Mega Uranium Ltd. Releases Audited Results for the Year Ended September 30, 2011

TORONTO, ONTARIO -- (Marketwire) -- 12/16/11 -- Mega Uranium Ltd. ('Mega') (TSX: MGA) announces its audited results for the year ended September 30, 2011.

SUMMARY FINANCIAL RESULTS

As at September 30, 2011, Mega had cash, cash equivalents and marketable securities totaling $26.6 million, as compared to $49.9 million at the end of September 30, 2010, a decrease of 46%. The decrease is primarily attributable to funds (derived mainly from the sale of marketable securities) used for mineral properties and exploration expenses. During the year Mega completed two flow-through private placement financings raising approximately $9.8 million in gross proceeds.

As at September 30, 2011, the Company had mineral properties and related expenditures of $135.7 million, as compared to $251.7 million as at September 30, 2010. The decrease is due to write downs of mineral properties of $138.1 million, offset by exploration expenditures of $22.2 million in Australia, Cameroon and Canada.

Summary results for the year ended September 30, 2011, as compared to the year ended September 30, 2010:

--  Loss from financial and trading activities from continuing operations
    for the year was $1.6 million, most of which relates to unrealized
    losses on investments in public companies and marketable securities, as
    compared to financial income of $1.8 million last year.
--  Total expenses from continuing operations, excluding write-downs of
    mineral properties and related expenditures, were $9.4 million as
    compared to $12.3 million in the prior year.
--  Write-downs of mineral properties and related expenditures from
    continuing operations totaled $138.1 million in fiscal 2011 as compared
    to $36.4 million last year.
--  Net and comprehensive loss from continuing 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 previous year ($0.14 per
    common share).

'During fiscal 2011, we continued to focus Mega's efforts on the development of our flagship Lake Maitland Project in Western Australia in close co-operation with our Japanese partners. We anticipate that 2012 will be an exciting year for Mega as we advance Lake Maitland and evaluate other corporate transactions aimed at enhancing shareholder value', said Sheldon Inwentash, Mega's CEO.

PROJECT ACTIVITY

Mega advanced its feasibility studies of the Lake Maitland uranium project in Western Australia and continued to make progress in the approvals process for mine development. Mega also continued to develop its exploration projects in Canada, Cameroon and elsewhere in Australia.

Specifically, with regard to Lake Maitland, during fiscal 2011, Mega advanced its definitive feasibility studies and successfully completed its Test Pit Program. As part of those studies, Mega also completed a disequilibrium study which concluded that, overall, positive disequilibrium exists in the Lake Maitland deposit and that downhole radiometric logging significantly understates the actual uranium grade. Examination of the diamond core assays from the Test Pit Program showed them to be robust, with the analysis of the diamond hole radiometric logging versus the chemical analysis of the core samples indicating that, on average, radiometric logging at Lake Maitland understates the: (a) mineralisation thickness, (b) mineralisation volume and (c) U3O8 grade. In addition, the results of density determinations of two diamond drill cores from the Test Pit Program indicated appreciably higher density values than used to date for the resource estimation. Based on these encouraging disequilibrium and density data, Mega commenced a diamond drilling program at Lake Maitland in October 2011 with the aim of increasing the resource tonnage, grade and contained uranium.

Stewart Taylor, Mega's President and Qualified Person under NI 43-101, has reviewed the technical information in this release and has verified the contents disclosed.

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada and Cameroon. Further information on Mega can be found on the company's website at www.megauranium.com. Mega Uranium's Ben Lomond and Maureen properties in Queensland, Australia are subject to a State policy which presently prohibits the mining of uranium.

NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this press release constitutes 'forward-looking information', which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical 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 (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company's prospects, properties and business strategy.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

All forward-looking information contained in this release is expressly qualified by this cautionary note.

NOTE REGARDING DISCLOSURE FOR MINERAL PROJECTS

This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.

Contacts:

Mega Uranium Ltd. Investor Relations

Richard Patricio

EVP Corporate Affairs

(416) 643-7630
info@megauranium.com
www.megauranium.com