May 11, 2012
TORONTO, Ontario (May 11, 2012) - Mega Uranium Ltd. ("Mega")(TSX: "MGA") announces its unaudited results for the three and six months endedMarch 31, 2012.
This is the second quarter for whichthe Company has reported its operating results and financial position underInternational Financial Reporting Standards ("IFRS"). All comparativeinformation contained in the March 31, 2011 interim consolidated financialstatements has been restated to conform to the accounting policies under IFRS.
SUMMARYFINANCIAL RESULTS
As at March 31, 2012, Mega had cash,cash equivalents and short term investments totaling $18.4 million, as comparedto $26.6 million at the end of September 30, 2011, a decrease of 30.8%. Thedecrease is primarily attributable to funds used primarily on the Lake Maitlandfeasibility costs and other exploration expenditure incurred during the period.
As at March 31, 2012, the Company hadmineral properties and related expenditures of $144.8 million as compared to $135million as at September 30, 2011. The increase is due to expenditures incurredprimarily on Lake Maitland and other mineral properties in Australia, Cameroonand Canada. Summary results for the three monthsended March 31, 2012, as compared to the three months ended March 31, 2011:
Net loss for the three month ended March 31, 2012was $0.38 million ($0.00 per common share) compared to net loss of $13.2million for the three months ended March 31, 2011 ($0.05 per common share).Total expenses for the three months ended March31, 2012 from operations were $1.9 million, as compared to $3.2 million for thethree months ended March 31, 2011.Summary results for the six monthsended March 31, 2012 as compared to the six months ended March 31, 2011:
Net loss for the six month ended March 31, 2012was $1.1 million ($0.00 per common share) compared to net loss of $4.2 millionfor the six months ended March 31, 2011 ($0.02 per common share).Total expenses from operations for the sixmonths ended March 31, 2012 were $3.8 million, as compared to $5.8 million forthe six months ended March 31, 2011.ProjectActivity During the quarter, Mega continued to advance its feasibility studies ofthe Lake Maitland uranium project in Western Australia. Mega has completed thediamond drilling program and anticipates completing analysis of the results bythe end of the second quarter of calendar 2012.
ABOUTMEGA 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 andMaureen properties in Queensland, Australia, are subject to a State policywhich presently prohibits the mining of uranium.
For further information,please contact:
Investor Relations Mega Uranium Ltd. Richard Patricio EVP Corporate Affairs T: (416)643-7630 info@megauranium.comwww.megauranium.comNoteRegarding 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-lookinginformation 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) suggestingfuture outcomes or statements regarding an outlook. Forward-looking information in this pressrelease includes, but is not limited to, statements about our plans regardingfuture acquisitions and property development, our expectations regarding theuranium market, global growth and the use of nuclear power, our drill results,commodity prices and core intersection lengths, in that they constituteestimates, based on certain assumptions of mineralization that may beencountered 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 andconclusions of economic evaluations; results of initial feasibility,pre-feasibility and feasibility studies, and the possibility that futureexploration, development or mining results will not be consistent with theCompany's expectations; risks relating to possible variations in reserves,grade, planned mining dilution and ore loss, or recovery rates and changes inproject parameters as plans continue to be refined; mining and developmentrisks, including risks related to accidents, equipment breakdowns, labourdisputes (including work stoppages and strikes) or other unanticipated difficultieswith or interruptions in exploration and development; the potential for delaysin exploration or development activities or the completion of feasibilitystudies; risks related to the inherent uncertainty of production and costestimates and the potential for unexpected costs and expenses; risks related tocommodity price and foreign exchange rate fluctuations; the uncertainty ofprofitability based upon the cyclical nature of the industry in which theCompany operates; risks related to failure to obtain adequate financing on atimely basis and on acceptable terms or delays in obtaining governmentalapprovals or in the completion of development or construction activities; risksrelated to environmental regulation and liability; political and regulatoryrisks associated with mining and exploration; and other risks and uncertaintiesrelated to the Company's prospects, 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 asotherwise required 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 mineralresources. Mineral resources are notmineral reserves and do not have demonstrated economic viability. Mineralresources may never be converted into reserves. Furthermore, inferred resourcesare considered too speculative geologically to have the economic considerationsapplied to them that would enable them to be categorized as mineral reserves.Further exploration will be required to upgrade the inferred resources to ahigher resource category.