Mega Silver Inc.
TSX VENTURE : MSR

Mega Silver Inc.

November 12, 2008 17:33 ET

Mega Silver Options Eagle Vein Property Keno Hill, Yukon

Terminates Virginia Silver Project and Selwyn Project Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - Mega Silver Inc. ("Mega Silver") (TSX VENTURE:MSR) is pleased to announce that it has entered into an option agreement with Avino Silver & Gold Mines Ltd. ("Avino") (TSX VENTURE:ASM)(OTCBB:ASGMF)(FRANKFURT:GV6) to earn the exclusive right and option to acquire a 100% title and interest in the Eagle Property located in the historic Keno Hill silver district that has produced over 200 million ounces of silver. The property area is located roughly 38 kilometres northeast of Mayo and 350 kilometres due north of the capital of Whitehorse, Yukon Territory.

The Eagle Property is comprised of 14 Quartz Mining Leases within the Mayo Mining District, Yukon Territory. The property totals 209.8 hectares in three adjacent blocks that extend across roughly 4 kilometres on Galena Hill along the projected strike of the Eagle Vein. The addition of the Eagle Property to the Fisher and Spiderman Properties brings Mega Silver's total land position to 1,595.8 hectares in two adjacent claim blocks.

The Eagle Property includes historic surface trenches that expose a section of the Eagle Vein, a strong transverse vein-fault hosted in Keno Hill Quartzite. The Eagle Vein varies from 0.6 to 4.9 metres wide with mineralized lenses of galena, tetrahedrite and sphalerite. Yukon Government files report that a total of 33 holes totalling 3,075.5 metres have been drilled along 300 metres of vein strike on the property in two programs (1964 and 1978/79). The best intercepts are reported in the following table.



EAGLE VEIN - HISTORIC REPORTED DRILLING (YTG MinFile 105M 021)
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Reported Reported Silver
Year Operator Structure Intercept (m) g/t Lead % Zinc %
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1964 Jersey Yukon Branch 2.1 1,885.7 12.8 4.2
Mines Ltd. Vein
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Main Vein 0.15 7,624.9 1.2
(parallel ---------------------------------------
intercepts) 0.4 682.3 11.6
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1978/79 Teck Main Vein 1.5 366.6 5.4 6.8
Corporation (DDH JB3)
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Soil sampling conducted in 1971 by United Keno Hill Mines Ltd. outlined a strong 300 metre long Pb-Ag anomaly across the southern boundary of Mega Silver's adjoining Man claim that apparently represents the untested northeast extension of the Eagle Vein. The core of the soil anomaly measures roughly 200 by 100 metres and contains peak values of 2,280 ppm lead and 10.8 ppm silver (UKHM 1973. Assessment Report #060116).

The Eagle Vein roughly parallels the Hector and Calumet vein system 1.5 kilometres to the northwest. The Hector Calumet Mine accounted for almost half the total production in Keno Hill camp producing 2.99 million kilograms of silver (96 million ounces), 184 million kilograms of lead and 151 million kilograms of zinc.

Mega Silver completed a program of detailed soil sampling on its Spiderman property and infill soil sampling on the Fisher property in late summer of 2008. A 553 line-kilometre airborne Magnetic gradiometer survey was conducted on behalf of Mega Silver over the entire Fisher, Spiderman and Eagle property area in September 2008 by Canadian Mining Geophysics Ltd. Full results and interpretation are still pending. Mega Silver is planning a 4,000 metre drill program focused on the Eagle Vein for the 2009 field season.

Terms of Eagle property Option Agreement

To earn a 75% interest in the Eagle Property, Mega Silver must:

- Incur Exploration Costs totalling $7 million over five years.

- Make total cash payments of $400,000 over five years to Avino.

- Issue 500,000 common shares of Mega Silver in Years 4 and 5 to Avino.

After earning a 75% interest, Mega Silver may either elect to form a Joint Venture with Avino, or earn an additional 25% interest, whereby Mega Silver must:

- Take the property into production within 3 years, subject to a 2.5% Net Smelter Return and minimum $200,000 annual advance royalty payments payable for 5 years or until production begins.

The transaction is subject to approval of the TSX Venture Exchange.

Selwyn Project and Virginia Silver Property Update

Mega Silver announces that it has terminated option agreements for both the Virginia Silver Property with Endurance Gold Corporation and the Selwyn Project (Uno, Jake and Rogue Properties) with Strategic Minerals Inc.

Mr. David Tupper, P.Geo., Vice-President, Exploration of Mega Silver, a "qualified person" under National Instrument 43-101, is responsible for the technical aspects of this news release.

About Mega Silver

Mega Silver Inc. is a new mineral exploration company established to explore and develop high value silver opportunities globally. Mega Silver presently has exploration projects in Mexico and Canada and is well funded to carry out exploration and acquisition activities. Full information on Mega Silver can be found at www.sedar.com and on the Company's website, www.megasilver.ca.

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; ability to negotiate and enter into definitive agreements; potential benefits of the acquisitions; the costs and timing associated with integrating the acquisitions; production levels, timing and costs; potential contractual arrangements and the delivery of equipment; receipt of working capital; anticipated revenue; mineral reserve and resource estimates; and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, third party risks, acquisition risks, risks inherent in the mining industry, financing risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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