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 Ltd. Releases Unaudited Results For The Three And Six Months Ended March 31, 2010


May 14, 2010

TORONTO, Ontario (May 14, 2010) - Mega Uranium Ltd. ("Mega") (TSX: "MGA") today announces its unaudited results for the three and six months ended March 31, 2010.

SUMMARY FINANCIAL RESULTS

As at March 31, 2010, Mega had cash, cash equivalents and marketable securities totaling $60.2 million, as compared to $22.3 million at the end of September 30, 2009, an increase of 170%. The increase is primarily attributable to the proceeds from the public offering which closed during the prior quarter.

As at March 31, 2010, the Company had mineral properties and related expenditures of $290.5 million, as compared to $295 million as at September 30, 2009. The decrease is due to write downs of mineral properties of $9.2 million, utilization of $5.4 million of funds received under the JAURD Agreement, which are recorded as a reduction from mineral properties, offset by exploration expenditures of $10.2 million in Australia, Cameroon and Canada.

Summary results for the three months ended March 31, 2010, as compared to the three months ended March 31, 2009:

  • Financial loss from financial and trading activities for the quarter was $0.4 million, most of which relates to unrealized losses on  investments in public companies, as compared to a financial gain of $1.8 million last year.
  • Total operating, general & administrative expenses were $3.5 million in the quarter as compared to $2.4 million in the prior year’s quarter. The increase was primarily due to increases in consulting and professional advisory service fees.
  • Net loss in the quarter was $14.5 million ($0.06 per common share), as compared to net income of $2.2 million in the previous year’s quarter ($0.01 per common share).

Summary results for the six months ended March 31, 2010 as compared to the six months ended March 31, 2009:

  • Financial loss was $0.7 million in the current period as compared to a financial loss of $0.4 million for the six months ended March 31, 2009. The financial loss in the current year was due primarily to realized losses on disposal of investments in public companies.
  • Total operating, general and administrative expenses were $6.3 million in the current period, as compared to $5.6 million for the six months ended March 31, 2009. The increase was primarily due to increases in consulting and professional advisory service fees.
  • Net loss in the six month period was $15.6 million ($0.06 per common share) as compared to a net loss of $8.1 million ($0.04 per common share) for the six months ended March 31, 2009.

Project Activity

In the first three months of 2010, Mega continued its feasibility studies of the Lake Maitland project in Western Australia and progressed exploration of priority projects in Argentina, Canada and Cameroon. In Cameroon drilling programs were conducted in the Lolodorf, Kitongo and Salaki prospects- results are awaited.

During the quarter, Mega provided an update on its exploration in Canada (news release of January 12 2010) and reported that it had entered into an agreement whereby U3O8 Corp. would acquire all of Mega’s South American uranium properties and $4 million in cash in exchange for 30.56 million common shares of U3O8 Corp (news release of February 17 2010). This transaction was completed in April 2010.

Stewart Taylor, Mega’s President and Qualified Person under NI 43-101, has reviewed the technical information in 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, 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 properties in Queensland, Australia are subject to a state policy which presently prohibits the mining of uranium.

For further information, please contact:

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

Note Regarding Forward-Looking information

Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company’s prospects, properties and business strategy.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

All forward-looking information contained in this release is expressly qualified by this cautionary note.

Note Regarding Disclosure for Mineral Projects

This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.