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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2007 News Releases

Mega Uranium Ltd. Releases Restated Results For The Quarters Ended March 31, June 30 and December 31, 2006 and March 31, 2007 and for the Year Ended September 30, 2006


June 27, 2007

Taxation Accounting Change Increases Accounting Values of Acquired Properties; No Effect On Cash Flows

TORONTO, Ontario (June 28, 2007) – Mega Uranium Ltd. (“Mega”) (TSX: “MGA”)
today announced that it has restated its unaudited financial results for the quarters ended March 31, June 30 and December 31, 2006 and March 31, 2007 and its audited financial results for the year ended September 30, 2006 (and related management’s discussion and analysis).

The restatement arose from an error in the tax related accounting for certain of Mega’s acquisitions. The restatement followed a review of certain of Mega’s historical statements by its new auditors in connection with a pending acquisition. The review identified that the Company had not been recording a future tax liability in cases where the accounting value attributed to properties owned by companies which Mega acquired exceeded the tax basis of those properties.

The primary effects of the restatement are to increase the accounting value of various properties acquired and to record an equivalent future tax liability. As well, since some of the acquisitions were of foreign entities, there are unrealized foreign exchange gains or losses in some periods where a change in the exchange rate caused a revaluation, in Canadian dollars, of the future tax liability. Cash is unaffected. The changes are summarized as follows:

 
Quarter Ended (Thousands)
Year Ended (Thousands)
 
March 31, 2006
June 30, 2006
September 30, 2006
 
Previously Reported
Change
Restated
Previously Reported
Change
Restated
Previously Reported
Change
Restated
Balance Sheet
 
 
 
 
 
 
 
 
 
Mineral Properties and Related Expenditures
17,566
1,888
19,454
43,071
12,371
55,442
44,386
12,371
56,757
Future Income Tax Liability
0
1,888
1,888
0
12,371
12,371
0
12,371
12,371

 
Quarter Ended (Thousands)
 
December 31, 2006
March 31, 2007
 
Previously Reported
Change
Restated
Previously Reported
Change
Restated
Balance Sheet
 
 
 
 
 
 
Mineral Properties and Related Expenditures
139,198
51,359
190,557
195,800
 
270,958
Income Taxes Payable
0
 
 
602
257
859
Future Tax Asset
1,823
(1,823)
0
0
0
0
Future Tax Liability
0
54,855
54,855
3,071
80,819
83,890
Deficit
17,951
5,319
23,270
19,249
5,918
25,167
 
 
 
 
 
 
Statement of Operations
 
 
 
 
 
 
Foreign Exchange Loss (Gain)
(517)
3,496
2,979
(69)
800
731
Recovery of (Provision For) Income Taxes
1,823
(1,823)
0
(602)
201
(401)
Net Income (Loss) For the Period
4,444
(5,319)
(875)
(1,298)
(599)
(1,897)
Earnings (Loss) Per Share
.04
(.05)
(.01)
(.01)
0

(.01)

Amended financial statements and related management’s discussion and analysis for the affected periods have been filed on SEDAR.

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Colombia, 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.

For further information:
Larry Goldberg
Chief Financial Officer

The Exchange Tower
130 King Street West, Suite 2500
Toronto, Canada M5X 1A9
(416) 860-3896
www.megauranium.com