Mega Uranium Ltd.

Mega Uranium Ltd.

March 05, 2007 08:00 ET

Mega Uranium Mobilizes $15 Million (30,000 Metres) Uranium Exploration Program in the Wernecke District, Yukon with Cash Minerals Ltd.

Cash Minerals appointed operator of the Yukon Uranium Projects by Mega

TORONTO, ONTARIO--(CCNMatthews - March 5, 2007) - Mega Uranium Ltd. ("Mega") (TSX:MGA) is pleased to provide an update on its Yukon Uranium Projects, recently acquired through its acquisition of Twenty-Seven Capital Corp.

Mega has been advised by Cash Minerals Ltd. ("Cash") (TSX VENTURE:CHX), its joint venture partner in the Yukon Uranium Project, that Cash has mobilized ground geophysical crews on the Odie property, which was acquired in 2006 as part of an aggressive staking program in the Wernecke Uranium District, Yukon. Cash further advised that drilling on the Odie property is scheduled to commence in April 2007 with two drills.

Mega also announces that it has agreed to the appointment of Cash as the operator of the 2007 uranium exploration program for all properties subject to the Yukon Uranium Partnership between Mega and Cash. Cash has budgeted $15 million, and has readied five drill rigs and an experienced geological team set to drill 30,000 metres during the 2007 drilling season.

Odie Property

The Odie property comprises 1,560 claims covering approximately 325 square kilometres (Figure 1). Odie is the largest of 19 properties that Mega and Cash hold in the highly prospective Wernecke Uranium District. An extensive airborne geophysical survey conducted on Odie in 2006 identified coincident positive gravimetric and magnetic anomalies in interpreted dilatant fault zones (Figures 2 and 3), which are favourable areas for Iron Oxide Cu-Au-U (IOCG) mineralization thought to be similar to Olympic Dam.

Two of the five drills contracted by Cash for the 2007 exploration season will be mobilized on the Odie property, with drilling expected to start in April. It is anticipated that the 2007 field season at Odie will run from February to November.

In addition to Odie, Cash and Mega will continue exploration in 2007 with geophysical surveys and drilling at the Lumina, Igor and Vic properties. Together with Cash, Mega holds one of the largest portfolios of uranium prospects in the Wernecke Uranium District, Yukon, comprising over 4,000 claims covering over 800 square kilometres.

Igor and Lumina Properties

Cash has also advised that holes will be drilled at the Igor property at depth to follow up on encouraging results from 2005 and 2006 drilling and ground geophysical surveys, which helped to delineate a gravimetric anomaly close to surface in 2006. This gravity anomaly has not yet been tested and is expected to be drilled following the arrival of drills at the Igor property in June.

Drilling on the Lumina property will commence with two drills in June, where the exploration team will continue to test mineralization found in outcrops and drill holes. Comprehensive field work is also planned for Lumina and will include prospecting, detailed structural mapping and sampling.

Stewart Taylor, President of Mega, is the qualified person (as defined in National Instrument 43-101) who has reviewed the contents of this press release.

About Mega Uranium

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia, Colombia and Canada. Further information on Mega can be found on the company's website at


This press release contains disclosure that constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in the press release, other than statements of historical fact, may be "forward-looking". Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "possible", "targeting", "could", "might", "should", "believe", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this press release include, but are not limited to, those with respect to our exploration and drilling activities, including planned surveys, mapping and sampling, our expectations regarding the potential mineralization of our properties and anticipated exploration costs. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mega to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and factors include, but are not limited to, risks related to our joint venture operations, uncertainties associated with the outcome of our current exploration activities, changes in project parameters as our plans continue to be refined, changes in environmental and other regulations in the jurisdictions in which we operate, delays in obtaining governmental approvals or financing, economic and market factors which would limit the availability of capital, competition for acquisitions, the availability of technical expertise and equipment, and fluctuations in commodity prices, as well as those other risks and factors discussed in the section entitled "Description of the Business - Risks" in our annual information form for our fiscal year ended September 30, 2006 and in our other filings with certain of the Canadian securities regulatory authorities, which are available to the public at Although we have attempted to identify for the reader important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. We believe that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements. Forward-looking statements speak only as at the date on which they are made and we do not undertake to update any forward-looking information that is in this press release or otherwise contained in our public disclosure documents as a result of new information or the occurrence of future events or circumstances, except as required by law.

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