Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

July 08, 2009 08:00 ET

Mega Uranium Ltd.: Resource Increase and Upgrade at Lake Maitland, Western Australia

- Global resource at a 100ppm U3O8 cut-off increased to 25.2Mlbs U3O8 - 17% increase in contained uranium at a 200ppm U3O8 cut-off - Over 90% of the resource upgraded from Inferred to Indicated status.

TORONTO, ONTARIO--(Marketwire - July 8, 2009) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to report that a revised resource estimate for its Lake Maitland deposit in Western Australia, conducted by the Perth, Australia office of SRK Consulting ("SRK"), has resulted in an increase in the contained uranium and an upgrade of the bulk of the resource from Inferred Resource to the Indicated Resource status. A summary of the new resource and the previous resource estimate by Hellman & Schofield Pty Ltd in June 2006 is presented in the table below (note figures have been rounded). The increase and upgrade in the resource can be summarized as follows:

- At a 100ppm U3O8 cut-off, the contained uranium in the new resource of 23Mlbs U3O8 (Indicated) and 2.2Mlbs U3O8 (Inferred) is approximately 6% higher than in the previous Inferred Resource of 23.7Mlbs U3O8. Of this, 91% is classified as an Indicated Resource.

- At a 200ppm U3O8 cut-off, the contained uranium in the new resource of 19.9Mlbs U3O8 (Indicated) and 1.6Mlbs U3O8 (Inferred) is approximately 17% higher than in the previous Inferred Resource of 18.3Mlbs U3O8. Of this, 93% classified as an Indicated Resource.

- At a 500ppm U3O8 cut-off, the contained uranium in the new resource of 11.5Mlbs U3O8 (Indicated) and 0.6Mlbs U3O8 (Inferred) is approximately 16% higher than in the previous Inferred Resource of 10.4Mlbs U3O8. Of this, 95% is classified as an Indicated Resource.



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NI43-101 June 2006 NI43-101 June 2009
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NI43-101 Inferred NI43-101 Inferred NI43-101 Indicated
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Cut-off Cont- Cont- Cont-
Grade Grade ained Grade ained Grade ained
(ppm Million (ppm U3O8 Million (ppm U3O8 Million (ppm U3O8
U3O8) Tonnes U3O8) (Mlb) Tonnes U3O8) (Mlb) Tonnes U3O8) (Mlb)
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100 32.7 330 23.7 3.6 274 2.2 27.6 378 23.0
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200 16.6 500 18.3 1.9 374 1.6 18.0 502 19.9
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500 5.5 860 10.4 0.3 759 0.6 5.9 883 11.5
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Sheldon Inwentash, Mega's Chairman and CEO, commented, "The increase and upgrade at Lake Maitland confirm the quality of the resource and enhance the project economics. With the support of our Japanese partners, JAURD and ITOCHU, Mega is well on schedule to meet our target of bringing Lake Maitland into production in late 2011."

The increase and upgrade of the June 2006 resource are due to the results obtained in 2007/08 from Mega's extensive program of aircore/sonic core drilling and bulk density determinations as follows:

- 794 aircore holes (total 11676 meters) were drilled to infill the known resource on a 100 meter grid pattern and also to investigate the extension of the resource to the south.

- 42 sonic core holes (total 618 meters) were drilled to verify the results of the aircore drilling, to validate the use of the down hole gamma logging as the main determinate of the U3O8 grade and to provide material for initial detailed metallurgical testwork and bulk density determinations.

- Downhole radiometric gamma logging(i) was conducted on all the aircore and sonic core drill holes. In addition, numerous QA/QC checks were conducted, including relogging of holes drilled by Redport Ltd in 2005, logging of cased and uncased holes, and daily logging of reference holes.

- In order to obtain density factors for each of the six lithologies that host the resource, bulk density measurements were made on 147 samples of 0.5-meter intervals of sonic core and 67 grab samples from 13 trenches.

The new resource was defined within a mineralized envelope based on a 100ppm U3O8 cut-off. The estimation method was ordinary kriging based on a block size of 80m(N-S) x 60m(E-W) x 0.25m thickness. Density factors for the various resource host lithologies were applied to the resource model. More detailed information on the resource estimation method is provided in the SRK Report which will be made available on the SEDAR site.

The calcrete-style Lake Maitland deposit, is located close to infrastructure in the Eastern Goldfields region of central Western Australia, 108 kilometers southeast of Wiluna. The deposit occurs in the form of a single, coherent layer, 1-3 meters thick (average 1.7 meters), lying only 1-2 meters from surface, which is conducive to simple, low cost, open pit mining. Due to the soft nature of the ore and overburden, drilling and blasting will not be required. Metallurgical testwork to date indicates satisfactory uranium recoveries of greater than 90% using atmospheric alkaline leaching. The project is at the feasibility stage on schedule to commence uranium production in late 2011. The planned annual output is 1.65Mlbs U3O8.

Under agreements signed in June 2009, the Japan Australia Uranium Resources Development Company Ltd (JAURD) and ITOCHU Corporation can acquire an aggregate 35% interest in the Lake Maitland resource through staged payments totaling $US49 million. For further details refer to Mega's news releases of February 27 2009 and June 18 2009.

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

(i) All holes were logged by Borehole Wireline Pty Ltd using a digital Geovista 38mm total count gamma probe (GR 3348). The gamma probe was calibrated at the calibration pits of the Department of Water, Land and Biodiversity Conservation in Adelaide ("Adelaide Models" AM1, AM2, AM3) constructed under the supervision of CSIRO. These calibration pits have been shown to provide calibration standards for drill hole logging tools that are comparable to those at the DOE facility in Grand Junction, Colorado, USA. Verifications of the gamma probe were undertaken on a daily basis, using a Cesium (Cs137) jig. Pre and post project probe verifications were performed at the Adelaide Models.

The gamma probe measured the total gamma ray flux in the drill hole. The gamma ray readings were then converted to equivalent U3O8 (eU3O8) readings by David Wilson of 3D Exploration Pty Ltd of Perth, Western Australia, using the calibration factors derived in the Adelaide Models.

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.

Cautionary Statement 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.

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: the possibility that the necessary shareholder and regulatory approvals will not be obtained in a timely manner or at all, and that other conditions to completion of the acquisition will not be satisfied; and risks related to the inherent uncertainty of mineral exploration and development activities generally, including political and regulatory risks.

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.

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