Augyva Mining Resources Inc.

Augyva Mining Resources Inc.

August 30, 2011 09:30 ET

Augyva Shareholders Overwhelmingly Elect New Board: New Board to Initiate Strategic Review

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2011) - The shareholders of Augyva Mining Resources Inc. ("Augyva" or the "Company") (TSX VENTURE:AUV) elected a new Board of Directors at its annual and special meeting held in Montreal on August 29, 2011. Peter R. Jones has been appointed Chairman of the Board of Directors, and joins Sandy C.K. Chim, Michael R. Skutezky, Farhad Abasov, John Knowles, C. Nigel Lees and Kuldeep Billan as Directors.

"It has been gratifying to receive strong shareholder support for the new Board," said Kuldeep Billan, principal of RCM Partners Inc. "However our work is only beginning. We as a Board will move quickly to undertake a strategic review of the Company and its assets in order to determine the best options for all shareholders moving forward."

In furtherance of the new Board's commitment to transparency and good corporate governance, after the shareholders' annual and special meeting their first action was to name the following committees.

  • Audit Committee – John Knowles, Sandy C. K. Chim and Kuldeep Billan

  • Compensation Committee – C. Nigel Lees, Farhad Abasov and Peter R. Jones

  • Corporate Governance and Nominating Committee – C. Nigel Lees, Peter R. Jones and John Knowles

Kuldeep Billan commented, "Augyva has a very strong, independent Board with an impressive track record of mining industry accomplishment and mine operations experience. We look forward to improving corporate governance measures in place at the Company and sending clear signs of the Board's responsiveness to shareholders."

Further, the Board has created a strategic review and transition committee comprised of the following: Kuldeep Billan, Farhad Abasov and Peter R. Jones.

Kuldeep Billan commented "as per our Concerned Shareholder proxy circular, a key component of the new Board's plan is to undertake a strategic review of all of the Company's assets, specifically its 35% interest in the Duncan Lake Iron Ore Project. As the Board undertakes its review, the appropriate financial and legal advisors will be engaged. We look forward to updating shareholders in due course."

As well, Director Mr. Sandy C.K. Chim wishes to address certain allegations published by previous management of the Company in a press release dated August 25, 2011, with respect to potential conflicts of interest. Mr. Chim has been the Chief Executive Officer of Canadian Century Iron Ore Corporation (an indirect subsidiary of Century Iron Mines Corporation) since 2008, and this was to the full knowledge of the previous Board of Directors of Augyva. Mr. Chim has informed the Company that any past, current or foreseen interest of Mr. Chim in any matter that could potentially be conflicting with his duties as Director of the Company, including those matters mentioned in the August 25, 2011 press release, were disclosed to the previous Board in a timely manner. In addition, he advised the new Board that he has always acted with integrity and openly with the other members of the previous Board and will continue to act in the same diligent and transparent manner vis-à-vis the new Board, the Company and its shareholders.

About Augyva Mining Resources Inc.

Augyva is an exploration and development company holding five (5) properties located in the James Bay and Abitibi regions of the Province of Quebec. Its major project under development is the Duncan Lake Iron Ore Property located in the western part of the La Grande Greenstone Belt and hosts Algoma type iron deposits in a volcano-sedimentary sequence. The property, directly accessible by road, covers 5,848 hectares. Further to a drilling program of over 10,000 meters, completed in May 2009, a National Instrument 43-101 compliant technical report on the mineral resource estimate (the "Technical Report"), prepared by Met-Chem Canada Inc. ("Met-Chem"), was released in March 2010. Met-Chem has completed in December 2010 an internal opportunity study of the property. Augyva also awarded Roche Ltd. the mandate to carry out an environmental scoping study (ESS) for the project. Augyva has also completed the first 8,000 meters of its Phase II drilling program which began in January 2011 and a total of 24 holes have been drilled. Assay results will be released shortly. Other iron and related opportunities continue to be evaluated on an ongoing basis.

In addition to advancing the Duncan Lake iron ore project, Augyva holds an 100% interest in four (4) other gold and base metal properties: Yasinski (gold, platinum, chromite and other base metals) and Kali (gold, copper and other base metals) in the James Bay region; and Senneville (gold) and Malartic (gold) in the Abitibi region.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Augyva's disclosure documents on the SEDAR website at Augyva does not undertake to update any forward looking information except in accordance with applicable securities laws.

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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