Augen Capital Reports First Quarter 2012 Results

TORONTO, ONTARIO--(Marketwire - May 24, 2012) - Augen Capital Corp. ("Augen" or the "Company") (TSX VENTURE:AUG) today announced its consolidated financial results for the three months ended March 31, 2012.

During the first quarter of 2012, the Company recorded a net loss of $530,770 (2011 - $2,372,060) or a net loss of $0.01 (2011 - net loss of $0.04) on a per share basis. This result was mostly due to a realized loss on sale of investments of $955,636 (2011 - gain of $378) offset by an unrealized gain of $758,065 (2011 - unrealized loss of $2,051,964). The Company generates income primarily through its investment portfolio, the value of which is closely related to global capital market conditions and the general economic environment.

Consolidated expenses during the three months ended March 31, 2012 were $337,671 (2011 - $325,263), an increase of $12,408 which was largely attributable to the increase in general and administrative expenses of $84,921 to $330,532 (2011 - $245,611), which was partially offset by a decrease in share-based compensation expense of $67,764 to $794 (2011 - $68,558) representing the vesting of stock options during the three month period. As a result, the Company has loss from operations of $1,288,835 (2011 - loss of $320,096), an increase of $968,739.

Consolidated Statements of Operations and Comprehensive Earnings (loss)
		2012		2011
For the three months ended March 31,		$		$
Income (loss)		(951,164	)	5,167
Expenses		337,671		325,263
Earnings (loss) from operations		(1,288,835	)	(320,096	)
Unrealized (gain) loss on FVTPL investments		758,065		(2,051,964	)
Earnings (loss) before income tax		(530,770	)	(2,372,060	)
Income taxes
	Current	-		174
	Deferred	-		-
		-		174
Net earnings (loss) and comprehensive earnings (loss)		(530,770	)	(2,372,234	)
Earnings (loss) per share
	Basic and diluted	(0.01	)	(0.04	)
Weighted average shares outstanding		77,837,039		62,074,212

Investment Portfolio

The Company's investments consist primarily of companies whose principal businesses are related to resource exploration and development. At March 31, 2012, the market value of the Company's investments was $853,942 (December 31, 2011 - 2,168,100), a decrease of $1,314,158 or 61% during the three months. The decrease was largely due to the selling of certain investments during the period. The Company's most significant investment represented 45% of the investment portfolio as at March 31, 2012. The realized loss on sale of investments continued to have a significant negative effect on the earnings of the Company.

The condensed interim consolidated financial statements for the three months ended March 31, 2012 and the Company's public documents are available at www.sedar.com. For more information on Augen Capital, visit our website at www.augencc.com or e-mail investor relations at investorrelations@augencc.com.

About Augen Capital

Augen Capital Corp. ("Augen") (TSX VENTURE:AUG) is a Toronto-based public mining merchant bank. The Company actively seeks, invests and finances prospective mining and resource projects and generates capital gains from the appreciation and disposition of merchant banking positions.

This news release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this news release including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the investee companies expect to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company and investee companies. Additional risks and uncertainties can be found in our Management's Discussion and Analysis and in filings with the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this news release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Shares outstanding: 77,837,039