CORRECTING and REPLACING Mega Announces Upgrade and 47% Increase of Gold Resource at the Monument Bay Project in Manitoba

THUNDER BAY, Ontario--(BUSINESS WIRE)--Please replace the release with the following corrected version due to multiple revisions.

“CIM Definition Standards on Mineral Resources and Mineral Reserves as prepared by the CIM Standing Committee on Reserve Definitions and as adopted by CIM Council, December 11, 2005.”

The corrected release reads:

MEGA ANNOUNCES UPGRADE AND 47% INCREASE OF GOLD RESOURCE AT THE MONUMENT BAY PROJECT IN MANITOBA

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to present an updated calculation of mineral resources at the Monument Bay Project, North Eastern Manitoba. Recent Surface diamond drilling targeted potential extensions of gold bearing mineralization similar to those that were outlined during historical drilling campaigns. The goal of this drilling was to upgrade portions some of the inferred resources to the measured and indicated resource categories and add additional mineralized zones.

Following a comprehensive due-diligence study of the historical drill core and a compilation of all technical data available which includes the results of the winter drill campaign, the Monument Bay deposit is now estimated to contain: NI 43-101 compliant Measured Resource of 221,510 tonnes grading 12.48 g/tonne, plus an Indicated Resource of 2,199,100 tonnes grading 7.12 g/tonne plus Inferred Resources of 6,147,000 tonnes grading 6.01 g/tonne using a 3.0 g/tonne cut off grade.

This upgrade equates to a 47% increase of gold in all categories compared to the previously reported Inferred Resource of 6,300,000 tonnes grading 5.98 g/tonne at a 3 g/tonne cut off grade which equates to 1,294,999 contained ounces (click here to view the Preliminary Economic Study filed in February 1, 2009).

Mr. Rogers commented: "We are very pleased that the results of the updated resource modeling has extended known zones, upgraded the resource quality, discovered new zones and increased the quantity of gold resources at the Monument Bay Project. We have extended the known mineralization to depth and added greater than 350 metres along strike of the previously known mineralization. We intend to continue to test the deposit along strike and down dip for additional resource expansion potential during the 2011 summer / fall exploration program. Another positive result of the detailed modeling is that in addition to underground resources there are also multiple opportunities to outline near surface open pittable resources. Mega continues on track to advance the project towards underground (UG) development in 2012 with the goal to achieve positive cash flow by 2014.”

MEGA June 28, 2011
Monument Bay Mineral Resource Estimate
Classification	Tonnes	Gold Grade	Contained
		(grams/tonne)	Ounces
Measured	221,510	12.48	88,905
Indicated	2,199,100	7.12	503,188
Measured+ Indicated Sub Total	2,420,610	7.61	592,093
Inferred	6,147,000	6.01	1,187,091

The estimates are in-situ and undiluted and figures are rounded

Resource model is using a 3 g/tonne cut off

Mineral Resources

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this press release were estimated using CIM Standards.

Resource Calculation Methodology

The construction of the geological and block model was a product of collaboration between Mega and Wardrop, A Tetra Tech Company (Wardrop). Mega personnel included Glen Kuntz P.Geo, Chief Operating Officer, Sean Butler P.Geo., Senior Project Geologist and Daana Magi Senior Project Geologist. All data in the resource evaluation were reviewed by Wardrop, with Mr. Todd McCracken P.Geo. assuming responsibility for the resource estimate upon which the statements reported herein are based.

Mineral Resource calculation

The geological model and corresponding sections and plans were generated by Mega personnel and then audited by Wardrop. Sections were selected at a tight spacing of 25 metres through the mineralized system and were based on all available geological and assay information. They show that major rock types and corresponding mineralized structures can be correlated on section to depths of >900 metres and over a strike length of > 2000 metres. Wardrop reviewed selected drill core from the mineralized system, reviewed geological logging and sampling protocols used by project staff and agrees with the geological interpretation derived from the combination of the historical and current geological interpretation. Mega prepared >1g/t assay composites tables in Gemcom Software Version 6.3 to allow inspection of the distribution of significant gold mineralized intervals excluding a large number (>2000) lower grade intercepts (<1 g/t gold).

The QAQC protocols and corresponding sample preparation and shipment procedures for the Monument Bay Project have been reviewed and approved by Wardrop.

The resource estimate was based on geological data provided by representatives from Mega Precious Metals and the most recent 2011 drilling analytical analysis was provided by Accurassay Labs. The update incorporates drilling conducted from surface during the first 4 months of 2011 consisting of 18 holes for a total of 8,845m.

The determination technique of the mineral resource is based on the combination of geological modeling, geostatistics and conventional block modeling using the ordinary kriging method of grade interpolation. The block model resource estimate prepared by the Wardrop, was based on 115,897 metres of diamond drilling in 438 diamond drill holes carried out between Q4-1990 and April 30 2011. The assay data was reviewed and a composite interval of 0.5 metres was used. Statistical and Variogram analysis was performed to determine the “nugget effect” and a parent block size of (10X1X10 m) was carried out.

The search ellipse parameters are the following:

Search ellipse parameters	Distance
• First Axis (strike direction):	10 M
• Second Axis (plunge direction):	15 M
• Third Axis (dip direction):	30 M

The present geological interpretation of gold mineralization in the Twin Lakes area recognizes 18 discrete mineralized zones that have an orientation of 100 azimuth and dip to the northeast at about 70º. The veins are distributed over an east-west distance of > 5 KM.

The variogram results are generally consistent with the geological model used in the ordinary kriged estimation method having two axes that approximate the observed geological and mineralized trend of the mineralized structures and support the observed plunge of the second axis in the geological model to the east at about (30-40 degrees). These shoots range from 300 to > 600 metres in length.

The estimation method involved a three pass search method, with each pass increasing the search parameters by a factor of two followed by a factor of eight and is consistent with standard block model methodology for measured, indicated and inferred mineral resources. A minimum of two samples and maximum of ten samples with no more than four samples from a single borehole were selected as requirements for populating each block.

The block model was constrained utilizing surfaces for the following:

• The river and lake bottom;
• The overburden boundary
• The mineralized zones and geological model
• The claim boundary

Qualified Person Comments/Quality Control Procedures

This press release has been prepared and revised by Glen Kunz P. Geo., Chief Operating Officer (COO) and Mr. Todd McCracken P.Geo. of Wardrop, a Tetra Tech Company both of whom are Qualified Persons under the NI 43-101 guidelines. The resource estimate has been prepared in compliance with National Instrument 43-101 and form NI 43-101F1, which requires that the estimate be prepared in accordance with the "CIM Definition Standards on Mineral Resources and Mineral Reserves as prepared by the CIM Standing Committee on Reserve Definitions and as adopted by CIM Council, December 11, 2005.

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.