Augen Gold Concerned Dissidents Ignore Facts and Rules

TORONTO, Sept. 17 /CNW/ - Augen Gold Corp (TSXV:GLD) ("Augen Gold" or the "Company") read with concern a release made by Augen Capital Corp. and Envoy Capital Group Inc. (the "Dissident Shareholders") in connection with their attempt to seize control of Augen Gold. In particular, despite management clearly and publicly announcing progress regarding drilling and resource definition, the Dissident Shareholders continue to misrepresent the execution of planned progress towards resource definition by Augen Gold. We can only presume this a result of their displeasure that shareholders and the market are learning about progress which may impede their secret agenda to seize control of Augen Gold without paying a change of control premium to the majority of shareholders.

In addition, Augen Gold is shocked to learn that, despite the failure to disclose this fact in the Dissident Shareholder circular, proxy solicitation services appear to have been retained by the Dissident Shareholders. Disclosure rules clearly require a circular to identify a proxy solicitor when used and to state the cost or anticipated cost of the proxy solicitor. The Dissident Shareholders have either failed to disclose as required or have structured the retainer to avoid disclosure which should only be seen as a violation of the public interest. Given the concern of Dissident Shareholders about costs incurred by the Company in its defence, this revelation is shocking. Augen Gold will be asking securities regulators to review the disclosure of the Dissident Shareholders.

Augen Gold is particularly alarmed with the disingenuous statements made by the Dissident Shareholders claiming to seek value creation at Augen Gold despite their clear records of value destruction. Over the past 200 days, Augen Gold has outperformed companies controlled by dissidents and members of their proposed senior management by 150-200%.

To view the chart accompanying this release, please click here: http://files.newswire.ca/897/AugenGoldChart.pdf

The directors proposed by Augen Gold have a combined 84 years experience in resource exploration, development and finance, with a particular expertise in gold. In contrast, the Dissident Shareholders' nominees are disclosed as having a combined total of approximately 5 years experience, and state they require an expert board to provide them with mining advice.

The Company has mailed a reminder letter to shareholders. Shareholders are encouraged to read the material and vote. The Company cautions shareholders that the results of the meeting will determine the future of Augen Gold and the value of their investment.

Shareholders that have any questions or need assistance in voting please contact Laurel Hill Advisory Group, the Company's proxy solicitation agent, at:

Toll Free: 1.877.304.0211 Collect: 416.304.0211 email: [email protected]

About Augen Gold:

Augen Gold is a gold exploration company with 23,877 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 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.

Shareholders that have any questions or need assistance in voting please contact Laurel Hill Advisory Group, the Company's proxy solicitation agent, at:

    
    Toll Free:1.877.304.0211
    Collect: 416.304.0211
    email: [email protected]
    

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.

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.

For further information: J. David Mason, Chief Executive Officer and Director, Augen Gold Corp., Tel. [phone], reception and voice mail, Email: [email protected]