Augen Gold Corp Appoints Special Committee to the Board of Directors

    
    -  New Chairman Elected
    -  Postponement at Emergency Meeting Ratified
    

TORONTO, July 19 /CNW/ - Augen Gold Corp (TSXV:GLD) ("Augen Gold" or the "Company") reports that its board of directors ("Board") met on Friday, July 16, 2010 and established a special committee of directors consisting of Tim Peterson and Lorne Woods in response to the apparent solicitation and submission of blank proxies (the "Dissident Shareholders").

The Special Committee was mandated to (i) take charge of direction of the proxy solicitation efforts on behalf of the Company, (ii) investigate the conduct of the proxy solicitation of Dissident Shareholders, (iii) recommend a meeting protocol for the shareholder meeting to the Board, and (iv) make recommendations to the Board in relation to other matters which may arise.

At Friday's meeting the Board replaced Mr. Sbrolla as Chairman of the Company and elected David Mason, President and Chief Executive Officer of the Company, as its Chairman. The Board ratified the steps taken at the emergency meeting of the Board on July 13, 2010, including the supplemental mailing of proxies to shareholders and the postponement of the shareholder meeting to July 23, 2010 at 10:00 a.m. (Toronto time) at the Toronto Board of Trade.

The Company is responding to the actions by organizers of a group of Dissident Shareholders, who appear from media reports to be, attempting to take control of Augen Gold by installing their own nominees without disclosing the identity of their proposed directors, a plan for management or operation of the Company. The Dissident Shareholders have acted in secret, not revealing their identities, nor their intent.

It is extremely urgent that all shareholders of the Company submit their vote immediately to ensure their voice is heard on this critical issue that will determine the fundamental control and direction of their investment. Shareholders are encouraged to send a message by lodging their vote, which will inform the organizers of the Dissident Shareholders that your interests must not be disregarded, and if they want control they must earn your support in public and offer a fair change of control premium.

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]