Mega Announces Significant Increase of Its Gold Resources at the North Madsen Project in Red Lake, Ontario

Mega Precious Metals Inc. (TSX-V:MGP) ('Mega?) is pleased to
announce the completion of an updated NI 43-101 compliant resource
estimate for the North Madsen project.

The estimates are in-situ and undiluted and figures are rounded

Resource
model is using a 0.5 g/tonne cut off for Main Zone, Laverty and Buffalo
West Extension zones

Highlights:

• 
  Sensitivity analysis indicates robust economics, excellent potential
  to improve resource grades at lower gold prices and higher cut off
  grades;
  
• 
  resources remain open at depth and along strike; and
  
• 
  potential for further resource additions in nearby areas is excellent.
  

Mr. Rogers Commented: 'This update represents a more than 2,700%
increase (in M & I) over our previously reported resource and
demonstrates the size and strength of gold mineralization within the
mineralized structures.We are pleased that the modeling has
extended known zones, upgraded the resource quality and substantially
increased the quantity of gold resources. The extension of known zones
and discovery of new zones continues to demonstrate the near surface
gold potential of the project and further supports my belief that open
pit potential exists in Red Lake. Mega continues to be one of the most
exciting advanced gold exploration companies in Canada with excellent
potential to continue to add high quality gold ounces at our projects.Our success in growing gold resources over the past 18 months is
depicted in our resource graph.?

Please click on the following link to view Figure 1, the Gold
Resource Growth graph: http://www.usetdas.com/pr/mega09212011003.jpg

Mineral Resources

Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues. The quantity and
grade of reported inferred resources in this estimation are uncertain in
nature and there has been insufficient exploration to define these
inferred resources as an indicated or measured mineral resource and it
is uncertain if further exploration will result in upgrading them to an
indicated or measured mineral resource category. The mineral resources
in this press release were estimated using CIM Standards.

Resource Calculation Methodology

The construction of the geological and block model was a product of
collaboration between Mega and Wardrop, A Tetra Tech Company (Tetra
Tech). Mega personnel included Glen Kuntz P.Geo, Chief Operating
Officer, Rory Ritchie Project Geologist and Seija Saarinen Geological
Technician. All data in the resource evaluation were reviewed by Tetra
Tech, with Mr. Todd McCracken P.Geo. assuming responsibility for the
resource estimate upon which the statements reported herein are based.

Mineral Resource Calculation

The geological model and corresponding sections and plans were generated
by Mega personnel and then audited by Tetra Tech. Sections were selected
at a tight spacing of 20 metres through the mineralized system and were
based on all available geological and assay information. They show that
major rock types and corresponding mineralized structures can be well
correlated on section and plan. Tetra Tech reviewed selected drill core
from the mineralized system, reviewed geological surface mapping,
trenches and logging and sampling protocols used by project staff and
agrees with the geological interpretation derived from the combination
of the historical and current geological interpretation. Mega prepared >
0.25g/t assay composites tables in Gemcom Software Version 6.3 to allow
inspection of the distribution of significant gold mineralized intervals.

The QAQC protocols and corresponding sample preparation and shipment
procedures for the North Madsen Project have been reviewed and approved
by Tetra Tech.

The resource estimate was based on geological data provided by
representatives from Mega Precious Metals and the most recent drilling
analytical analysis was provided by Accurassay Labs. This update
incorporates drilling conducted from surface during the first 9 months
of 2011 consisting of 53 holes for a total of 12,100 m.

The determination technique of the mineral resource is based on the
combination of geological modeling, geostatistics and conventional block
modeling using the ordinary kriging method of grade interpolation for
the Main and Laverty Dyke zones and Inverse Distance method for the
Buffalo West Extension quartz tourmaline and disseminated zones.

The block model resource estimate prepared by the Tetra Tech for the
Main (includes Main, South and West Zone extension) mineralized zone was
based on > 23,000 metres of diamond drilling in 127 diamond drill holes
and 37 channel samples. The assay data was reviewed and a composite
interval of 1.0 metres and a cap grade for the assays was 46.62 g/tonne
was used. Statistical and Variogram analysis was performed to determine
the 'nugget effect? and a parent block size of (15X15X15 m - sub celled)
was carried out.

The search ellipse parameters are the following:

The estimation method involved a three pass search method, with each
pass increasing the search parameters by a factor of two followed by a
factor of three and is consistent with standard block model methodology
for measured, indicated and inferred mineral resources. A minimum of
four samples and maximum of twenty samples were selected as requirements
for populating each block.

