Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

August 13, 2009 09:56 ET

Mega Uranium Ltd. Releases Unaudited Results for the Three and Nine Months Ended June 30, 2009

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2009) - Mega Uranium Ltd. ("Mega") (TSX:MGA) today announces its unaudited results for the three and nine months ended June 30, 2009.

SUMMARY FINANCIAL RESULTS

As at June 30, 2009, Mega had cash, cash equivalents and marketable securities totaling $24.3 million, as compared to $49.0 million at the end of September 30, 2008. As at June 30, 2009, the Company had mineral properties and related expenditures of $292.8 million, as compared to $283.1 million as at September 30, 2008. The increase is due to Mega's cash expenditures on Lake Maitland development and for exploration activities, primarily on its mineral properties in Australia, South America and Africa.

Summary results for the three months ended June 30, 2009, as compared to the three months ended June 30, 2008:

- Financial gain was $3,277,000 as compared to a financial loss of $1,028,000 for the three months ended June 30, 2008. The financial gain was primarily attributable to unrealized gains on investments in public companies as the fair value of the company's portfolio holdings generally increased.

- Total operating, general and administrative expenses were $3,343,000 in the current period, as compared to $2,518,000 for the three months ended June 30, 2008. The increase is due to an increase in operational activities in subsidiaries located in Australia and also due to costs associated with Energentia Resources Inc. which was acquired in May 2008.

- Net loss in the quarter was $3,789,000 ($0.02 per common share) as compared to a net loss of $13,741,000 ($0.07 per common share) for the three months ended June 30, 2008.

Summary results for the nine months ended June 30, 2009 as compared to the nine months ended June 30, 2008:

- Financial gain was $2,850,000 as compared to a financial loss of $3,261,000 for the nine months ended June 30, 2008. The financial gain was due primarily to unrealized gains on investments in public companies.

- Total operating, general and administrative expenses were $8,978,000 in the current period, as compared to $7,516,000 for the nine months ended June 30, 2008. . The increase is due to an increase in operational activities in subsidiaries located in Australia and also due to costs associated with Energentia Resources Inc. which was acquired in May 2008.

- Net loss in the nine month period was $11,925,000 ($0.06 per common share) as compared to a net loss of $36,625,000 ($0.20 per common share) for the nine months ended June 30, 2008.

Project Activity

In the second quarter of 2009, Mega continued its feasibility studies of its Lake Maitland uranium resource in Western Australia and progressed exploration of priority projects in Argentina, Colombia and Cameroon. Planned exploration activities in several projects elsewhere were deferred in order to preserve the Company's cash resources.

On June 18 2009, Mega announced the completion of final documentation regarding the sale of 35% of the Lake Maitland Project to the Japan Australia Uranium Resources Development Co. Ltd. (JAURD) and ITOCHU Corporation (ITOCHU) for staged payments totaling $US49 million, and announced the completion a joint venture agreement between Mega, JAURD and ITOCHU to advance the development of the Lake Maitland uranium resource. Further details can be found in Mega's news releases of February 27, 2009, June 18, 2009 and August 7, 2009.

Stewart Taylor, Mega's President and Qualified Person under NI 43-101, has reviewed the technical information in 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, Argentina, Bolivia, Colombia, Mongolia 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.

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