Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

May 13, 2009 16:00 ET

Mega Uranium Ltd. Releases Unaudited Results for the Three and Six Months Ended March 31, 2009

TORONTO, ONTARIO--(Marketwire - May 13, 2009) - Mega Uranium Ltd. ("Mega") (TSX:MGA) today announces its unaudited results for the three and six months ended March 31, 2009.

SUMMARY FINANCIAL RESULTS

As at March 31, 2009, Mega had cash, cash equivalents and marketable securities totaling $33.8 million, as compared to $49.0 million at the end of September 30, 2008. As at March 31, 2009, the Company had mineral properties and related expenditures of $289.0 million, as compared to $283.1 million as at September 30, 2008. The increase is due to Mega's cash expenditures for exploration activities, primarily on its mineral properties in Australia, South America and Africa.

Summary results for the three months ended March 31, 2009, as compared to the three months ended March 31, 2008:

- Financial gain was $1,756,000, as compared to financial loss of $2,216,000 for the three months ended March 31, 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 $2,404,000 in the current period, as compared to $2,892,000 for the three months ended March 31, 2008. The decrease is due to a general reduction of business activity and the closure of our South African office.

- Net income in the quarter was $2,230,000 ($0.01 per common share) as compared to a net loss of $20,981,000 ($0.12 per common share) for the three months ended March 31, 2008.

Summary results for the six months ended March 31, 2009 as compared to the six months ended March 31, 2008:

- Financial loss was $427,000 as compared to financial loss of $2,233,000 for the six months ended March 31, 2008. The financial loss was due primarily to unrealized losses on investments in public companies.

- Total operating, general and administrative expenses were $5,635,000 in the current period, as compared to $4,998,000 for the six months ended March 31, 2008. The increase was due primarily to increased professional fees related to both Cameroon and Australian activities.

- Net loss in the six month period was $8,136,000 ($0.04 per common share) as compared to a net loss of $22,884,000 ($0.13 per common share) for the six months ended March 31, 2008.

Project Activity

In late February, Mega announced a significant milestone in the development of its 23.7Mlbs U3O8 Lake Maitland resource in Western Australia with the signing of a non-binding memorandum of understanding (MOU) with the Japan Australia Uranium Development Co. Ltd. (JAURD) and ITOCHU Corporation. Under the MOU, the Japanese consortium can earn an aggregate 35% interest in Lake Maitland through aggregate payments of $US49 million. The parties are currently negotiating a definitive farm-in and joint venture agreement, the execution of which remains subject to the satisfaction of certain conditions.

In the first three months of 2009, Mega continued its feasibility studies of Lake Maitland and progressed exploration of priority projects in Argentina and Cameroon. Elsewhere, some planned exploration activities in Australia, Canada, Colombia, Bolivia and Mongolia were deferred in order to preserve the Company's cash resources.

In early January, Mega provided an update of exploration activities in its Georgetown Project in Queensland. Drilling results in the Central 50 prospect, located 25 kilometers south-southwest of the company's Maureen uranium resource, included 2 meters @ 0.21% U3O8, and 15 meters@ 0.10% U3O8 - refer to the news release of January 15 2009.

In early February, Mega reported further encouraging results in its investigation of the resource potential of surficial conglomerates in the Laguna Salada and Condor portions of its Patagonia Project in Chubut Province, Argentina - refer to the news release of February 5 2009.

In early March, Mega announced encouraging results in its first pass drilling program of the Kitongo prospect in Cameroon. Results included 3.4 meters @ 0.10% U3O8, 3 meters @ 0.13% U3O8 and 41.9 meters @ 468 ppm U3O8. - refer to the news release of March 3 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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