AUGEN GOLD CORP. ANNOUNCES COMPLETION OF SECOND CLOSING OF BROKERED FINANCING

Shares outstanding: 99,988,159

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TORONTO, Oct 1 /CNW/ - Further to its press releases dated August 16, 2010, September 2, 2010, and September 27, 2010, Augen Gold Corp. ("Augen Gold" or the "Company") (TSX-V: GLD), is pleased to announce a the completion of the second closing of its previously announced private placement offering (the "Offering"). On August 13, 2010, Augen Gold announced a private placement of Flow-Through Units and Units for gross proceeds of up to $2,000,000. On September 2, 2010 the Company announced that it had completed the first closing of the Offering, raising gross proceeds of $766,100. On September 27, the Company announced an increase in the size of the second closing Offering due to increased investor demand. Industrial Alliance Securities and Secutor Capital Management Corporation acted as co-lead Agents (collectively, the "Agents") on the second closing of the Offering.

The second closing consisted of 12,519,954 Flow-Through Units at $0.22 per Flow-Through Unit for gross proceeds of $2,754,390, and 3,767,000 Units at $0.17 per Unit for gross proceeds of $640,390.  The total gross proceeds of the second closing were $3,394,780, and the aggregate gross proceeds of the first and second closings were $4,160,880.

Each Flow-Through Unit consisted 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 for a period of 18 months following the closing date. The Company has granted the Agents an over-allotment option of 15%, exercisable at the issue price for a period of 30 days following closing.

The securities issued pursuant to the second closing of the Offering are subject to trade restrictions expiring on January 31, 2011, pursuant to applicable securities laws. Compensation to the Agents consisted of a cash commission of $271,582.39 and 1,302,956 agent's warrants, each such agent's warrant entitling the holder to acquire one common share for $0.25 until March 30, 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 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 23,685 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.

The geological information contained in this news release has been prepared by Augen Gold's Project Geologist, Gordon McRoberts, P.Geo., who is a Qualified Person for the Company's Jerome Project under the definitions established by National Instrument 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

For more information on the South Swayze Property, please refer to 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).

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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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