MEGA ANNOUNCES INCREASE IN PRIVATE PLACEMENT FINANCING TO RAISE UP TO $9,670,000

Thunder Bay, Ontario
October 21, 2011 Shares Issued: 76,721,980

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) announces that, further to its news release dated October 14, 2011 in respect of its best efforts private placement (the “Private Placement”) of units (“Units”) and flow-through units (“Flow-Through Units”), Mega has decreased the price per Flow-Through Unit from $0.70 to $0.65, and increased the number of Units and Flow-Through Units to be offered in connection with the Private Placement.

The Private Placement will now include the issuance of up to 5,000,000 Units (representing an additional 1,226,400 Units) at a price of $0.53 per Unit, and up to 10,800,000 Flow-Through Units (representing an additional 800,000 Flow-Through Units) at a price of $0.65 per Flow-Through Unit, for aggregate gross proceeds of up to $9,670,000 (the “Offering”).

The Corporation has granted to the Agents an option to increase the size of the Offering by up to an additional 750,000 Units and 1,620,000 Flow-Through Units at the respective offering prices, exercisable in whole or in part, for a period of up to 48 hours prior to the closing of the Offering. All other terms of the Offering remain the same as previously announced in Mega’s news release of October 14, 2011.

Mega Precious Metals Inc. is a 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. Mega 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, please contact:
Mega Precious Metals Inc.
Jim Rogers, President & Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@megapmi.com

Forward-looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the expected closing of the Offering, the use of proceeds from the Offering and the other terms of the Offering, strategic plans, spending commitments, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the fact that regulatory approvals required in connection with the Offering will not be received, or that the other conditions of closing of the Offering will not be met, and the risks identified in Mega's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Mega disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.