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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2008 News Releases
Mega Uranium Ltd. Releases Unaudited Results For The Three Months Ended December 31, 2007
February 13, 2008
TORONTO, Ontario (February 13, 2008) – Mega Uranium Ltd. (“Mega”) (TSX: “MGA”) today announces its unaudited results for the three months ended December 31, 2007.
Summary Financial Results
As at December 31, 2007, Mega had cash, cash equivalents and marketable securities totaling $85.5 million as compared to $114.0 million at the end of September 30, 2007. As at December 31, 2007, the Company had mineral properties and related expenditures of $484.1 million as compared to $466.9 million as at September 30, 2007. The increase is primarily due to Mega’s cash expenditures for exploration activities on its mineral properties.
Results for the three months ended December 31, 2007 as compared to the three months ended December 31, 2006:
- Revenue decreased to a net reversal of $17,000 as compared to revenue of $6,809,000 for the three months ended December 31, 2006. The decrease was due primarily to unrealized losses on investments in public companies.
- Total operating and general expenses were $2,106,000 as compared to $2,012,000 for the three months ended December 31, 2007.
- Net loss in the quarter was $1,903,000 ($0.01 per common share) as compared to a net loss of $875,000 ($0.01 per common share) for the three months ended December 31, 2006.
Throughout the quarter, Mega provided numerous updates on its exploration projects. Highlights included:
- Mega engaged an Independent Qualified Person to establish resources that are NI43-101 compliant for the Maureen uranium-molybdenum resource in Queensland, based on historical data and the new assay results from the drilling programmes in 2006 and 2007.
- Encouraging results were obtained in drilling of the Maureen deposit, including 19 metres @ 0.21% Mo from 162 metres hole depth, 22 metres @ 0.34% Mo from 99 metres and 4 metres @ 0.28% Mo from 129 metres.
o In the Oasis Project, a detailed airborne magnetic-radiometric survey delineated a number of anomalies which will be investigated in 2008.
- In the Tabletop Joint Venture, an airborne magnetic-radiometric survey revealed a number of anomalies which have been selected for ground follow up in April 2008.
- In the Kintyre Rocks Project, Mega announced that the planned drilling of targets was delayed pending the approval of a vegetation and a track clearing permit by the Western Australia Department of Industry and Resources. Drilling has been postponed until late March/early April, 2008.
- In the Gunbarrel Basin of Western Australia, Mega’s Joint Venture partner, ASX-listed Aura Energy, announced results from an airborne radiometric survey indicating prominent palaeochannels in the Kirgella Rocks and Neale Projects. A drilling programme has been designed to test these properties.
- In South Australia, further drilling was undertaken to follow up on encouraging reconnaissance drilling results in the Cronje Dam Project. Results included 3 metres @ 507ppm U3O8 at 105 metres depth in the Kinloch Tank area, 4 metres @ 236ppm U3O8 at 98 metres depth in the Olary Creek area and 2 metres @ 400ppm U3O8 at 104 metres depth in the Gairloch Dam area.
- A drilling programme commenced in the Corunna North tenement, in which Mega can earn up to an 80% interest in the uranium content from the ASX-listed InterMet Resources.
- Mega announced that it had entered into an agreement with CanAlaska Uranium Ltd. in respect of CanAlaska’s 100% owned Poplar property, which is located on the northern rim of the Athabasca Basin of northern Saskatchewan.
- Mega’s JV partner Cash Minerals intersected visible uranium and copper mineralization close to the surface at the Igor property, Wernecke Uranium District, Yukon. Drilling results were reported on October 24, 2007.
- Nine new zones of surface uranium mineralization were delineated in the Aillik East property in the eastern part of the Central Mineral Belt of Labrador.
- Mega completed its Phase 3 drilling programme on the Mustang Lake property in which Mega holds a 50% interest and is the operator. Analytical results are awaited.
- Applications were lodged for three exploration permits in San Luis Province in Argentina.
- Mega increased its property holdings in its Patagonia Project in Argentina through a farm-in agreement with two private vendors in the Laguna Salada area. Encouraging trench results from Laguna Salada were reported on December 5, 2007.
- Field checking of areas of interest continued in Bolivia where Mega is earning 75% of the uranium-molybdenum content of exploration concessions held by Intrepid Mines Ltd. In addition, Mega/Intrepid entered into an option agreement with a private vendor in respect to the Ana Lis claim over a portion of the Manomo carbonatite.
- In Colombia, reconnaissance geological mapping, rock/stream sediment sampling and ground radiometric surveys were undertaken in the Betulia concession in the Zapatoca Uranium District of Santander Province.
- Airborne magnetic-radiometric surveys of the Kitongo, Lolodorf and Teubang project areas highlighted numerous significant uranium radiometric anomalies in a number of different geological settings.
Stewart Taylor, Mega’s President and Qualified Person under NI43-101, is responsible for 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, Argentina, Bolivia, Canada, Colombia and Mongolia. 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, Maureen and Lake Maitland properties are subject to state policies which presently prohibit the mining of uranium in Queensland and Western Australia.
For further information, please contact:
Mega Uranium Ltd.
VP Corporate and Legal Affairs
T: (416) 643-7630