., P.Geo. and conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador. Mega includes regular standards, duplicates and locally obtained blanks in its sample submissions and implements stringent chain of custody procedures. All samples were analyzed for uranium using the Delayed Neutron Count (DNC) method by Actlabs of Ancaster, Ontario. Actlabs is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. Comprehensive procedures are in place to ensure that no contamination of the environment occurs, and strict protocols have been established to maintain the health and safety of all program participants.

To view Fig. 1 - Mustang Lake drill plan with selected intersections (%U3O8) over airborne magnetic survey, please visit the following link:

Bruce River

Prospecting and geological follow-up of anomalies from the 2007 water geochemistry survey are planned for 2008. In addition, an induced polarization (IP) survey is planned for the historic Moran 'A' Uranium showing.

Aillik East

On the Aillik East property a program of trench sampling, geological mapping and detailed ground radiometric surveys is planned to follow-up radiometric anomalies identified in the 2007 airborne survey with the aim of delineating drill targets. In addition, portions of the property not covered by the 2007 airborne survey will be flown in 2008.

Other Labrador properties

Summer field work has commenced with a program of prospecting and geological reconnaissance on the Double Mer, Post Hill, CMB West, Trough and Straits properties. Results of a 2006 airborne radiometric, magnetic and EM survey identified many anomalous zones which will be prospected. An airborne radiometric and magnetic survey is planned for the newly staked Byron Bay, Cape Harrison and Michaels River properties.

The overall budget for Mega's 2008 exploration program in Labrador has been adjusted from approximately $9 million to $4.5 million, principally by the postponement of a significant drill program on the 100% owned Aillik East property. This adjustment is due to the uncertainty surrounding a recent moratorium on uranium mining enacted by the Nunatsiavut Government. While Mega has reduced its overall budget, the company is committed to a long term view in Labrador that includes fostering a relationship and continuing a dialogue with local communities and the Nunatsiavut Government.

Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega, has reviewed the technical content of this news release.


Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia, Mongolia and Cameroon. Further information on Mega can be found on the company's website at 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.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain forward-looking statements . All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Mega Uranium are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Mega Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Mega Uranium with securities regulators.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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