December 16, 2011
TORONTO, Ontario (December 16, 2011) - Mega Uranium Ltd. ("Mega") (TSX: "MGA") announces its audited results for the yearended September 30, 2011.
SUMMARY FINANCIAL RESULTS
As at September 30,2011, Mega had cash, cash equivalents and marketable securities totaling $26.6million, as compared to $49.9 million at the end of September 30, 2010, adecrease of 46%. The decrease is primarily attributable to funds (derivedmainly from the sale of marketable securities) used for mineral properties andexploration expenses. During the year Mega completed two flow-through privateplacement financings raising approximately $9.8 million in gross proceeds.
As at September 30,2011, the Company had mineral properties and related expenditures of $135.7million, as compared to $251.7 million as at September 30, 2010. The decreaseis due to write downs of mineral properties of $138.1 million, offset by explorationexpenditures of $22.2 million in Australia, Cameroon and Canada.
Summary results forthe year ended September 30, 2011, as compared to the year ended September 30,2010:
Loss from financial and tradingactivities from continuing operations for the year was $1.6 million, most ofwhich relates to unrealized losses on investments in public companies andmarketable securities, as compared to financial income of $1.8 million lastyear.Total expenses from continuingoperations, excluding write-downs of mineral properties and relatedexpenditures, were $9.4 million as compared to $12.3 million in the prior year. Write-downs of mineralproperties and related expenditures from continuing operations totaled $138.1million in fiscal 2011 as compared to $36.4 million last year. Net and comprehensive loss fromcontinuing operations in the year was $142.5 million ($0.56 per common share),as compared to a net and comprehensive loss of $35.2 million in the previousyear ($0.14 per common share)."During fiscal 2011,we continued to focus Mega's efforts on the development of our flagship LakeMaitland Project in Western Australia in close co-operation with our Japanesepartners. We anticipate that 2012 will be an exciting year for Mega as weadvance Lake Maitland and evaluate other corporate transactions aimed atenhancing shareholder value", said Sheldon Inwentash, Mega's CEO.
Project Activity Mega advanced its feasibility studies of the LakeMaitland uranium project in Western Australia and continued to make progress inthe approvals process for mine development. Mega also continued to develop itsexploration projects in Canada, Cameroon and elsewhere in Australia. Specifically, with regard to Lake Maitland, during fiscal2011, Mega advanced its definitive feasibility studies and successfullycompleted its Test Pit Program. As partof those studies, Mega also completed a disequilibrium study which concludedthat, overall, positive disequilibrium exists in the Lake Maitland deposit andthat downhole radiometric logging significantly understates the actual uraniumgrade. Examination of the diamond coreassays from the Test Pit Program showed them to be robust, with the analysis ofthe diamond hole radiometric logging versus the chemical analysis of the coresamples indicating that, on average, radiometric logging at Lake Maitlandunderstates the: (a) mineralisation thickness, (b) mineralisation volume and(c) U3O8 grade. In addition, the results of densitydeterminations of two diamond drill cores from the Test Pit Program indicatedappreciably higher density values than used to date for the resourceestimation. Based on these encouraging disequilibrium and density data, Megacommenced a diamond drilling program at Lake Maitland in October 2011 with theaim of increasing the resource tonnage, grade and contained uranium.
Stewart Taylor, Mega's President and QualifiedPerson under NI 43-101, has reviewed the technical information in this releaseand has verified the contents disclosed.
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 at www.megauranium.com. Mega Uranium's Ben Lomond and Maureenproperties in Queensland, Australia are subject to a State policy whichpresently prohibits the mining of uranium.
For furtherinformation, please contact:
InvestorRelations Mega Uranium Ltd. Richard Patricio EVP Corporate 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 that couldcause 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 of developmentor construction activities; risks related to environmental regulation andliability; political and regulatory risks associated with mining andexploration; 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 there maybe other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-lookinginformation contained in this release. Forward-looking information is based upon our beliefs, estimates andopinions as at the date of this release, which we believe are reasonable, butno assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation toupdate or revise forward-looking information if these beliefs, estimates andopinions or other circumstances should change, except as otherwise required byapplicable law.
All forward-lookinginformation contained in this release is expressly qualified by this cautionarynote.
Note Regarding Disclosure for MineralProjects
This press release contains disclosureregarding our mineral resources. Mineralresources are not mineral reserves and do not have demonstrated economicviability. Mineral resources may never be converted into reserves. Furthermore,inferred resources are considered too speculative geologically to have theeconomic considerations applied to them that would enable them to becategorized as mineral reserves. Further exploration will be required toupgrade the inferred resources to a higher resource category.