December 15, 2011
Toronto, Canada - Mega UraniumLtd. (TSX:MGA)("Mega") is pleased to provide an update on its Canadian exploration.
Highlights
Nunatsiavut Government votes to remove ban on Uranium Mining in Labrador.New drill discovery at the NB showing with strong alteration and an initial best intercept of 10 m of 0.048% U3O8. Mineralized zone open at depth and across strike.NEWFOUNDLAND AND LABRADOR - CENTRALMINERAL BELT (U)
Nunatsiavut Government votesto remove ban on Uranium Mining
In adecision announced in a December 14, 2011 news release by the NunatsiavutGovernment (NG) of Labrador, the Nunatsiavut Assembly has voted unanimously tolift a moratorium on uranium mining on Labrador Inuit Lands. The ban wasimposed by NG in April 2008 and, according to NG, will be officially liftedafter the Nunatsiavut Environmental Protection Act comes into force on orbefore March 9, 2012.
Drillingby Mega on its Labrador properties had been postponed since early 2008 due tothe uncertainty surrounding the moratorium. The decision by Mega to resumedrilling in 2011 was made in anticipation of the removal of the ban.
Withthe lifting of the moratorium, Mega is planning a 2012 exploration program.Mega and its JV partners hold title to 29,475 ha of prospective uranium minerallicences in the Central Mineral Belt of Labrador, of which 17,562 ha are withinLabrador Inuit Lands, previously affected by the moratorium.
Aillik East Property (Mega100%)
In 2011, eleven diamond drill holes were completed for a total of 1109 mon Mega's wholly-owned Aillik East project in Eastern Central Labrador.Drilling tested four main targets; Harbinger, Priority One, Powe and NB.
The most encouraging results were on the NB target where drillingintersected 10 m of 0.048% U3O8, (from 8 m to 18 m with ahole dip of -45 ?) in hole AE-11-10. This mineralized zone is situated within alarger alteration zone of elevated sodium and iron (as hematite and magnetite).Alteration occurs both in the matrix of hydrothermal breccia zones and aspervasive replacement. This type ofhydrothermal alteration is characteristic of other uranium mineralized zones inthe Central Mineral Belt of Labrador, in particular Paladin EnergyLtd.'s Michelin deposit (43-101 Technical Report for Aurora Energy ResourcesInc., Aug 28th, 2008). The presence of uraniummineralization at the NB showing and associated favourable sodium and ironalteration demonstrates the potential of the Aillik East property to host adeposit.
A second hole (AE-11-11) was attempted under hole AE-11-10, however itstopped short of the target zone due to mechanical problems with the drill, andit was not possible to resume drilling. This was the last hole on the lasttarget of the program. Consequently the mineralized zone, which is open atdepth and along strike, is earmarked for further drilling in 2012.
NBtarget
TheNB showing is a zone of anomalous radioactivity parallel to a topographiclineament. The true width and strike extension of the lineament are obscured bycover but a target zone with discontinuous radioactivity and characteristicalteration is exposed over a zone of 80 m by 25 m. Uranium mineralization ishosted within Aillik Group felsic volcanic rocks and is associated withmagnetite and hematite alteration.
Twoholes were drilled at the NB showing in 2011, AE-11-10 and AE-11-11. AE-11-10intersected 10 m of 0.048% U3O8 from 8 m to 18 m. HoleAE-11-11 was abandoned due to mechanical problems with the drill beforereaching target depth.
Priority One target
Twotarget zones, exposed over approximately 250 m by 75 m and 105 m by 11 m whichare defined by anomalous radioactivity, mineralization in grab samples and ironoxide alteration. In2011, three holes were drilled in one of the target zones at Priority One. Asub-vertical zone of mineralization was intersected in all three holes,associated with hematite and magnetite alteration in felsic volcanicrocks. The best drill intercept was 5.85m of 0.032% U3O8 in hole AE-11-04 from 13 m to 18.85 mand 1.5 m of 0.044% U3O8 in AE-11-05 from 97 m to 98.5m.
Harbingertarget
Azone of anomalous radioactivity exposed in several outcrops of Aillik Groupfelsic volcanic rocks over an area of approximately 15 m by 80 m. Three holes were drilled at Harbinger in2011. The best result was 7 m of 0.020%U3O8 from 56 m to 63 m, in hole AE-11-03.
Powetarget
Threeholes were drilled under the Powe showing in 2011. Holes AE-11-07, AE-11-08 and AE-11-09 allintersected the target shear zone, but no mineralization was intersected.
Bruce River Property(Virginia-Mega JV)
Three diamond drill holes were completed for a total of 361 m at theNoseman showing on the Bruce River property. The holes were designed to test the down dip and across strikecontinuity of a mineralized zoneexposed intermittently over an area of approximately 200 m long by 75 mwide within a hydrothermal alterationzone exposed intermittently over 300 m long by 100 m wide.
