Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

October 23, 2006 09:17 ET

Mega Expresses Intention to Move to Compulsory Acquisition of Remaining Redport Shares

TORONTO, ONTARIO--(CCNMatthews - Oct. 23, 2006) - Mega Uranium Ltd. (TSX:MGA) announces that Mega Redport Pty Ltd., Mega's wholly owned subsidiary ("Mega"), having acquired a relevant interest in more than 90% of the ordinary shares issued and outstanding of Redport Limited ("Redport"), intends to move to acquire the remainder of those ordinary shares by compulsory acquisition soon after the close of the takeover offer period (see below). As this will result in Mega owning 100% of Redport's shares, Mega also intends to de-list Redport from the Australian Stock Exchange.

As at close of trading on October 20, 2006, Mega also held acceptances for 78.51% of Redport's listed options, and 100% of 5 of the 9 classes of Redport's unlisted options. Mega also announces that, once it has compulsorily acquired the remainder of Redport's ordinary shares, it intends to move to compulsorily acquire any options that remain outstanding after the close of the takeover offer period.

The takeover offers made by Mega for Redport shares and options will remain open until 5.00pm, Brisbane time on October 31, 2006.

As explained in Mega's press release dated July 7, 2006, through this acquisition of Redport, Mega will obtain Redport's principal asset, the Lake Maitland uranium project in Western Australia, which contains a National Instrument 43-101 ("NI 43-101") compliant inferred mineral resource of 23.7 million pounds U3O8. Other assets include interests in uranium exploration properties in Western Australia and South Australia, a royalty interest in Paladin Resources Ltd.'s Langer Heinrich project in Namibia, and cash reserves of approximately $A9 million ($C7.4 million). Through this transaction, Mega will also acquire the services of Redport's management and consultants, who have considerable experience and expertise in uranium exploration, feasibility studies and mine development.

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia and Canada. 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 the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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