AUGEN GOLD CORP. ANNOUNCES CLOSING OF BROKERED FINANCING OF $766,000

Shares outstanding: 81,096,847

TORONTO, Sept. 2 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) is pleased to announce the first closing yesterday of the private placement financing previously announced on August 13, 2010. Industrial Alliance Securities and Secutor Capital Management Corporation acted as co-lead Agents (collectively, the "Agents") on this brokered private placement.

The private placement consisted of 1,110,000 Flow-Through Units at $0.22 per Flow-Through Unit for gross proceeds of $244,200, and 3,070,000 Units at $0.17 per Unit for gross proceeds of $521,900.  The total gross proceeds were $766,100, and Augen Gold intends to complete further closings for aggregate gross proceeds of $2,000,000 on the terms as announced on August 13, 2010.

Each Flow-Through Unit will consist of one common share, issued on a flow-through basis, and one common share purchase warrant of the Company (a "Warrant").  Each Unit will consist of one common share of the Company and one Warrant. Each Warrant entitles the holder to purchase one common share at a price of $0.25 until March 1, 2012.

The securities issued pursuant to the private placement are subject to trade restrictions expiring on January 2, 2011 pursuant to applicable securities laws. Compensation to the Agents consisted of a cash commission of $61,288 and 334,400 agent's warrants, each such agent's warrant entitling the holder to acquire one common share for $0.25 until March 1, 2012.

Net proceeds of the financing will be used to fund exploration and for working capital purposes. The aggregate proceeds raised from the issuance of the flow-through common shares and units will be used by the company to incur exploration expenditures on its properties in Ontario, which will constitute Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act (Canada)), which will be renounced to purchasers for the 2010 taxation year.

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 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.

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]
Email: [email protected]

For more information on Augen Gold, visit our website at www.augengold.ca
The Company's public documents may be accessed at www.sedar.com