The best uranium result was 0.13% U3O8 over 1.0 min hole NM-11-2 from 2.7 to 3.7 m in altered, cataclastic granite. The uranium mineralization at the Nosemanshowing correlated with 20 to 30 cm wide discreet shear zones at the contactbetween unaltered granitic host rock and cataclastic altered graniticrocks.
The projectis part of a joint venture with Virginia Energy Resources Ltd. (Mega 66.69%:Virginia 33.31%).
On all drilling completedin 2011, core sampling was conducted in accordance with NI 43-101 as well asthe Mineral Exploration Standards implemented by the Nunatsiavut Government ofLabrador. Mega includes regularstandards, and locally obtained blanks in its sample submissions. All samples were analyzed for uranium usingthe Delayed Neutron Count (DNC) method by Actlabs of Ancaster, Ontario. Actlabs is an ISO/IEC17025 and CAN-P-1579accredited laboratory. Comprehensiveprocedures are in place to ensure that no contamination of the environmentoccurs and strict protocols have been established to maintain the health andsafety of all program participants.
MichaelDownes Ph.D., P.Geo., Vice President North America and Qualified Person forMega, has reviewed the technical content of this news release.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with afocus on uranium properties in Australia,Canada and Cameroon. Furtherinformation on Mega can be found on the company's website atwww.megauranium.com. Mega Uranium's BenLomond and Maureen properties in Queensland,Australia are subject to a state policy which presently prohibits the mining ofuranium.
For further information, please contact:
Investor Relations Mega UraniumLtd. Richard Patricio EVP Corporateand Legal Affairs T: (416) 643-7630 info@megauranium.comwww.megauranium.com
NoteRegarding Forward-Looking information
Certain informationcontained in this press release constitutes "forward-looking information",which is information regarding possible events, conditions or results ofoperations that is based upon assumptions about future economic conditions andcourses of action. All information other than matters of historical fact may beforward-looking information. In some cases, forward-looking information can beidentified 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" andsimilar words or phrases (including negative variations) suggesting futureoutcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is notlimited to, statements about our plans regarding future acquisitions andproperty development, our expectations regarding the uranium market, globalgrowth and the use of nuclear power, our drill results, commodity prices andcore intersection lengths, in that they constitute estimates, based on certainassumptions of mineralization that may be encountered if a deposit were to bemined.
By its nature,forward-looking information involves known and unknown risks, uncertainties andother factors which may cause our actual results, performance or achievements,or industry results, to differ materially from those expressed or implied bysuch forward-looking information. Some of the risks and other factors thatcould cause actual results to differ materially from those expressed in theforward-looking information contained in this release include, but are notlimited to: risks and uncertainties relating to the interpretation of drillresults, the geology, grade and continuity of mineral deposits and conclusionsof economic evaluations; results of initial feasibility, pre-feasibility andfeasibility studies, and the possibility that future exploration, developmentor mining results will not be consistent with the Company's expectations; risksrelating to possible variations in reserves, grade, planned mining dilution andore loss, or recovery rates and changes in project parameters as plans continueto be refined; mining and development risks, including risks related toaccidents, equipment breakdowns, labour disputes (including work stoppages andstrikes) or other unanticipated difficulties with or interruptions inexploration and development; the potential for delays in exploration ordevelopment activities or the completion of feasibility studies; risks relatedto the inherent uncertainty of production and cost estimates and the potentialfor unexpected costs and expenses; risks related to commodity price and foreignexchange rate fluctuations; the uncertainty of profitability based upon thecyclical nature of the industry in which the Company operates; risks related tofailure to obtain adequate financing on a timely basis and on acceptable termsor delays in obtaining governmental approvals or in the completion ofdevelopment or construction activities; risks related to environmentalregulation and liability; political and regulatory risks associated with miningand exploration; and other risks and uncertainties related to the Company'sprospects, properties and business strategy.
Although we haveattempted to identify important factors that could cause actual results orevents to differ materially from those described in the forward-lookinginformation, readers are cautioned that this list is not exhaustive and theremay be other factors that we have not identified. Readers are cautioned not to place undue relianceon forward-looking information contained in this release. Forward-looking information is based upon ourbeliefs, estimates and opinions as at the date of this release, which webelieve are reasonable, but no assurance can be given that these will prove tobe correct. Furthermore, we undertake noobligation to update or revise forward-looking information if these beliefs,estimates and opinions or other circumstances should change, except asotherwise required by applicable law.
All forward-lookinginformation contained in this release is expressly qualified by this cautionarynote.