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MEGA ANNOUNCES SIGNIFICANT INCREASE OF ITS GOLD RE

[OilGold]

MEGA ANNOUNCES SIGNIFICANT INCREASE OF ITS GOLD RESOURCES AT THE NORTH MADSEN PROJECT IN RED LAKE, ONTARIO
Thunder Bay, Ontario
September 21, 2011  Shares Issued: 76,256,980
Mega 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, 2011
North Madsen Mineral Resource Estimate
Classification
Tonnes
Gold Grade (grams/tonne)
Contained Ounces
Measured (M)
19,638,140
1.27
803,886
Indicated (I)
3,838,000
1.08
133,281
Sub Total (M+I)
23,476,140
1.24
937,167
Inferred
11,486,000
1.03
379,026
The estimates are in-situ and undiluted and figures are rounded
Resource model is using a 0.5 g/tonne cut off for Main Zone, Laverty and Buffalo West Extension zones
Highlights:
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 Growth