Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
M5B 1M4

Phone 416.643.7630
Fax 416.941.1090
 

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2006 News Releases

Mega Uraniun Ltd. Releases Results for the Year Ended Septemeber 30, 2006


December 21, 2006

Year sees large investment in uranium properties;
Financings provide cash for further expansion and exploration.

TORONTO, Ontario (December 21, 2006) – Mega Uranium Ltd. (“Mega”) (TSX: “MGA”) today announced its audited results for the year ended September 30, 2006. As at September 30, 2006, Mega had cash, cash equivalents and marketable securities totaling $41,295,667 as compared to $11,501,992 at the end of the previous year. The increase in the Company’s cash position was due primarily to a private placement financing that closed in April 2006 which raised gross proceeds of $31.5 million, and the exercise of stock options and warrants which provided an additional $6.3 million to the Company.

In addition, immediately subsequent to the year end, the Company completed an $11.875 million private placement of flow through shares to be used to fund Canadian exploration.

During the year Mega acquired a number of companies (both public and private) as well as direct interests in uranium properties in Australia, Argentina and Bolivia. As a result, Mega’s mineral properties and related expenditures rose from $4,725,662 at the end of the prior year to $44,385,858 at September 30, 2006.

After the year end, Mega completed the previously announced acquisition of Redport Limited, a public uranium mining company located in Australia. Also after the year end, the Company announced its intention to acquire all of the outstanding securities of Twenty-Seven Capital Corp. (TSXV:”TSC”) a uranium exploration company with extensive uranium prospective land holdings in the Yukon Territory, in a share exchange transaction. That transaction is anticipated to be finalized in the first calendar quarter of 2007.

During the year, Mega had revenue of $964,032, consisting primarily of $1,078,074 of interest income, slightly offset by unrealized losses on investments. This compares to $118,993 of interest income in the prior year.

Expenses in the year totaled $12,400,686 as compared to $1,983,887 during the previous year. The bulk of the increase was due to stock based compensation expense which totaled $8,238,011 in the current year versus $864,651 last year. Operating, general and administrative expenses grew from $1,076,409 in fiscal 2005 to $3,829,255 in the current year. The increase has been due to the greatly increased activities of the Company throughout the world.

Net loss for year ended September 30, 2006 was $10,669,628 ($0.12 per share) as compared to a net of $1,864,894 ($0.04 per share) for the year ended September 30, 2005.

Mr. Inwentash, Chairman and CEO, stated, “Fiscal 2006 was a very exciting and active year for Mega Uranium. We began executing on our plan of aggressively acquiring high quality uranium resources throughout the world.” He continued, “We are well funded and therefore well positioned to continue this level of activity into 2007, beginning with our announced acquisition of Twenty-Seven Capital.”

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Columbia, Bolivia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.

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.

THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information:

Richard Patricio
Vice President, Legal and Corporate Affairs
The Exchange Tower
130 King Street West, Suite 2500
Toronto, Canada M5X 1A9
(416) 643-7630
www.megauranium.com