MEGA SIGNIFICANTLY EXPANDS THE KNOWN MINERALIZATION OF THE NORTH MADSEN, BUFFALO EXTENSION

Thunder Bay, Ontario
July 12, 2011 Shares Issued: 76,256,980

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce results for 5 additional diamond drill holes at the North Madsen Project.

Highlights include 21.0 metres (m) of 4.40 grams per tonne (g/t) followed by 21.3m of 0.94 g/t and 15.9 m of 1.65 g/t on the Buffalo West zone.

A summary of the drilling results are listed below.

MEGA 2011 North Madsen Drill Results
HOLE# *Previously Reported	ZONE	FROM (m)	TO (m)	INTERCEPT (m)	Au Grade (g/t)
*MM1016	Buffalo W	23.1	54.5	31.4	1.02
*incl	Buffalo W	42.5	54.5	12.0	2.0
*MM1016	Buffalo W	144.7	158.0	13.3	2.56
*incl	Buffalo W	144.7	146.5	1.8	15.7 vg
*MM1016	Buffalo W	233.0	244.0	11.0	1.85
*incl	Buffalo W	234.0	242.0	8.0	2.44
*MM1017	Buffalo W	26.5	60.0	33.5	1.94
*incl	Buffalo W	40.5	60.0	19.5	2.74
*MM1017	Buffalo W	155.5	156.5	1.0	7.82 vg
*MM1017	Buffalo W	171.0	175.0	4.0	2.55
*MM1017	Buffalo W	195.0	203.5	8.5	1.15
*MM1017	Buffalo W	230.0	235.0	5.0	1.74
*MM1017	Buffalo W	256.5	265.0	8.5	1.43
*MM1024	Buffalo W	156.0	169.5	13.5	1.11
*MM1026	Buffalo W	101.0	129.0	28.0	1.09
*incl	Buffalo W	101.0	107.0	6.0	1.58
*incl	Buffalo W	112.0	119.0	7.0	1.51
*incl	Buffalo W	125.0	129.0	4.0	1.60
MM1027	My-Ritt	162.0	163.0	1.0	5.26
MM1028	My-Ritt	48.0	49.5	1.5	5.41
MM1130	Buffalo W	132.9	154.5	21.6	0.60
*MM1131	Buffalo W	96.5	158.0	61.2	1.58
*incl	Buffalo W	96.5	113.0	16.5	0.99
*and	Buffalo W	126.5	158.0	31.5	2.39
*incl	Buffalo W	129.5	147.5	18.0	3.68
*MM1132	Buffalo W	137.5	152.5	15.0	2.01
*incl	Buffalo W	137.5	145.0	7.5	3.33
*and	Buffalo W	151.0	152.5	1.5	3.10
*MM1132	Buffalo W	211.0	217.0	6.0	1.29
*MM1132	Buffalo W	232.0	242.5	10.5	0.65
*MM1133	Buffalo W	214.5	222.0	7.5	2.13
MM1134	Buffalo W	49.5	57.0	7.5	1.30
MM1134	Buffalo W	274.5	288.0	13.5	1.00
incl	Buffalo W	274.5	282.0	7.5	2.02
MM1136	Buffalo W	52.5	73.5	21.0	4.40
incl	Buffalo W	58.5	69.0	10.5	7.26
MM1137	Buffalo W	90.0	126.0	36.0	0.59
MM1138	Buffalo W	163.5	166.5	3.0	7.80
MM1138	Buffalo W	239.7	261.0	21.3	0.94
incl	Buffalo W	240.4	253.5	13.1	1.27
MM1144	Buffalo W	99.0	106.5	7.5	2.15
incl	Buffalo W	103.5	106.5	3.0	4.77
MM1144	Buffalo W	123.6	139.5	15.9	1.65
incl	Buffalo W	134.6	137.5	2.9	6.65

Note: True Width is approximately 65% of Intersection Width
Minimum Reported Interval of ≥ 5 gram-metres using a variable cut-off grade of 0.4 g/t to 0.2 g/t

Jim Rogers, President and CEO of Mega commented “In 2010 I shared my belief that the future of Red Lake will include open pits and a large central milling facility. Our exploration model and business plan for the North Madsen Project, which is based on this belief, is consistent with that of Gold Corp. who during their May 20,2010 Investor Day presentation discussed “District Optimization” and confirmed the evaluation of a Red Lake (Balmertown) open pit as a strategic priority. Mega’s 2011 results and ongoing success at North Madsen have demonstrated the near surface gold potential of the project, supports my belief in regard to open pit potential, and raises the possibility of near term production from a smaller facility located at the project”.

Mega’s exploration program for the North Madsen project involved a comprehensive due-diligence study of historical drill core and a compilation of the technical data available for the Project. Based on the study Mega initiated a multiphase program focused on: (1) defining the economic potential and ultimate size of the mineralized systems by systematic drilling along strike and down plunge; and (2) searching for new gold zones within the auriferous grantic pluton complex.

Diamond drilling to date in relation to this multiphase exploration program has outlined a total of 7 mineralized structures that host two different styles of mineralization. In June 2010 Mega released an NI 43-101 resource on the first of these mineralized structures, the “Laverty Dyke Zone”. The 2011 program to date has completed over 8800 metres of diamond drilling and has significantly expanded the Buffalo Extension mineralization both laterally and vertically. Continued exploration success on the project has indicated that the deposit remains open in a number of directions, highlighting the potential for additional resource expansion on 4 of the 7 mineralized structures.

See the plan and isometric views at www.megapmi.com/north_madsen_gallery showing the current and planned drill holes of the Buffalo West Extension Mineralization.

In 2011, Mega will be completing an updated NI 43-101 resource that will include the Laverty Dyke Zone and the 6 other mineralized structures located within the North Madsen Project.

The North Madsen property lies within the Madsen Mine Trend, home to 5 past producing mines. Mega believes that the property is part of a much larger gold system that encompasses the adjacent Howey, Hasaga and Gold Shore mines. The Madsen Mine Trend is located in the prolific Red Lake Gold Camp which has produced more than 25 million ounces of gold to date and continues to produce approximately 700 thousand ounces of gold per year from the district's production base at Goldcorp's Red Lake Gold Mine. When compared to other camps, Red Lake is a young and developing camp where consolidation and 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

For further information, please contact:

Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@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.