Mega Provides Review of 2011 Exploration Results and Exploration Update for North Madsen and Headway Projects in Red Lake, Ontario

Mega Precious Metals Inc. (MGP:TSX-V) ('Mega?) is pleased to
provide a review of 2011 exploration results and ongoing exploration
plans for the first half of 2012 on their gold properties in Red Lake
Ontario.

In 2011 both of our Red Lake projects saw significant advances in their
project evolution. At the North Madsen Project, Mega has completed a
comprehensive due diligence study of the historical drill core, surface
mapping, compilation of all technical data, diamond drilling, surface
channel sampling stripping and detailed grid mapping. At Headway the
combined drilling has confirmed the geological model and Hole MH1103 is
now advancing toward the target horizon beyond the 2011 year end depth
of 2462 metres (m).

North Madsen Project:

Some of the key 2011 North Madsen developments and results include:

• Executed > 12,000 metres of definition and step out drilling
  representing 52 drill holes
  
• Updated NI 43-101 compliant resource statement (see figure 1
  at end of release):
  

• 
  Update represents a 4,113 % increase of gold in all categories to the
  previously reported Laverty Dyke indicated resource of 395,000 tonnes
  grading 2.56 g/tonne and 32,000 tonnes grading 3.32 g/tonne. (click here
  to view the Laverty Dyke estimate); and
  
• 
  Sensitivity analysis indicates excellent potential to improve resource
  grades at lower gold prices and higher cut off grades.
  

• Outlined 3 additional open pit and high grade mineralized
  structures that host two different styles of mineralization.
  
• Identified multiple new targets along the D2 Fault Structure
  that is believed to directly relate to the emplacement of high grade
  gold in Red Lake (B. Dube Geological Survey of Canada).
  

• Engaged a minimum 5,000 m drilling contract with Forthright
  Drilling Services Inc. Drilling will commence mid January 2012.
  

For first half of 2012 the North Madsen exploration program will focus
on the following (see figure 2):

• Upgrading and extending the Buffalo Extension open pit
  mineralization.
  
  
  • 
    Current Buffalo Extension resource estimate includes 152,419
    inferred ounces;
    
  • 
    The results to date demonstrate that excellent potential remains
    to substantially increase the amount of ounces and outline the
    high grade mineralized systems.
    
• Step out and Definition drilling of previously released high
  grade South and Central Mineralized zones. These are located at the
  junction of the D2 Fault Structure and the main structure controlling
  mineralization at the Hasaga Mine.
  
  
  • 
    Some of the historical drilling results were: 18.21 g/t / 3.65 m,
    7.43 g/t / 1.0 m and 3.64 g/t / 5.6 m, 1.58 g/t / 6 m and 1.0 g/t
    / 9.0 m.
    
    
    • 
      None of South and Central mineralized zone intercepts were
      included in the
      
      NI 43-101 resource statement.
      

Headway Project:

Some of the key developments and aspects include:

• 
  MH1103 is currently located at 2474 m and is coring (see figure 3).
  
  
  • 
    Current rock type is a bleached mafic volcanic that has strong
    biotite, chlorite,
    
     ? andalusite,  ? epidote, and silica
    alteration.
    
    
    • 
      These bleached basalts are strongly leached in CAO, Fe2O3,
      MGO, MNO and Na2 which represent the same geochemical
      signature as the rocks found in the Red Lake Mine.
      
• 
  To date the drilling has confirmed the following:
  
  
  • 
    The geological model has been proven to a depth of ~2601 m;
    
  • 
    2 of the holes have encountered the mafic/ultramafic volcanic
    sequence of the Balmer Assemblage that hosts high grade
    mineralization, which includes the current hole;
    
  • 
    The current geochemical signature of the mafic volcanic sequence
    is displaying very similar characteristics to the bleached mafic
    volcanics found in the Red Lake Mine; and
    
  • 
    The current known geological horizon is known to host the current
    sulphide and bonanza gold mineralization associated with the Red
    Lake Mines.
    

Mr. Rogers commented, 'Mega is committed to finding and making mines.Red Lake and the North Madsen area have a rich history of underground
mining.Mega′s approach to unlock the economic potential of the
North Madsen Project is to compile and analyze the drilling and
historical mining done throughout the years.I believe that when
one steps back and considers the advances in mining technology, large
scale equipment and improvements to milling, metallurgy and recovery
that the North Madsen property is very comparable to districts where
open pit mining is common place.The technical issues at Headway
have delayed and overshadowed the project, however, we believe in the
potential of a high grade zone(s) in the hanging wall of Goldcorp′s Red
Lake Gold Mines and our goal is to get to a target depth in 2012.We
are excited and look forward to discovering new gold ounces and moving
Mega′s Red Lake and Monument Bay projects closer to feasibility in 2012.?

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.

Figure 1: Please click on the following link to view the 2011 Block
Model and Resource Distribution: http://www.usetdas.com/pr/megaGraphic1.jpg

Figure 2: Please click on the following link to view the 2012 N.
Madsen Exploration Program: http://www.usetdas.com/pr/megaGraphic2.jpg

Figure 3:Please click on the following link to view the Plan
view 2300 m showing location of MH 1103 in relation to the High Grade
target area: http://www.usetdas.com/pr/megaGraphic3.jpg

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.

Mega Precious Metals Inc.

Jim Rogers, President and Chief
Executive Officer

O: 807-766-3380

TF: 877-592-3380

info@megapmi.com