2005 News Releases
Russian Uranium Reports Received
Toronto, Ontario, Canada, December 12, 2005 – Mega Uranium Ltd. ("Mega") ("MGA":TSXV) and UGL Enterprises Ltd. (TSXV:UGS) (“UGL”) report the completion and receipt of five Russian-language reports commissioned by UGL covering eight of their joint venture Mongolian uranium properties and adjacent areas. The five reports cover: (1) Jargalan in Arkhangai Province, (2) Elgen and Naidal in Tuv Province, (3) Maikhan Tolgoi in Dornod Province and nearby Modot Del in Khentii Province, (4) Adag Usnii Khudag and Shorvog Gol, both in Sukhbaatar Province, and (5) Khashaat in Dundgovi Province. A sixth report, on the Baganurat property (Dornogovi Province) is currently being prepared and is expected to be submitted to UGL soon.
The reports were prepared in Irkutsk, Russia under the direction of senior Russian uranium geologists, some of who participated in previous joint Soviet-Mongolian exploration in Mongolia in the 1980’s and early 1990’s. The reports are extensive in their content and include Russian information pertaining to geography, known uranium occurrences, historical drilling and trenching The reports also recommend possible drill targets and provide general recommendations for areas for exploration expansion. Translation to English, review and other follow-up work, including obtaining additional maps and cross-referencing texts with maps, is currently being conducted by senior UGL staff and is expected to be completed by late January or early February.
UGL expects to begin fieldwork in early to mid April when snow cover is gone so that radiometric and radon surveys can be properly carried out, free of the negative influence of wet soil.
UGL is the 100% owner of 18 Mongolian uranium properties covering 339,000 hectares. As announced June 15, 2005, Mega Uranium has the right to earn a 50% interest in this portfolio. through the expenditure of US$1.5 million over three years, with a minimum of US$350,000 expended within the first year. Upon earning a 50% interest, a joint venture will be formed with the parties contributing pro-rata. At that juncture Mega Uranium will also have the option to increase its interest to 60% by expending a further US$2 million over the subsequent three years.
In addition to UGL’s current uranium portfolio of properties Mega Uranium and UGL are cooperating in the generation and acquisition of further uranium properties inside Mongolia. UGL’s extensive coal and gold/copper property holdings are not included in the Mega Uranium joint venture agreement.
Mr. Glenn Griesbach (P. Geo) is the qualified person for UGL’s Uranium projects under NI 43-101
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Mega’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Mega Uranium disclaims any intent or obligation to update these forward-looking statements and cautions investors from placing undue reliance on forward-looking statements. Mega does have an ongoing obligation to disclose material information as it becomes available.
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For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630