Mega Uranium Ltd. releases unaudited results for the three and nine months ended June 30, 2011

As at June 30, 2011, Mega had cash, cash equivalents and marketable securities totaling $31.1 million, as compared to $49.9 million at the end of September 30, 2010, a decrease of 38%. The decrease is primarily attributable to the Lake Maitland feasibility costs and other exploration expenditures incurred during the current period.

As at June 30, 2011, the Company had mineral properties and related expenditures of $265.9 million, as compared to $251.7 million as at September 30, 2010. The increase reflects expenditures on our mineral properties of $18.9 million, offset by write offs of mineral properties of $4.6 million.

Summary results for the three months ended June 30, 2011, as compared to the three months ended June 30, 2010:

• Financial loss from financial and trading activities for the quarter was $5.6 million, most of which relates to unrealized losses on investments in public companies and marketable securities, as compared to a financial loss of $1.3 million in the previous year quarter.
• Total operating, general & administrative expenses were $1.5 million in the quarter as compared to $2.2 million in the prior year’s quarter, primarily due to a decrease in consulting and professional advisory service fees.
• Net and comprehensive loss from continuing operations in the quarter was $7.9 million ($0.03 per common share), as compared to net and comprehensive loss of $6.1 million in the previous year’s quarter ($0.02 per common share).
• Net and comprehensive loss from discontinued operations in the quarter was $Nil ($0.00 per common share), as compared to a net and comprehensive income of $0.1 million in the previous year’s quarter ($0.00 per common share).
• Summary results for the nine months ended June 30, 2011 as compared to the nine months ended June 30, 2010:
• Financial income was $0.4 million in the current period as compared to a financial loss of $1.9 million for the nine months ended June 30, 2010. The financial income in the current period was due primarily to interest income, realized gain on disposal of investments in public companies and marketable securities offset by unrealized losses on investments in public companies and marketable securities.
• Total operating, general and administrative expenses were $5.9 million in the current period, as compared to $8.2 million for the nine months ended June 30, 2010, primarily due to a decrease in consulting, professional advisory service fees and travel and promotion expenditures.
• Net and comprehensive loss from continuing operations for the nine month period ended June 30, 2011 was $11.1 million ($0.04 per common share) as compared to a net and comprehensive loss of $15.1 million ($0.06 per common share) for the nine months ended June 30, 2010.
• Net and comprehensive loss from discontinued operations for the in the nine month period ended June 30, 2011 was $Nil ($0.00 per common share), as compared to a net and comprehensive loss of $6.4 million ($0.03 per common share) for the nine months ended June 30, 2010.

Project Activity

During the first half of 2011, Mega continued its feasibility studies of the Lake Maitland project in Western Australia and undertook a program of exploration drilling to test for additional uranium resources to the south and southwest of the delineated resource. As the results of a disequilibrium study and density determinations indicated potential to increase the tonnes and grade of the known resource through additional diamond drilling, the decision was taken to defer the completion of the feasibility study pending receipt and review of results from a drilling program scheduled to commence in late September. Further details can be found in Mega’s news release of June 21, 2011.

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.