Mega Provides Update On Canadian Exploration

Mega Uranium Ltd. (TSX:MGA) (“Mega”) is pleased to provide an update on its Canadian exploration. These activities represent a reinvigoration of its exploration work through drilling on two properties, acquiring an interest in a uranium property and planning further drilling on uranium properties in 2011.

Highlights

• Mega has entered into an option agreement with Cameco Corporation where Mega and Forum Uranium Corp may jointly earn a 60% interest in the North West Athabasca uranium property.
• Mega has commenced a 1,800 metre drill program on the Mustang Lake uranium property in the Central Mineral Belt of Labrador, which is part of a joint venture with Virginia Energy Resources Ltd.
• A 1,000 metre drill program is being carried out by Mega on its Greenwich Lake PGM property in Ontario.
• On the Byron Bay REE property, replicate sampling by Mega yielded a grab sample containing 8.85% TREO.

North West Athabasca Property – Uranium (Cameco Option)

Mega is pleased to announce that it has entered into an option agreement with Cameco Corporation (“Cameco”) whereby Mega and Forum Uranium Corp (“Forum”) may jointly earn a 60% interest in the 98 square kilometre North West Athabasca uranium property located on the northwestern margin of the Athabasca Basin, Saskatchewan. Mega and Forum view this property as having very good potential for the discovery of high grade unconformity style uranium deposits.

The property hosts a non NI 43-101 compliant historical resource (drilled to a depth of 50 metres) of 1.5 million pounds uranium grading 0.6% U₃O₈ in the Maurice Bay deposit, (source: Saskatchewan Industry and Resources, Miscellaneous Report 2003-7; Note: A Qualified Person (QP), as defined in NI 43-101, has not done sufficient work to classify this historical estimate as current mineral resources. Mega is not treating the historical estimate as current mineral resources, as defined in NI43-101, and thus the historical estimate should not be relied upon). 

The deposit was discovered in 1977 by Uranerz Exploration and Mining Ltd., along with several other unconformity hosted showings. A showing in the northwest part of the property (Zone 2A) is basement hosted with grades of up to 5.68% U₃O₈ over 8.5 metres and requires further exploration.

Mega/Forum plan to test and expand the potential of the known mineralization and to locate new deposits using the latest in exploration techniques on a project that has seen most of its work in the late 70’s and early 80’s.   Initially, five areas have been selected to be covered by a ground gravity survey starting in mid-March. Gravity surveys of this type are designed to identify zones of lower density hydrothermal alteration, which are typically in spatial association with uranium deposits in the Athabasca Basin. Drilling is scheduled for later this year on Zone 2A, plus other targets, including those generated from the gravity survey.

Cameco owns an 87.5% participating interest and Areva a 12.5% participating interest in the North West Athabasca property. Forum and Mega may jointly earn a 60% interest in the property by committing to $750,000 in exploration within 15 months of the closing date, and incurring additional optional expenditures of $250,000 by the second anniversary of the agreement and a further $3 million on or before the fourth anniversary of the agreement, for a total expenditure of $4 million. In addition, Forum and Mega must make option payments of $60,000 upon closing, $80,000 by the first anniversary, $110,000 by the second anniversary and $150,000 by the third anniversary, for a total of $400,000 in cash option payments.

Forum and Mega have entered into a 50:50 Joint Venture agreement to manage the exploration program during the earn-in period, with Forum as initial operator.

Maurice Point Property – Uranium (Forum Option)

Mega has terminated its option with Forum Uranium Ltd. on the Maurice Point property located on the northwestern edge of the Athabasca Basin adjacent to the North West Athabasca property.

Mustang Lake Property – Uranium (Virginia-Mega JV)

Mega has commenced a 1,800 metre diamond drill program (7 holes), designed to test a structural target beneath Mustang Lake. The target is within a structural zone containing Aillik Group volcanic stratigraphy interpreted to trend from Paladin’s Michelin uranium deposit (located 8 km to the southwest) through the Mustang Lake property.

The target lies within the core of a SW‐plunging synform and is at the centre of a regional magnetic high which is considered prospective because known mineralized zones typically contain hematite and magnetite alteration. The target has known mineralization on either side with previous holes SP-06-10 intersecting 9.11 m of 0.11% U₃O₈ on the NW side of the target and  ML‐08‐07 intersecting 4.3 m of 0.044% U₃O₈ on the SE side. The project is part of a joint venture with Virginia Energy Resources Ltd. (Mega 66.69%: Virginia 33.31%).

Greenwich Lake Property – Ni, Cu, PGM (Mega)

Mega’s 100% owned Greenwich Lake property was originally acquired for its uranium potential but is now being explored for Nickel-Copper-Platinum Group Metals (Ni-Cu-PGM). The property is located northwest of Thunder Bay, Ontario and approximately 5 km to the east of Magma Metals Limited's Ni-Cu-PGM discovery, which is an advanced platinum group metal exploration project with significant copper and nickel credits. The geological setting is interpreted to be analogous to that hosting the world-class Ni-Cu-PGM deposits of the Noril’sk-Talnakh region in Russia.

A 1,000 metre diamond drill program (6 holes) is currently being completed on two targets that are defined by sinuous magnetic highs coincident with weak EM anomalies. 

Byron Bay Property – REE (Mega)

Prospecting and ground-radiometric surveying in 2010 resulted in the discovery of additional REE mineralization at Mega’s wholly-owned Byron Bay Property in eastern Labrador, in an area that was originally explored for uranium.   A replicate sample from the 2009 discovery outcrop (Mega Uranium Ltd., press release January 12^th, 2010) yielded a sample containing 8.85% TREO¹ (Total Rare Earth Element Oxide), including 1.83% La₂O₃, 4.02% Ce₂O₃, 0.48% Pr₂O₃, 1.74% Nd₂O₃, 0.29% Sm₂O₃ and 0.20% Y₂O₃. All other REE oxide amounts in this sample ranged from 0% to 0.18%.   REE mineralization is hosted by monzodiorite to granodiorite and the primary REE carrier phase is monazite, as identified by scanning electron microscopy. A total of 14 grab samples were taken from an exposed zone 200 metres by 400 metres and 5 of these samples exceeded 1% TREO. The other samples ranged from 0.014–0.33% TREO. ( ¹TREO is defined as rare earth elements, calculated as oxides, including lanthanum to lutetium plus yttrium.)

Analysis of Rare Earth Elements was carried out by Actlabs (Ancaster, Ontario) which is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. All samples were analysed using Actlab’s Rare Earth Element-Niobium-Zirconium-Yttrium-Tantalum-Uranium-Thorium-Beryllium-Phosphate-Tin Assay ICP and ICP/MS Package. Sampling was conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador. Mega includes regular standards and locally obtained blanks in its sample submissions. 

Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega, has reviewed the technical content of this news release.

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada and Cameroon. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s uranium properties in Queensland, Australia, including without limitation Ben Lomond and Maureen, are subject to a State policy which presently prohibits the mining of uranium.

For further information, please contact:

Note 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. Forward-looking information in this press release includes, but is not limited to, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

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: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company’s prospects, properties and business strategy.

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.