Mega Establishes Project Participation Framework for Monument Bay

Mega Precious Metals Inc. (MGP:TSX-V) ('Mega? or the
'Corporation') is pleased to announce the establishment of a Project
Participation Framework that will be used to identify opportunities
whereby stakeholders, including local communities and government, can
participate in the development of Mega′s Monument Bay Project. Guided by
this framework, and through the collaborative efforts of Red Sucker Lake
First Nation ('RSLFN?) and the Province of Manitoba, opportunities for
participation by RSLFN have been identified surrounding employment
training, business development and land use mapping.

To fund these initiatives, it is proposed that the RSLFN will
participate in a non-brokered private placement of 786,000 units of the
Corporation ('Units') through a trust (the 'RSLFN Trust') for the
benefit of the RSLFN at a price of $0.51 per Unit for gross proceeds of
approximately $400,000. The gross proceeds of the Units sold under the
private placement will be used in connection with the Monument Bay
Project for costs associated with the above initiatives involving RSLFN.

Jim Rogers, President and CEO of Mega stated: 'The progressive attitude
toward economic development demonstrated by Red Sucker Lake First Nation
and the Province of Manitoba and, more specifically, the creative
thinking of Chief Larry Knott (Red Sucker Lake First Nation), Minister
Dave Chomiak (the Province of Manitoba) and Louis Harper (Manitoba
Keewatinowi Okimakanack Inc. (MKO)) have been instrumental to the
success of this initiative. This initiative will not only support the
timely and sustainable development of Mega′s Monument Bay Project, but
will provide a foundation for increased economic activity in and around
the region. We look forward to growing our relationship with the
community and to sharing in the benefits that will come by way of the
Monument Bay Project.?

Pursuant to the private placement, each Unit will be comprised of one
common share of the Corporation (collectively the 'Unit Shares') and
one-half of one share purchase warrant of the Corporation (each whole
warrant, a 'Warrant'). Each Warrant will be exercisable to purchase one
common share of the Corporation (a 'Warrant Share') for period of three
years from the closing of the private placement at an exercise price of
$ 0.76. The Unit Shares will be held in escrow and released over a 27
month period from the date of closing of the private placement subject
to certain exceptions.

The completion of the private placement is subject to the RSLFN Trust
obtaining a minimum of $400,000 in funding for the purchase of the Units
and certain other conditions typical for a transaction of this nature
and the receipt of all necessary regulatory approvals including the
approval of the TSX Venture Exchange. The private placement is scheduled
to close on or about September 29, 2011. The Units and the Warrants
issued under the private placement will be subject to a statutory hold
period of four months and one day after the date of closing of the
private placement.

Mega recognizes the value that local communities bring to project
development. Having resources available in the immediate vicinity of a
project provides many advantages and it is in Mega′s best interest to
work with local communities in the development of such resources.

Mega Precious Metals Inc. is a well financed Canadian-based
mineral exploration company with several projects in Northwestern
Ontario, Manitoba and Nunavut. The Corporation is committed to an
accelerated growth strategy and is backed by a team of experienced
mining experts and a strong financial position. The Corporation 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.

Forward-looking Information

Certain statements in this press release relating to the completion
of the private placement and the use of proceeds from the private
placement and the private placement is 'forward-looking information'
within the meaning of securities legislation.The Corporation
does not intend, and does not assume any obligation, to update this
forward-looking information.This forward-looking information
represents management′s best judgment based on current facts and
assumptions that management considers reasonable. The Corporation makes
no representation that reasonable business people in possession of the
same information would reach the same conclusions. Forward-looking
information involves known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Corporation to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
information.Readers should not place undue reliance on
forward-looking information. More information about risks and
uncertainties affecting the Corporation and its business is available in
Mega Precious Metal′s filings which are posted on sedar at www.sedar.com.

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.

Shares Issued: 76,256,980

Mega Precious Metals Inc.

Jim Rogers, President and Chief Executive
Officer

O: 807-766-3380

TF: 877-592-3380

info@megapmi.com