Nunatsiavut Assembly Lifts Uranium Moratorium In Labrador

March 12, 2012 / www.megauranium.com / Article Link

March 12, 2012

Toronto, Ontario, March 12, 2012- Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce that the Nunatsiavut Government of Newfoundland and Labrador hasenacted the Environmental Protection Act as well as an amendment to theLabrador Inuit Lands Act which lifts the moratorium on the working, production,mining and development of uranium on Labrador Inuit Lands. The Nunatsiavut Government is aregional Inuit government within the Province of Newfoundland & Labradorand the announcement follows on from a unanimous decision, made by theNunatsiavut Assembly in December 2011, to lift the moratorium.

Thelifting of the ban, which had been in place since early 2008, removes the uncertaintywhich had impeded exploration and development of uranium projects in the area.

Megais now planning to complete follow up drilling at the Aillik East and BruceRiver Properties in 2012. Mega and its JV partners, hold title to 29,475 ha ofprospective uranium mineral licences in the Central Mineral Belt of Labrador,of which 17,562 ha (60%) are within Labrador Inuit Lands, previously affectedby the moratorium.

On the Aillik East property, Mega discovered a new mineralized zonethrough drilling in 2011. The most encouraging results were on the NB targetwhere drilling intersected 10 m of 0.048% U3O8, (from 8 mto 18 m with a hole dip of -45 ?) in hole AE-11-10. This mineralized zone issituated within a larger alteration zone of elevated sodium and iron (ashematite and magnetite) and will be the focus of drilling in 2012. Alterationoccurs both in the matrix of hydrothermal breccia zones and as pervasivereplacement. This type of hydrothermalalteration is characteristic of other uranium mineralized zones in the CentralMineral Belt of Labrador, in particular Paladin EnergyLtd.'s Michelin deposit (43-101 Technical Report for Aurora Energy ResourcesInc., Aug 28th, 2008). The presence of uranium mineralization at the NB showing and associatedfavourable sodium and iron alteration demonstrates the potential of the AillikEast property to host a deposit.

MichaelDownes Ph.D., P.Geo., Vice President North America and Qualified Person forMega, has reviewed the technical content of this news release.

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with afocus on uranium properties in Australia,Canada and Cameroon. Furtherinformation on Mega can be found on the company's website atwww.megauranium.com. Mega Uranium's BenLomond and Maureen properties in Queensland,Australia are subject to a state policy which presently prohibits the mining ofuranium.

For further information, please contact:

Investor Relations Mega UraniumLtd. Richard Patricio EVP,Corporate Affairs T: (416) 643-7630 info@megauranium.comwww.megauranium.com

NoteRegarding Forward-Looking information

Certain informationcontained in this press release may constitute "forward-looking information", whichis information regarding possible events, conditions or results of operationsthat is based upon assumptions about future economic conditions and courses ofaction. All information other than matters of historical fact may beforward-looking information. In some cases, forward-looking information can beidentified 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" andsimilar words or phrases (including negative variations) suggesting futureoutcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limitedto, statements about our plans regarding future acquisitions and propertydevelopment, our expectations regarding the uranium market, global growth andthe use of nuclear power, our drill results, commodity prices and coreintersection lengths, in that they constitute estimates, based on certainassumptions of mineralization that may be encountered if a deposit were to bemined.

By its nature,forward-looking information involves known and unknown risks, uncertainties andother factors which may cause our actual results, performance or achievements,or industry results, to differ materially from those expressed or implied bysuch forward-looking information. Some of the risks and other factors thatcould cause actual results to differ materially from those expressed in theforward-looking information contained in this release include, but are notlimited to: risks and uncertainties relating to the interpretation of drillresults, the geology, grade and continuity of mineral deposits and conclusionsof economic evaluations; results of initial feasibility, pre-feasibility andfeasibility studies, and the possibility that future exploration, developmentor mining results will not be consistent with the Company's expectations; risksrelating to possible variations in reserves, grade, planned mining dilution andore loss, or recovery rates and changes in project parameters as plans continueto be refined; mining and development risks, including risks related toaccidents, equipment breakdowns, labour disputes (including work stoppages andstrikes) or other unanticipated difficulties with or interruptions inexploration and development; the potential for delays in exploration ordevelopment activities or the completion of feasibility studies; risks relatedto the inherent uncertainty of production and cost estimates and the potentialfor unexpected costs and expenses; risks related to commodity price and foreignexchange rate fluctuations; the uncertainty of profitability based upon thecyclical nature of the industry in which the Company operates; risks related tofailure to obtain adequate financing on a timely basis and on acceptable termsor delays in obtaining governmental approvals or in the completion ofdevelopment or construction activities; risks related to environmentalregulation and liability; political and regulatory risks associated with miningand exploration; and other risks and uncertainties related to the Company'sprospects, properties and business strategy.

Although we haveattempted to identify important factors that could cause actual results orevents to differ materially from those described in the forward-lookinginformation, readers are cautioned that this list is not exhaustive and theremay be other factors that we have not identified. Readers are cautioned not to place unduereliance on forward-looking information contained in this release. Forward-looking information is based upon ourbeliefs, estimates and opinions as at the date of this release, which webelieve are reasonable, but no assurance can be given that these will prove tobe correct. Furthermore, we undertake noobligation to update or revise forward-looking information if these beliefs,estimates and opinions or other circumstances should change, except asotherwise required by applicable law.

All forward-lookinginformation contained in this release is expressly qualified by this cautionarynote.

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