Mega Uranium Ltd. and Cameco Australia Pty Ltd Enter Formal Binding Farm-in and JV Agreement

Mega Uranium Ltd. (TSX:MGA) entered into a non-binding farm-in and joint venture terms sheet with Cameco Australia Pty Ltd, a wholly owned subsidiary of Cameco Corporation (TSX:CCO,NYSE:CCJ). in respect of certain granted tenements and tenement applications that comprise Mega’s Kintyre Rocks project, located in the East Pilbara region of Western Australia. The Project, owned by Boxcut Mining Pty Ltd, a wholly owned subsidiary of Mega, immediately surrounds the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi Development Pty Ltd.

Pursuant to the Definitive Agreement:

• Cameco may earn an initial 51% interest in the Project by sole funding expenditure for exploration activities of AUD$2 million within 24 months from the date of the Definitive Agreement (the “Stage 1 Farm In”).

• Upon Cameco earning a 51% interest in the Project, Boxcut and Cameco will form a joint venture for the purpose of maintaining and exploring, and, if justified, the development and mining of, the Project.

• Cameco will be the operator of the Project during the Stage 1 Farm In period and the manager of the joint venture after the joint venture formation date.

• Cameco may elect to earn an additional 19% interest in the Project (for an aggregate total interest of 70%) by sole funding expenditure for exploration activities of AUD$4 million (inclusive of the AUD$2 million expenditure to earn a 51% interest in the Project) within four (4) years from the date of the Definitive Agreement.

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