TORONTO, Ontario (December 18, 2012) - Mega Uranium Ltd. ("Mega")(TSX: "MGA") announces its results for the year ended September 30, 2012.
SUMMARYFINANCIAL RESULTS
As at September 30, 2012, the Companyhad mineral properties and related expenditures of $129.1 million as comparedto $135 million as at September 30, 2011. Long term and short term Investmentsat fair value totaled $16.5 million as compared to $31.6 million as atSeptember 30, 2011.Also as at September 30, 2012 Company had cash and cashequivalent of $2.02 million as compared to $2 million as at September 30, 2011.
Summary results for the year ended September30, 2012, as compared to the year ended September 30, 2011:
Net loss for the year ended September 30, 2012was $20.2 million ($0.08 per common share) compared to a net loss of $126.4million for the year ended September 30, 2011 ($0.50 per common share).Total expenses for the year ended September 30,2012 from operations were $6.5 million, as compared to $9.5 million for the yearended September 30, 2011.| Consolidated statement of financial position Highlights | September 30, 2012 | September 30, 2011 |
| Cash and cash equivalents | $ 2,022 | $ 1,988 |
| Short term investments | 9,719 | 24,647 |
| Long term investments | 6,852 | 7,090 |
| Mineral properties and deferred exploration expenditure | 129,116 | 135,065 |
| Total assetsTotal liabilitiesShare capital, warrants and brokerwarrants , share option reserveAccumulated other comprehensiveincomeDeficit | 151,4201,832369,1053,821223,338 | 172,3293,662368,3183,414203,065 |
| Working capital | 11,921 | 24,534 |
During the year ended September 30, 2012, the Company spent$12.1 million on exploration and evaluation assets as compared to $22.2 millionduring the year ended September 30, 2011. During the year ended September 30,2012, the Company recorded an impairment of $18.5 million (2011 - $115.6million)on its exploration and evaluation assets.
ABOUTMEGA URANIUMMega 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.
For further information,please contact:
Investor Relations Mega Uranium Ltd. Richard Patricio EVP Corporate Affairs T: (416)643-7630 info@megauranium.comwww.megauranium.com
NoteRegarding Forward-Looking information
Certaininformation contained in this press release constitutes "forward-lookinginformation", which is information regarding possible events, conditions orresults of operations that is based upon assumptions about future economicconditions and courses of action. All information other than matters ofhistorical 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 (includingnegative variations) suggesting future outcomes or statements regarding anoutlook. Forward-looking information inthis press release includes, but is not limited to, statements about our plansregarding future acquisitions and property development, our expectationsregarding the uranium market, global growth and the use of nuclear power, ourdrill results, commodity prices and core intersection lengths, in that theyconstitute estimates, based on certain assumptions of mineralization that maybe encountered if a deposit were to be mined.
Byits nature, forward-looking information involves known and unknown risks,uncertainties and other factors which may cause our actual results, performanceor achievements, or industry results, to differ materially from those expressedor implied by such forward-looking information. Some of the risks and otherfactors that could cause actual results to differ materially from thoseexpressed in the forward-looking information contained in this release include,but are not limited to: risks and uncertainties relating to the interpretationof drill results, 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.
Althoughwe have attempted to identify important factors that could cause actual resultsor events 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 unduereliance on 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 as otherwiserequired by applicable law.
Allforward-looking information contained in this release is expressly qualified bythis cautionary note.
Note Regarding Disclosure forMineral Projects
This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reservesand do not have demonstrated economic viability. Mineral resources may never beconverted into reserves. Furthermore, inferred resources are considered toospeculative geologically to have the economic considerations applied to themthat would enable them to be categorized as mineral reserves. Furtherexploration will be required to upgrade the inferred resources to a higherresource category.