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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2010 News Releases

Mega Uranium Completes Dividend-In-Kind


April 27, 2010

TORONTO, Ontario – April 27, 2010 – Mega Uranium Ltd. (TSX: MGA) ("Mega") announces that the previously announced dividend-in-kind declared on its common shares (the "dividend") was paid effective April 26, 2010.  The dividend was paid in accordance with the terms of the sale of Mega's South American assets to U3O8 Corp. ("U3O8"), whereby Mega agreed to distribute to its shareholders the 30,564,858 common shares of U3O8 (the "U3O8 Shares") which Mega received as consideration for the sale of its assets. 

Under the dividend, Mega shareholders of record at the close of business on April 16, 2010 received approximately 0.124 U3O8 Shares for every 1 common share of Mega held (or approximately 1 U3O8 Share for every 8 common shares of Mega held); provided that no fractional shares (or cash in lieu thereof) were paid under the dividend and all fractional interests were rounded up or down, as applicable, to the nearest whole number of shares.

Mega has calculated the fair market value of the dividend to be $0.454 per U3O8 Share paid and has designated the dividend to be an "eligible dividend" for the purposes of the Income Tax Act (Canada) and corresponding provincial legislation. Shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors or contact their local office of the Canada Revenue Agency and, where applicable, the provincial taxation authorities.

Certificates evidencing the U3O8 shares paid under the dividend will be mailed by Equity Transfer & Trust Company, the registrar and transfer agent for Mega's common shares, to registered Canadian shareholders of Mega on or before April 28, 2010.

Depending upon their particular countries of residence, Mega shareholders who are non-residents (or deemed to be non-residents) of Canada will receive delivery of either the applicable number of U3O8 Shares paid to them under the dividend or their pro rata portion of the cash proceeds from the sales thereof in the open market by a registered securities dealer on their behalf, in each case net of applicable withholding taxes and selling fees.

The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with interests in 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 uranium resources are subject to a Queensland State Government policy that presently prohibits the mining of uranium.

For further information, please contact:

Investor Relations
Mega Uranium Ltd.
Richard Patricio
EVP Corporate Affairs
T: (416) 643-7630
info@megauranium.com
www.megauranium.com