Development and Production Becoming a Reality

DAVID LEDGER, Bligh Capital (04/24/2009)
"Mega Uranium has taken a huge stride forward in becoming a prominent uranium producer in Australia. Having built a portfolio of uranium assets globally in the past 5 years mainly through the acquisition of companies in Australia and Canada, the company is now set to take advantage of recent regulatory changes that will see them move towards development of their Lake Maitland property in Western Australia.

Mega holds interests in around 20,000 sq kms of ground in Queensland, South Australia, Northern Territory and Western Australia. The ground contains a total of 47.1mln lbs of U3O8, the bulk of which is contained in Lake Maitland (23.7Mlbs) and the two Queensland deposits Ben Lomond (10.7Mlbs) and Maureen (6.3Mlbs). Prefeasibility and feasibility studies are presently underway on both Lake Maitland and Ben Lomond with a view to bringing them into production in 2011/13.

Mega has entered into a MOU to sell 35% of its Lake Maitland project in Western Australia for US$49mln to Japan Australia Uranium Resource Development Co. Ltd (JAURD) and Itochu Corporation. . .

Mega Uranium is now at the point where they are set to move from explorer to developer. This step marks a very important development of the uranium mining sector in Western Australia and potentially Queensland.

The intention to fund the Lake Maitland development from the JAURD US$49mln speaks volumes for the management of the group and the robust nature of the project.

As a well-funded player in the sector in Australia, and with a history of growth through acquisitions of companies and resources, Mega looks set to be an active participant in any rationalization amongst junior explorers.

We would contend that Mega represents one of the best pure uranium plays in the market that has a total focus on the development and mining of uranium assets. As the project at Lake Maitland moves through 2009 we would continue to look for more positive delineation of the mineable ore body and further major progression through the regulatory and technical aspects of project design and construction."

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