Mega Graphite is pleased to announce that it has entered into a term sheet to acquire 100% of the Uley mine in Australia from Strategic Energy Resources. The deal is planned to close within the next couple of months.

The Uley Project is a world-class graphite deposit situated in the Eyre Peninsula, South Australia. The Uley Graphite property consists of five contiguous tenements, including two retention licences (412.5 ha), two mining leases (66 ha combined) and one exploration licence (75 km2), situated approximately 23 km west and southwest of Port Lincoln. At Uley, high-grade flake graphite mineralization occurs in a complexly folded and faulted succession of schists and gneisses of Proterozoic age.

Uley was discovered in the 1910's and has been worked intermittently since the late 1920's. When in operation, the plant was capable of producing up to 14,000 tonnes of graphite concentrate per year. The mine has been idle since 1993.

MEGA Graphite Inc. believes that the property contains significant potential for the discovery of additional graphite resources and the re-establishment of a successful graphite mining operation.