Twenty-Seven Capital Corp.
TSX VENTURE : TSC

Twenty-Seven Capital Corp.

October 31, 2006 12:26 ET

Twenty-Seven Capital Corp. to be Acquired by Mega Uranium Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Mr. Robert Carne, President is pleased to announce that Twenty-Seven Capital Corp. ("Twenty-Seven") (TSX VENTURE:TSC) has entered into a binding letter agreement with Mega Uranium Ltd. ("Mega") (TSX:MGA) dated October 30, 2006 whereby Mega will acquire all the outstanding common securities of Twenty-Seven.

"This transaction is a win-win for our shareholders, Mega's shareholders and for future investors looking for both growth and value in a developing uranium company," says Twenty-Seven's President Robert Carne. "Shareholders of Twenty-Seven maintain significant leverage to the exploration upside of its projects with reduced risk thanks to Mega's diversification of assets. For Mega, the company will now have a foothold into one of the most prospective uranium areas in Canada to complement its global uranium properties - most notably its advanced projects in Australia."

Under the agreement, shareholders of Twenty-Seven will receive one common share of Mega and one-half of one Mega common share purchase warrant for each three Twenty-Seven common shares held. Each whole Mega common share purchase warrant will entitle the holder to acquire one Mega common share for a purchase price of $6.00 per share for a period of five years from the date of issuance.

The share portion of the proposed transaction represents a premium of 24% to the closing price of Twenty-Seven's shares on the TSX Venture Exchange on October 30, 2006. The Mega warrants will also give shareholders of Twenty-Seven additional leverage to a growing, global uranium exploration company.

It is anticipated that the proposed transaction will proceed by way of a three-cornered amalgamation, whereby a wholly-owned subsidiary of Mega will enter into an amalgamation agreement with Twenty-Seven. The common shares of Twenty-Seven will be de-listed from the TSX Venture Exchange on closing of the transaction. The outstanding options of Twenty-Seven will be cancelled and outstanding warrants of Twenty-Seven will be adjusted in accordance with their dilution terms. As of October 30, 2006, Twenty-Seven had 20,296,122 fully diluted common shares outstanding. Mega and Strategic Metals Ltd., a major shareholder of Twenty-Seven, have entered into a support agreement whereby Strategic has agreed to vote its shares in favour of the proposed transaction.

The transaction is subject to a number of conditions including but not limited to, completion of due diligence, Twenty-Seven receiving the requisite shareholder approval, as well as regulatory approvals. There can be no assurance that the transaction will be completed as proposed or at all. It is intended that a meeting of the shareholders of Twenty-Seven will be held as soon as possible to approve the transaction.

Twenty-Seven Capital Corp. is a junior mining company exploring for uranium and iron-oxide copper-gold (IOCG) deposits. It holds ten significant projects in the Yukon Territory, two in British Columbia, one in the Northwest Territories and one in Mexico. Twenty-Seven Capital's primary assets are its uranium properties in the Wernecke Mountains of Yukon, which are under option to Cash Minerals Ltd. (TSX VENTURE:CHX).

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia and Canada. 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, the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.

TWENTY-SEVEN CAPITAL CORP.

Robert C. Carne, President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this news release.

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