Montviel dysprosium zone discovery + PEA update

Montreal, October 16, 2012 – Geomega Resources Inc. (“GéoMégA” or the “Company”) (TSX.V: GMA) announces a project update on its Montviel Rare Earths Elements/Niobium project. In January 2012, G Mining Services Inc. (“GMSI”) was retained to assume overall coordination and responsibility for engineering and financial evaluation to produce a Preliminary Economic Assessment study (“PEA”) Technical Report in accordance with NI 43-101 guidelines. The PEA results for the Montviel project are expected in Q1 2013.

Geology
The Phase 2 drilling assays (click here to download) revealed a Heavy Rare Earths (“HRE”) enrichment zone. Located on the southern periphery of the Core Zone, the HRE enrichment zone (“HRE-S”) was intersected by four (4) drill holes covering 75 metres (east-west) by 45 meters (north-south) by 120 meters vertical (click here to download). The HRE-S zone is open east, west and at depth and requires additional drilling to define its full extension.

“The Dysprosium enrichment in the HRE-S zone is an excellent complement to the Neodymium content in the Core Zone. Neodymium and Dysprosium are the critical elements for the high performance permanent magnets. ” comments Alain Cayer, VP Exploration of GéoMégA.

Resource estimation
Complete disclosure of the updated NI 43-101 compliant resource estimate for the Montviel Core Zone is scheduled for December 2012. The economic elements considered for the cut-off grade will be: Neodymium, Europium, Praseodymium, Dysprosium, Niobium and Gadolinium.

Metallurgy and process definition
Beneficiation and hydrometallurgical tests to optimize the recoveries of both Rare Earths elements (“REE”) and Niobium is progressing well. The PEA process flow sheet design will conclude by the end of Q4 2012.

Based on the results to date, GMSI is developing a conventional metallurgical recovery process flowsheet including:

•          primary crushing and grinding;

•          Flotation beneficiation;

•          Leaching of REE from the beneficiated material with hydrochloric (“HCl”) acid;

•          Amenability of Niobium to a saleable Niobium product from leaching residues;

•          Precipitation of impurities from leaching solution;

•          Precipitation of REE from leaching solution;

•          Leaching solution neutralization;

•          Regeneration of HCl acid from neutralized leach solution;

•          Conversion of precipitated REE into saleable Rare Earths products.

Mine design
The Montviel orebody will be mined using an underground approach via ramp access. The mine output will depend on the overall metallurgical recoveries and head grades. The production plan should aim at extracting in priority the higher grade material of the Montviel enrichment zone (click here to download). The throughput is market driven and based on the Roskill market review, an initial annual production in the range of 2,000 tonnes of Neodymium oxides is targeted.

Infrastructure
The Montviel project benefits from public infrastructure and available labour in the immediate area. The project site is located approximately 100 km north of Lebel-sur-Quévillon (pop. 2,800) and 45 km west of the Cree First Nation of Waswanipi (pop. 1,800) in the southern, developed, part of Northern Quebec. Montviel has permanent access with a high capacity (oversize) logging road connecting to provincial highway 113.

All infrastructures required for mining and processing of the ore should be located on site. Anticipated project energy will be provided by a 45 km long power line connected to the Hydro-Québec distribution network.

NI 43‐101 Disclosure
Robert Marchand, Eng., GMSI VP mining engineering, Gary H.K. Pearse, P.Eng., MSc., metallurgical consultant and Alain Cayer, Geo., MSc., VP-Exploration, are the Qualified Persons who approve the technical information presented in this news release.

About GéoMégA (ressourcesgeomega.ca)
GéoMégA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Québec mineral exploration company focused on finding economically viable deposits of Minor Metals in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.

29,274,113 common shares of GéoMégA are currently issued and outstanding.

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

/s/ “Simon Britt”
Simon Britt
Chief Executive Officer

For more information contact:
Simon Britt
President and CEO
GéoMégA
450 465-0099
info@ressourcesgeomega.ca

Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.