Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

January 17, 2011 08:00 ET

Augen Gold Raises $5.3 Million from Exercise of Warrants

More Than 96% of Accelerated Warrants Exercised by Shareholders

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2011) - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) announced today that it has raised $5,308,875.50 as a result of the acceleration of the remaining 22,089,957 warrants to purchase common shares of the Company, issued on May 14, 2010 and May 20, 2010 as part of a private placement of flow-though units and units of the Company.

"Shareholder response was extremely positive, and serves to emphasize investors' belief in the direction Augen Gold's management is taking," said J. David Mason, president and CEO of Augen Gold. "Most importantly, the proceeds will enable GLD to expand its current aggressive drilling program to at least 10,000 metres, targeting two areas: the mineral-rich North Shore of Lake Opeepesway and the area west of Coté Lake, contiguous with Trelawney's multi-million-ounce discovery."

21,235,502 or 96.1 percent of the accelerated warrants were exercised, and, in fact, another 1,620,000 warrants from different issues were also exercised, providing additional proceeds of $340,000. The net proceeds of the Warrants will be used to fund the Company's exploration initiatives and for working capital purposes.

Each Warrant entitled the holder to purchase one Common Share at a price of $0.25 per share. The Warrants were originally set to expire on November 14, 2011, and instead expired January 7, 2011. (Please see GLD's press release dated 3 December 2010.)

Augen Gold was successful in raising approximately $14.8 million through 2010 to date, and is focused on achieving its exploration milestones. Since inception in October 2006, the Company has raised more than $25 million for the South Swayze Project.

About Augen Gold

Augen Gold is a gold exploration and development company with 23,685 hectares of staked and patented mining claims in the Southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The claims cover a 45-kilometre long section of the Ridout Deformation Zone, believed to be the western extension of the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the major gold camps of Timmins and Kirkland Lake, and the claims contain numerous gold showings that have received very little historical exploration. Augen Gold is the first company to have assembled such a coherent ground position. Augen Gold has performed a detailed airborne geophysical survey over the whole area, and its sampling program has confirmed the historically reported gold values. The correlation of many gold showings with geophysical features indicates excellent potential for the discovery of additional deposits. The Company's objectives are to aggressively explore the gold showings that correlate with geophysical anomalies, continue resource definition at the Jerome Mine, and to expand its property portfolio with highly prospective mineral assets.

For more information on the South Swayze Project, please refer to the Company's NI 43-101 compliant technical report "Amended and Restated Technical Report on the Augen Gold Corp. Claims, Porcupine Mining Division, District of Sudbury, Ontario, Canada" (effective April 8, 2008 available on the Company's profile at www.sedar.com).

For more information on Augen Gold, visit our website at www.augengold.ca.

The Company's documents may be accessed at www.sedar.com.

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, 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 minerals; 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 other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Shares outstanding: 125,046,361

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.

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