Mega Provides Update on the Lake Maitland Uranium Project

TORONTO, ONTARIO--(Marketwire - June 21, 2011) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to provide an update on the development of its Lake Maitland Uranium Project ("Project") in Western Australia.

Mega has undertaken a study of the level of disequilibrium in the Lake Maitland deposit. Disequilibrium is an imbalance between the actual uranium content and the radioactivity emitted by a given volume of rock. It is caused by differential mobilisation (or precipitation) of uranium or its daughter isotopes from the deposition site or by a lack of time for the accumulation of the daughter isotopes to reach a state of equilibrium after the uranium has been deposited.

The results of the disequilibrium study conclude that, overall, positive disequilibrium exists in the Lake Maitland deposit and that downhole radiometric logging significantly understates the actual uranium grade. This has the potential to increase the magnitude of the resource as the resource estimation to date has been based mainly on data from downhole radiometric logging.

In addition to the disequilibrium study, an analysis of the close spaced drilling program conducted during the Test Pit Program has been completed. This program consisted of air core and diamond core drilling in two separate areas on the deposit, followed by downhole radiometric logging and chemical analysis of both the air-core and diamond core samples collected during the program.

Examination of the air-core drilling assays concluded that the use of chemical analysis of samples from air-core drilling is inappropriate for resource estimation at Lake Maitland. Examination of the diamond core assays showed them to be robust, with the analysis of the diamond hole radiometric logging versus the chemical analysis of the core samples indicating that, on average:

• The radiometric logging understates the mineralisation thickness

• The radiometric logging understates the mineralisation volume

• The radiometric logging understates the U₃O₈ grade

Further to this analysis, the results from density determinations on two diamond cores indicate appreciably higher density values than used to date for the resource estimation. Additional density determinations therefore have the potential to significantly increase the tonnage estimate for the Lake Maitland resource.

Mega is encouraged by these results and plans to undertake a Diamond Drill Program at Lake Maitland with the aim of increasing the resource tonnes, grade and contained uranium.

As a result of the proposed Diamond Drill Program, Mega is postponing completion of the Project Feasibility Study. The environmental studies contributing to the Environmental Review and Management Program ("ERMP") are nearing completion. Mega intends to complete these studies and submit a draft ERMP to the Western Australian Environmental Protection Authority at an appropriate time.

Mega wishes to note that its Farm-in partners, the Japan Australia Uranium Resources Development Co Ltd and ITOCHU Minerals and Energy of Australia Pty Ltd continue to support the Project in accordance with the terms of the Farm-in Agreement dated June 18, 2009.

EXPLORATION DRILLING

Mega is also pleased to announce that it has completed a drilling program to seek additional uranium resources to the south and southwest of Lake Maitland. The program comprised 103 air core holes of 5 to 30 meters depth, for a total of 1350 meters. Several holes intersected carbonate horizons similar to those hosting uranium mineralization at Lake Maitland. Downhole radiometric logging is underway.

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

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada 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.

Note 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, 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 and plans for future drilling, 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.