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

Drilling Enhances the Potential of the Kintyre Rocks Project near Cameco-Mitsubishi's Kintyre Uranium Resource


November 23, 2010

Toronto, Canada, November 23, 2010 – Mega Uranium Ltd. (MGA -TSX) ("Mega") is pleased to announce that it has completed a 1831 meter, eight hole diamond core drilling program at its wholly owned Kintyre Rocks project in Western Australia.  Drilling was on a tenement adjoining the lease containing the Cameco-Mitsubishi joint venture's 79 million pounds U3O8 Kintyre resource, which is currently in prefeasibility.

The diamond drilling follows up on Mega's two previous reconnaissance drilling programs on the tenement which contributed to the identification of three buried uranium targets, all within a six kilometer radius of the Kintyre deposit. The drilling program (see figure below) has tested two of these targets, Area 1 and Gleneagles. Drilling of the third target, Southern Cross, was deferred to 2011 after problems were encountered in accessing the site.

Within Area 1 the prospective Cassandra Member stratigraphy has been intersected in three drill holes, covering a 700 meter cross section, with the Cassandra Member open to the south. The Cassandra Member is considered unique to the local Kintyre deposit area and fundamental to the discovery of further high grade uranium resources, as all the known Kintyre deposits are hosted within this Member. Mega's Area 1 intercepts are less than 3km south of Cameco-Mitsubishi's uranium deposit beneath a regionally extensive plain of thick sediment cover. Drill holes intersected up to 98 meters of the Cassandra stratigraphy beneath 32 to 77 meters of Permian glacial tillite sediments. These intercepts are highly encouraging as the Cassandra Member rarely outcrops at surface.

The units of the Cassandra Member include massive to interbedded carbonate and psammitic metasediments, partly magnetic banded iron formation (BIF), graphite, chlorite and sericite altered biotite schists and gneisses. In the Kintyre resource, high grade uranium mineralization occurs at the intersection of shear zones, metamorphic (S3) foliation and the brecciated and sheared contacts between brittle chert and calc silicate altered carbonate and psammite rich metasediments and the more ductile schists. Major dolomite, calcite and graphite rich units, which are considered unique to the Cassandra Member, define prospective areas and provide the means to identify blind uranium targets through a combination of magnetics, electromagnetics and gravity.

Mega's next phase of drilling in Area 1 will be based on the results of detailed structural and lithological logging of core. This information will be combined with geochemical vectors from all holes and a detailed interpretation of both ground electromagnetic and airborne magnetic surveys to optimize the selection of drill targets.

In the Gleneagles prospect, five diamond drill holes tested the two lobes of the gravity high and the resistive western margin of the combined gravity and magnetic anomalies. Intersections of ultramafics, previously unknown as significant lithologies in the Rudall Metamorphics, and denser than the majority of the Rudall Metamorphic suite, are the most likely cause of the gravity high. The resistive western margin of the gravity high proved to be silicified granite gneisses related to several northwest faults that intersect and divide the gravity anomalies. Magnetite rich layers within the granite gneiss are the source of the linear magnetics rather than the BIF unit that occurs within the Cassandra. As the Cassandra Member occurs stratigraphically above the granitic gneisses within the Rudall Metamorphic Group it is unlikely that the target stratigraphy has been preserved in this area, unless the stratigraphy is overturned. Further study of core will be undertaken, but at this stage no further drilling is envisaged.

Mega has identified two other priority drill targets within its Kintyre Rocks Project area - Southern Cross (planned for drilling in the recently completed program but delayed because of difficult access) and Wyoming Valley (a strong electromagnetic target under thick cover). Both targets occur within 6km of the Kintyre resource and are scheduled for drilling in early to mid 2011 along with further drilling in Area 1.

The 2010 core drilling program was supported by a co-funded grant of AUD$131,150 from the Western Australian Department of Mines and Petroleum under its 2010/11 Exploration Incentive Scheme.

Mega wishes to acknowledge the support of the Martu Native Title Landowners and the Western Desert Lands Aboriginal Corporation in approving the drilling program.

Mega also wishes to thank Cameco's team at the Kintyre Project for providing assistance during its exploration of the Kintyre Rocks property.

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 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

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 urafet, 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.