Madsen - 937,000 ounces M+I MEGA ANNOUNCES SIGNIFICANT INCREASE OF ITS GOLD RESOURCES AT THE NORTH MADSEN PROJECT IN RED LAKE, ONTARIOThunder Bay, OntarioSeptember 21, 2011 Shares Issued: 76,256,980Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the completion of an updated NI 43-101 compliant resource estimate for the North Madsen project.MEGA September 20, 2011North Madsen Mineral Resource EstimateClassification Tonnes Gold Grade (grams/tonne) Contained OuncesMeasured (M) 19,638,140 1.27 803,886Indicated (I) 3,838,000 1.08 133,281Sub Total (M+I) 23,476,140 1.24 937,167Inferred 11,486,000 1.03 379,026The estimates are in-situ and undiluted and figures are roundedResource model is using a 0.5 g/tonne cut off for Main Zone, Laverty and Buffalo West Extension zonesHighlights: Sensitivity analysis indicates robust economics, excellent potential to improve resource grades at lower gold prices and higher cut off grades; resources remain open at depth and along strike; and potential for further resource additions in nearby areas is excellent.Mr. Rogers Commented: "This update represents a more than 2,700% increase (in M & I) over our previously reported resource and demonstrates the size and strength of gold mineralization within the mineralized structures. We are pleased that the modeling has extended known zones, upgraded the resource quality and substantially increased the quantity of gold resources. The extension of known zones and discovery of new zones continues to demonstrate the near surface gold potential of the project and further supports my belief that open pit potential exists in Red Lake. Mega continues to be one of the most exciting advanced gold exploration companies in Canada with excellent potential to continue to add high quality gold ounces at our projects. Our success in growing gold resources over the past 18 months is depicted below in our resource graph (figure 1).”Figure 1 - Gold Resource GrowthMineral ResourcesMineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this press release were estimated using CIM Standards.Resource Calculation MethodologyThe construction of the geological and block model was a product of collaboration between Mega and Wardrop, A Tetra Tech Company (Tetra Tech). Mega personnel included Glen Kuntz P.Geo, Chief Operating Officer, Rory Ritchie Project Geologist and Seija Saarinen Geological Technician. All data in the resource evaluation were reviewed by Tetra Tech, with Mr. Todd McCracken P.Geo. assuming responsibility for the resource estimate upon which the statements reported herein are based.Mineral Resource CalculationThe geological model and corresponding sections and plans were generated by Mega personnel and then audited by Tetra Tech. Sections were selected at a tight spacing of 20 metres through the mineralized system and were based on all available geological and assay information. They show that major rock types and corresponding mineralized structures can be well correlated on section and plan. Tetra Tech reviewed selected drill core from the mineralized system, reviewed geological surface mapping, trenches and logging and sampling protocols used by project staff and agrees with the geological interpretation derived from the combination of the historical and current geological interpretation. Mega prepared > 0.25g/t assay composites tables in Gemcom Software Version 6.3 to allow inspection of the distribution of significant gold mineralized intervals.The QAQC protocols and corresponding sample preparation and shipment procedures for the North Madsen Project have been reviewed and approved by Tetra Tech.The resource estimate was based on geological data provided by representatives from Mega Precious Metals and the most recent drilling analytical analysis was provided by Accurassay Labs. This update incorporates drilling conducted from surface during the first 9 months of 2011 consisting of 53 holes for a total of 12,100 m.The determination technique of the mineral resource is based on the combination of geological modeling, geostatistics and conventional block modeling using the ordinary kriging method of grade interpolation for the Main and Laverty Dyke zones and Inverse Distance method for the Buffalo West Extension quartz tourmaline and disseminated zones.The block model resource estimate prepared by the Tetra Tech for the Main (includes Main, South and West Zone extension) mineralized zone was based on > 23,000 metres of diamond drilling in 127 diamond drill holes and 37 channel samples. The assay data was reviewed and a composite interval of 1.0 metres and a cap grade for the assays was 46.62 g/tonne was used. Statistical and Variogram analysis was performed to determine the “nugget