Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

May 15, 2008 12:26 ET

Mega Uranium Ltd. Releases Unaudited Results for the Three and Six Months Ended March 31, 2008

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Mega Uranium Ltd. ("Mega") (TSX:MGA) today announces its unaudited results for the three and six months ended March 31, 2008.

Summary Financial Results

As at March 31, 2008, Mega had cash, cash equivalents and marketable securities totaling $69.9 million as compared to $114.0 million at the end of September 30, 2007. As at March 31, 2008, the Company had mineral properties and related expenditures of $484.8 million as compared to $466.9 million as at September 30, 2007. The increase is primarily due to Mega's cash expenditures for exploration activities on its mineral properties.

Selected results for the three months ended March 31, 2008 as compared to the three months ended March 31, 2007:

- Revenue decreased to a net reversal of $2,216,000 as compared to revenue of $5,087,000 for the three months ended March 31, 2007. The decrease was due primarily to unrealized losses on investments in public companies and marketable securities.

- Total operating, general and administrative expenses were $2,892,000 as compared to $1,556,000 for the three months ended March 31, 2007.

- Net loss in the quarter was $20,981,000 ($0.12 per common share) as compared to a net loss of $1,897,000 ($0.01 per common share) for the three months ended March 31, 2007.

Selected results for the six months ended March 31, 2008 as compared to the six months ended March 31, 2007:

- Revenue decreased to a net reversal of $2,233,000 as compared to revenue of $11,896,000 for the six months ended March 31, 2007. The decrease was due primarily to unrealized losses on investments in public companies and marketable securities.

- Total operating, general and administrative expenses were $4,998,000 as compared to $3,568,000 for the six months ended March 31, 2007.

- Net loss in the quarter was $22,884,000 ($0.13 per common share) as compared to a net loss of $2,772,000 ($0.01 per common share) for the six months ended March 31, 2007.

Acquisition Activity

Effective May 6, 2008, Mega completed its acquisition of Energentia Resources Inc., a junior mineral exploration company with uranium properties in Colombia, some of which are adjacent to Mega's tenements. Formerly a TSX Venture-listed company, Energentia is now a wholly-owned subsidiary of Mega. As consideration for the acquisition of all of the outstanding shares of Energentia, Mega issued an aggregate of 7,208,300 common shares to Energentia shareholders.

Project Activity

During the quarter, Mega announced a total 2008 budget of $44 million for its worldwide uranium exploration properties in Australia, Canada, Argentina, Bolivia, Colombia, Cameroon and Mongolia. The $44 million does not include funding of ongoing prefeasibility studies of Mega's Ben Lomond and Lake Maitland uranium resources in Australia. For more details on the exploration budget see Mega's press release dated March 25, 2008.

During the quarter, Mega reported the results of the 2007 exploration program on the Thelon Project, Nunavut, which is subject to an option agreement with Titan Uranium Inc. For more detailed information see Mega's press release dated January 18, 2008.

Mega also reported additional drill results from the 2007 exploration program at the Igor copper-gold-uranium property, located in the Wenecke Uranium District, Yukon, which is part of a Joint Venture with Cash Minerals Ltd. In 2007 a total of 9,042 metres was drilled in 31 holes at Igor which is similar in style to the IOCG mineralization at the Olympic Dam and Ernest Henry deposits in Australia. The results have confirmed that mineralization extends over a 600-metre strike length. For more detailed information see Mega's press release dated January 23, 2008. In February 2008, Cash Minerals elected to earn a 75% interest in the Igor Property. As part of its election, Cash paid Mega $1,000,000 and can maintain a 75% working interest in the Igor property provided it completes a bankable feasibility study on the Igor property by December 31, 2012. All other properties in the JV are 50:50 working interest.

Mega announced the commencement of a 3,600 metre drill campaign on the Maurice Point property in the western Athabasca Basin. The Maurice Point uranium property is under an option agreement with Forum Uranium Corp. whereby Mega can earn a 55% interest in the project by spending $8 million over three years.

Mega provided results of its Phase 3 drilling program on the Mustang Lake property and the first phase of drilling on the Bruce River property, both in the Central Mineral Belt of Labrador. For more detailed drill results see Mega's press release dated February 25, 2008.

A first phase diamond drilling program commenced in the 2,700 km2 Kitongo Project in Cameroon. The proposed initial 2,850 metre program comprises a total of ten holes from five sites along a 300 metre length of the Kitongo Fault Scarp.

Stewart Taylor, Mega's President and Qualified Person under NI43-101, is responsible for the information on acquisition and exploration activity 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 Australian uranium properties, including without limitation Ben Lomond, Maureen and Lake Maitland, are subject to State policies which presently prohibit the mining of uranium.

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