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. Announces Closing Of Flow-Through Financing


October 8, 2010

Toronto, Canada, October 8, 2010 – Mega Uranium Ltd. ("Mega") (MGA:TSX) announces today that it has closed its previously announced flow-through private placement (see press release dated September 17, 2010). Mega raised aggregate gross proceeds of $3,250,000 from the sale of a total of 5,000,000 flow-through units (the "Units"), at a price of $0.65 per Unit (the "Financing"). 

Each Unit consisted of one "flow-through" common share and one-half of one non-flow-though common share purchase warrant (each whole warrant, a "Warrant") of Mega. Each Warrant entitles the holder to purchase one additional common share of Mega (which is a non-flow-through share), at a price of $0.75, at any time until expiry on April 8, 2012.

Mega paid an aggregate of $227,500 in finders’ fees and issued an aggregate of 400,000 compensation warrants to third parties who assisted the company in arranging for the sale of the Units. Each compensation warrant entitles the holder to acquire one common share and one-half of one common share purchase warrant of Mega, at a price of $0.65, until expiry on April 8, 2012. Each whole common share purchase warrant will be exercisable for one common share of Mega, at a price of $0.75 per share, until expiry on April 8, 2012.  

An aggregate of 750,000 Units were purchased by insiders of Mega.

The proceeds from the Financing will be used for exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act(Canada)) and will be renounced for the 2010 taxation year.

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
Executive 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.

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. 

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 unlawfu