THUNDER BAY, Ontario -- (Business Wire)

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to provide an exploration update from the ongoing activities at its wholly-owned Monument Bay Project. These drill holes are part of an ongoing exploration program within the Monument Bay Camp which commenced June 2011, ensuing to the last resource estimate cut-off date of May 2011, and will continue throughout 2012.

This drilling program is aimed at expanding the current open pit footprint of the mineralization trend both along strike and confirming the higher-grade "shoots" within these open pit potential areas of the deposit.

Drilling continues to successfully extended the broad Burn Zone mineralization by > 200 metres along strike and > 200 metres in depth; the grade and thickness along strike continues to be consistent with previously released results and the grade is slightly improving at depth where it remains wide open for expansion.

Highlights:

• Combination of narrow high-grade zones and wider low-grade gold mineralization continues to indicate a very broad and extensive gold system making up the Monument Bay Camp
• > 90% of the current resource is large, well defined, broad high grade mineralized zones that are predictable along strike and dip with each zone containing a well defined high grade plunging core.
  • Strike lengths range from 450 to 2425 m
  • Dip lengths rage from 212 to 925 m
  • Widths range from 1.9-15.9 m
• The gold mineralization has been confirmed over a strike length of > 6.5 km - open along strike.
• Results indicate that gold mineralization is associated with IP, magnetic, soil geochemical anomalies coupled with some previous diamond drilling - an additional 30 new targets have been identified within a 3.5 km x 1.5 km area.
• Visible gold continues to be noted in multiple drill holes throughout 2011 drill program
• Burn Zone continues to expand with:
  • Drill hole TL 11 – 427 intersects 6.2 g/t gold over 10.0 metres which includes 28.8 g/t gold over 1.0 m
  • Drill hole TL 11 – 429 intersects 8.8 g/t gold over 3.0 metres which includes 25.0 g/t gold over 1.0 m
  • Drill hole TL 11 – 430 intersects two broad mineralized zones:
    • 1.10 g/t gold over 20 m
    • 1.21 g/t gold over 20.5 m

Mr. Jim Rogers commented, “Drilling results from Monument Bay continue to provide consistently strong results. The very high hit rate of the burn zone is an excellent indication of the persistent nature of the gold mineralization throughout the Monument Bay Gold Camp for these results continue to expand the known resource both in size, quality and demonstrate the open pit potential of the mineralized corridor at our Monument Bay Project in a relatively short period of time.

The continuity of this gold deposit is well established and we are very confident that we will continue to achieve strong results as we further delineate the Monument Bay Camp. Our geological team is currently planning the next stage of drilling of approximately 50,000 m which is aimed to continue delineating mineral resources to form the basis of a mining reserve and a positive preliminary economic study in 2012”.

Further 9 more holes of the 16,546 metre summer/fall drill program are tabled below.

The Monument Bay deposit is being evaluated in an upcoming NI 43-101 update that will be completed for release in Q1 of 2012 and will be incorporating all additional exploration resources discovered post the May 2011 cut-off date.

Mega’s 2011 exploration success has discovered and converted targets into a resource estimate in less than 6 months. Over the past 10 Months Mega has completed the following:

• Executed 26,482 metres of definition and step out drilling
• Converted > 592,000 ounces into Measured +Indicated categories
• Discovered an additional > 989,000 Inferred Ounces
• Discovery Ounce Cost = > $ 6/Ounce
• Identified > 30 new discoveries that are not in current resource estimate
• Completed initial work for heritage and environmental base line studies
• Upgraded camp facilities and installed infrastructure to handle multi phased exploration programs for 2012
• Mobilized heavy equipment in to camp to accelerate exploration development

The Monument Bay deposit is open in all directions and Mega management firmly believes that their Monument Bay Camp is part of a much larger gold system that encompasses the Twin Lakes/Stull Lake gold bearing structures.

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.

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.com

Forward-looking Statements

Certain statements in this press release relating to the Company’s exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation.The Company does not intend, and does not assume any obligation, to update these forward-looking statements.These forward-looking statements represent management’s best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets.Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Mega Precious Metal’s filings which are posted on sedar at www.sedar.com.

There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@megapmi.com

Source: Mega Precious Metals Inc.