AUGEN GOLD MANAGEMENT CONTINUES TO WORK FOR SHAREHOLDERS DESPITE DISSIDENT
DISTRACTION TACTICS

Vote YELLOW Proxy and Protect Your Investment

TORONTO, Sept. 24 /CNW/ - Augen Gold Corp. (GLD) reminds shareholders to vote their YELLOW proxy before the approaching September 27, 2010 5p.m. (Toronto time) deadline.

The management and Board of Augen Gold Corp. remind shareholders that an independent proxy advisory service, ISS Proxy Advisory Services Canada released a report recommending AGAINST wholesale change. They confirmed that voting your YELLOW proxy will enable incumbent management to continue its drive to develop its South Swayze property and build value for shareholders.

"Augen Gold Corp. is well managed, and currently on a path to unlocking shareholder value" said David Mason, President and CEO. "The costly distractions created by minority dissident shareholders, are just that, nothing more than a distraction, sucking our resources and eating up the cash of our investor Augen Capital to boot. Dissidents are attempting to undermine shareholder confidence and gain control of Augen Gold Corp without paying fair value".

Mason continued saying, "It is evident to me that dissidents are more concerned with their personal gain, than increasing shareholder value. Going forward, Augen Gold will continue focusing on building its resource in order to deliver value to shareholders. We are appalled by the minority dissident's distraction tactics".

ISS Proxy Advisory Services applauds Augen Gold Corp's recent share price performance, and acknowledges that Augen Gold is "well financed" and on the path to unlocking shareholder value. The report concludes that incumbent management has carried out a reasonable plan to create shareholder value. ISS Proxy Services found there have been no major strategic missteps other than CEE, which cannot be solely attributed to incumbent management.  

Augen Gold has been successful in raising approximately $4.9 million in financings, in 2Q10, comprised of $1.5 million in flow through, AS WELL AS $3.4 million in hard dollars, and is now well financed to achieve its next exploration milestones. Since inception in October 2006, the Company has raised a total of approximately $17 million for the South Swayze Project.

This week Augen Gold provided a promising update of gold exploration activity at Opeepeesway Lake within its 100% owned South Swayze property. Initial assay results for the testing at Opeepeesway are positive for gold.

Augen Gold is currently drill testing three lake sediment Soil Gas Hydrocarbons ("SGH") anomalies under the east arm of Opeepeesway Lake using a barge as a drilling platform. Drilling commenced during the last week of July and six holes totaling 1,100 metres have been completed to date.

Said David Mason, President and CEO,

"The dissident shareholders continue to attempt to take control of the Company without paying shareholders fair value by disrupting current plans.  The dissidents' tactic has been to disrupt the Company, and then use that very disruption as a justification for taking control."

In particular, the dissident shareholders have blamed current management for problems related to the dissidents' own turnover and resignations, as well as the resignations of their own appointees. It is the Company's view that these same dissident shareholders have been the cause of MOST such problems, which is why the Company has encouraged shareholders to vote in favour of the Company's nominees for the board at the September 30 shareholder meeting.

The management of Augen Gold Corp has built a solid foundation for future growth of Augen Gold by:

• Discovering the potential in the historic Jerome Mining property in 2006
• Raising $16 million to fund exploration and retire debt in a challenging capital market where the average financing was just over $2,000,000
• Finding and financing the property opportunity
• Increasing the target from the historic scope at the Jerome mine of 127,329 ounces to a computer modeled target on the Leapfrog modeling program for a 50 m search radius of up to 24 million tons with a grade ranging from 1.4 to 7.1 g/t at cut-off grades of 0.05 to 5.0 g/t; and
• Identifying several other targets that have the potential to be Jerome size or greater

Augen Gold's incumbent management have steered the company to success. Dissidents' claim that incumbent management is not suited to lead the company, suggesting they can do a better job. This simply is not true.  The dissidents have a record of poor performance which Augen Gold should avoid at all costs.

Over the past 200 days, Augen Gold has outperformed companies controlled by dissidents and members of their proposed senior management by 150-200%.

Dissidents' plans are mixture of motherhood statement and admissions of their inability or lack of interest in running Augen Gold.

The dissidents plan drilling, working towards a defined resource, analyzing the type of mine that might be built, exploring the property, leveraging off of existing infrastructure for development and evaluating joint venture opportunities.  In place of these statements of obvious objectives for any exploration company, Augen Gold has been engaged in a specific campaign to drill out portions of the property to define resources. The results are clear and they are public.  Augen Gold's progress is recorded in its press released results!

Incumbent management has the knowledge and experience to unlock shareholder value and fully ascertain the potential of our targets. 

The dissidents proposed directors do not have the breadth of experience in gold mining that incumbent management and its proposed directors possess.  By their own admission the dissidents are unable to run Augen Gold without an "Advisor Board of Exploration and Mining veterans".  Augen Gold's board should be that advisory board.  Augen Gold proposes a board of veterans with mining expertise.  The dissidents appear to be already seeking to abdicate the very responsibility they seek.

The dissidents do not have the depth of understanding of the communities in the region of the Jerome mine that incumbent management and its proposed directors possess.  Augen Gold's nominees have the only ground experience in the Jerome mine region. 

Augen Gold's nominees have principal occupations in the mining sector and, in the case of Mr. Lamoureux, solid credentials as an incoming Audit Committee Chair.

Experience and understanding are essential to maximize value to shareholders.

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.

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Email: [email protected]