Mega′s Stepout Drilling Outlines Two New Mineralized Zones and Further Expands the Quartz Tourmaline and Disseminated Zones at the North Madsen Project in Red Lake, Ontario

Mega Precious Metals Inc. (MGP:TSX-V) ('Mega?) is pleased to
announce results from 13 additional core holes totaling 4304.7 m from
its second phase step out drilling program which has defined two new
zones. Additionally drilling has further expanded the high grade quartz
(qtz) tourmaline veins and the large disseminated mineralized gold
structures at the North Madsen Project. Each of these drill holes
continues to enhance the open pit potential of this large gold bearing
system and each of the zones remains open along strike and down dip.

Mega′s focused exploration program continues to demonstrate that
additional higher grade gold mineralization occurs outside the existing
resource boundary or in areas that are currently estimated as low grade
and classified in the inferred category. To view previous drilling
results from North Madsen see news
release dated April 23, 2012.

None of the results from the 2012 drill program are included in the NI
43-101 resource which was released September 2011 and contained a NI
43-101 compliant Measured resource of 19,638,140 tonnes grading 1.27
g/tonne for 803,886 ounces, plus an Indicated resource of 3,838,000
tonnes grading 1.08 g/tonne for 133,281 ounces plus an Inferred
resources of 11,486,000 tonnes grading 1.03 g/tonne for 379,026 ounces
using a 0.50 g/tonne cut off grade.

Consolidated figures of the long sections are available below and the
full series is available at http://www.megapmi.com/nm_project_presentations

HIGHLIGHTS:

Disseminated Zone

• 
  MM1213 intersected, 53.0 metres at 0.66 g/t gold
• 
  MM1223 intersected, 26.0 metres at 1.57g/t gold, including 2.0
  metres ?at 9.98 g/t gold
• 
  MM1224 intersected, 70.0 metres at 0.86 g/t gold
• 
  MM1225 intersected 99.0 metres at 0.74 g/t gold, including 11.0
  metres at 3.96 g/t gold

Quartz Tourmaline Zone

• 
  MM1212 intersected, 23.0 metres at 1.37 g/t gold, including 5.0
  metres ?at 5.75 g/t gold
• 
  MM1213 intersected, 29.6 metres at 3.21 g/t gold, including 8.0 metres ?at
  4.61 g/t gold

Central Zone

• 
  MM1215 ?intersected, 105.0 metres at 0.66 g/t gold, including
  36.0 metres at 1.06 g/t gold

South Zone

• 
  MM1219 ?intersected, 3.0 metres at 0.96 g/t gold

A summary of the drilling results are listed below.

Minimum reported interval is >5 metre grams using a fringe cutoff
grade of 0.3 g/t

MM1218 the hole was abandoned due to broken
drill rods

Mega′s President & CEO, Jim Rogers commented 'Mega′s drill program at
the North Madsen project has outlined two new zones and continues to
expand the mineralization on the Buffalo Extension area. These results
for the new zones show significant promise and are confirming the
geometry, grade consistency, location to previous drilling and the
existence of an extensive mineralized system that is throughout the
property. These results continue to have a favorable impact on the next
resource statement as we continue to prove that we have one of the top
potential open pit projects of its kind in Ontario.'

Long Sections:

Please click on the following link to view the Longitudinal Section
of Disseminated Mineralization & Malard Zone Within the Buffalo Zone
Extension ? Including 2012 Results: http://www.usetdas.com/pr/megaslide6-08282012.jpg

Please click on the following link to view the Longitudinal Section
of Qtz-Tourmaline Mineralization Within the Buffalo Zone Extension ?
Including 2012 Results: http://www.usetdas.com/pr/megaslide8-08282012.jpg

Please click on the following link to view the Longitudinal Section
of Central Zone ? Including 2012 Results: http://www.usetdas.com/pr/megaslide9-08282012.jpg

Please click on the following link to view the Longitudinal Section
of South Zone ? Including 2012 Results: http://www.usetdas.com/pr/megaslide10-08282012.jpg

Technical Information:

Diamond drilling was NQ cored. Sampling of core (by Mega personnel) and
sample preparation and analytical analysis was provided by Accurassay
Labs, Thunder bay Ontario were carried out under the same strict
protocols that are outlined in the NI 43-101 Technical Report dated
October 2011 on North Madsen Project.

The property has been explored since 1925 by Red Lake Mines Limited
followed by various other companies with numerous trenches, ground
geophysical surveys and diamond drilling. The diamond drilling to date
shows the emergence of two types of structural and lithological features
typical of known world class gold camps.

Mega management believe that their Laverty and East My-Ritt properties
are all part of a much larger gold system that encompasses the adjacent
Howey, Hasaga and Gold Shore mines which historically produced
approximately 640,000 ounces of gold. Mega has an option to acquire a
100% interest in both Laverty and East My-Ritt properties.

The prolific Red Lake camp has produced more than 25 million ounces of
gold and production of about 700,000 ounces of gold per year continue as
the district's production base from Goldcorp's Red Lake Gold Mines. When
compared to other camps, Red Lake is still a young and developing camp
where consolidation, mechanization, improvements to processing
technology and 'Big Picture' economics will improve margins and drive
future success

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.

Mega Precious Metals Inc.

Jim Rogers, President and Chief Executive
Officer

O: 807-766-3380

TF: 877-592-3380

info@megapmi.com