effect” and a parent block size of (15X15X15 m - sub celled) was carried out.The search ellipse parameters are the following:Search ellipse parameters Distance• First Axis (strike direction): 47 M• Second Axis (plunge direction): 13 M• Third Axis (dip direction): 33 MThe estimation method involved a three pass search method, with each pass increasing the search parameters by a factor of two followed by a factor of three and is consistent with standard block model methodology for measured, indicated and inferred mineral resources. A minimum of four samples and maximum of twenty samples were selected as requirements for populating each block.The block model resource estimate prepared by the Tetra Tech for the Laverty Dyke mineralized zone was based on .>6176 metres of diamond drilling in 61 diamond drill holes carried out between. The assay data was reviewed and a composite interval of 1.0 metres and a cap grade for the assays was 12.67 g/tonne in the granodiorite was used. Statistical and Variogram analysis was performed to determine the “nugget effect” and a parent block size of (15X15X15 m - sub celled) was carried out.The search ellipse parameters are the following:Search ellipse parameters Distance• First Axis (strike direction): 35 M• Second Axis (plunge direction): 12 M• Third Axis (dip direction): 20 MThe estimation method involved a three pass search method, with each pass increasing the search parameters by a factor of two followed by a factor of three and is consistent with standard block model methodology for measured, indicated and inferred mineral resources. A minimum of four samples and maximum of ten samples were selected as requirements for populating each block.The block model resource estimate prepared by the Tetra Tech for the Buffalo West Extension mineralized zone was based on >8100 metres of diamond drilling in 32 diamond drill holes .The assay data was reviewed and a composite interval of 1.0 metres and a cap grade for the disseminated zone was 12.68 g/tonne and 7.82 g/tonne for the quartz/tourmaline zones were used. Statistical and Variogram analysis was performed to determine the “nugget effect” and a parent block size of (15X15X15 m - sub celled) was carried out.The Buffalo Zone block model used an inverse distance method for grade estimation and the parameters were as follows: Disseminated zone had a search rotation of 0 degrees Quartz tourmaline zone had a search rotation of -15 degreesThe estimation method involved a three pass search method, with each pass increasing the search parameters by a factor of two followed by a factor of four and is consistent with standard block model methodology for inferred mineral resources. A minimum of four samples and maximum of twenty samples were selected as requirements for populating each block.For the Main and Laverty Dyke Zones, the variogram results for each block model are generally consistent with the geological model used in the ordinary kriged estimation method having two axes that approximate the observed geological and mineralized trend of the mineralized structures and support the observed plunge of the second axis in the geological model.Each of the block models was constrained utilizing surfaces for the following: The overburden boundary The mineralized zones and geological model The claim boundary Qualified Person Comments/Quality Control ProceduresThis press release has been prepared and revised by Glen Kunz P. Geo., Chief Operating Officer (COO) and Mr. Todd McCracken P.Geo. of Tetra Tech, both of whom are Qualified Persons under the NI 43-101 guidelines. The resource estimate has been prepared in compliance with National Instrument 43-101 and form NI 43-101F1, which requires that the estimate be prepared in accordance with the "CIM Definition Standards on Mineral Resources and Mineral Reserves as prepared by the CIM Standing Committee on Reserve Definitions and as adopted by CIM Council, December 11, 2005.Glen Kuntz, Chief Operating Officer (COO), is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101. Glen was Sr. Resource Geologist at the Campbell Gold Mine and Global Spatial Data Systems Coordinator for Placer Dome, Vice President Enterprise Mining Solutions for Runge Ltd., and most recently, Vice President Global Operations for GMC Global and President North America Operations for GMC Global.Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega’s common shares trade on the TSX Venture Exchange under the symbol MGP.For further information and presentation material, please review the Mega website at
www.megapmi.comFor further information, please contact:Mega Precious Metals Inc.Jim Rogers, President and Chief Executive OfficerO: 807-766-3380TF: 877-592-3380info@megapmi.com