The block model resource estimate prepared by the Tetra Tech for the
Laverty Dyke mineralized zone was based on .>6176 metres of diamond
drilling in 61 diamond drill holes carried out between. The assay data
was reviewed and a composite interval of 1.0 metres and a cap grade for
the assays was 12.67 g/tonne in the granodiorite was used. Statistical
and Variogram analysis was performed to determine the 'nugget effect?
and a parent block size of (15X15X15 m - sub celled) was carried out.

The search ellipse parameters are the following:

The estimation method involved a three pass search method, with each
pass increasing the search parameters by a factor of two followed by a
factor of three and is consistent with standard block model methodology
for measured, indicated and inferred mineral resources. A minimum of
four samples and maximum of ten samples were selected as requirements
for populating each block.

The block model resource estimate prepared by the Tetra Tech for the
Buffalo West Extension mineralized zone was based on >8100 metres of
diamond drilling in 32 diamond drill holes .The assay data was reviewed
and a composite interval of 1.0 metres and a cap grade for the
disseminated zone was 12.68 g/tonne and 7.82 g/tonne for the
quartz/tourmaline zones were used. Statistical and Variogram analysis
was performed to determine the 'nugget effect? and a parent block size
of (15X15X15 m - sub celled) was carried out.

The Buffalo Zone block model used an inverse distance method for grade
estimation and the parameters were as follows:

• 
  Disseminated zone had a search rotation of 0 degrees
  
• 
  Quartz tourmaline zone had a search rotation of -15 degrees
  

The estimation method involved a three pass search method, with each
pass increasing the search parameters by a factor of two followed by a
factor of four and is consistent with standard block model methodology
for inferred mineral resources. A minimum of four samples and maximum of
twenty samples were selected as requirements for populating each block.

For the Main and Laverty Dyke Zones, the variogram results for each
block model are generally consistent with the geological model used in
the ordinary kriged estimation method having two axes that approximate
the observed geological and mineralized trend of the mineralized
structures and support the observed plunge of the second axis in the
geological model.

Each of the block models was constrained utilizing surfaces for the
following:

• 
  The overburden boundary
  
• 
  The mineralized zones and geological model
  
• 
  The claim boundary
  

Qualified Person Comments/Quality Control Procedures

This press release has been prepared and revised by Glen Kunz P. Geo.,
Chief Operating Officer (COO) and Mr. Todd McCracken P.Geo. of Tetra
Tech, both of whom are Qualified Persons under the NI 43-101 guidelines.
The resource estimate has been prepared in compliance with National
Instrument 43-101 and form NI 43-101F1, which requires that the estimate
be prepared in accordance with the 'CIM Definition Standards on Mineral
Resources and Mineral Reserves as prepared by the CIM Standing Committee
on Reserve Definitions and as adopted by CIM Council, December 11, 2005.

Glen Kuntz, Chief Operating Officer (COO), is the Qualified Person for
the information contained in this press release and is a Qualified
Person defined by National Instrument 43-101. Glen was Sr. Resource
Geologist at the Campbell Gold Mine and Global Spatial Data Systems
Coordinator for Placer Dome, Vice President Enterprise Mining Solutions
for Runge Ltd., and most recently, Vice President Global Operations for
GMC Global and President North America Operations for GMC Global.

Mega Precious Metals Inc. is a well financed Canadian-based
mineral exploration company with several projects in Northwestern
Ontario, Manitoba and Nunavut. The Company is committed to an
accelerated growth strategy and is backed by a team of experienced
mining experts and a strong financial position. The Company is poised
for rapid expansion through quick response to new opportunities and
changes in the market. Mega′s common shares trade on the TSX Venture
Exchange under the symbol MGP.

For further information and presentation material, please review the
Mega website at www.megapmi.com

Forward-looking Statements

Certain statements in this press release relating to the Company′s
exploration activities, project expenditures and business plans are
'forward-looking statements' within the meaning of securities
legislation.The Company does not intend, and does not assume any
obligation, to update these forward-looking statements.These
forward-looking statements represent management′s best judgment based on
current facts and assumptions that management considers reasonable. The
Company makes no representation that reasonable business people in
possession of the same information would reach the same conclusions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements.In particular,
fluctuations in the price of gold or in currency markets could prevent
the Company from achieving its targets.Readers should not place
undue reliance on forward-looking statements. More information about
risks and uncertainties affecting the Company and its business is
available in Mega Precious Metal′s filings which are posted on sedar at www.sedar.com.

There is no guarantee that drill results reported in this news
release will lead to the identification of a deposit that can be mined
economically, and further work is required to identify a reserve or
resource.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Mega Precious Metals Inc.

Jim Rogers, President and Chief
Executive Officer

O: 807-766-3380

TF: 877-592-3380

info@megapmi.com

Shares
Issued: 76,256,980