Mega Precious Metals Inc MPRXF

Goldcorp High Grade Zone Trouble

[mpsl45]

Red Lake gold production in the second quarter continued to be affected by the previously-announced operating delays in the High Grade Zone due to the need for rock de-stressing cuts at the 41 and 45 levels. The impact of continued seismic activity has increased over the last several weeks, and in connection with the Company's continued commitment to the highest possible safety standards has slowed the advance of de-stressing efforts. The first de-stress cut at the 41 level has been completed and the second at the 45 level is expected to be completed later in the third quarter. This is expected to deliver improved operating performance in the High Grade Zone over the second half of 2012. Inconsistent mineralization in the Footwall Zone encountered in the first quarter has also continued into the second quarter while production in the Campbell Zone improved slightly compared to the first quarter. This has resulted in a change in forecast gold production at Red Lake to between 460,000 and 510,000 ounces in 2012 compared to previous guidance of 650,000 ounces. Over the balance of 2012, the Company will evaluate the impact of these conditions on Red Lake's long-term production profile.