Augen Gold Corp. to close $4,600,000 brokered financing and announces further
$300,000 financing

Shares outstanding: 49,916,560

TORONTO, May 10 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) is pleased to advise that the previously announced $4,000,000 brokered private placement financing plus over-allotment option of 15%, for gross proceeds of $4,600,000, will close on Thursday, May 13, 2010. Pursuant to this financing, a total of 18,770,635 hard dollar units ("Hard Dollar Units") will be sold at $0.17 per unit for gross proceeds of approximately $3,191,000, and a total of 6,404,510 flow-through units ("Flow-Through Units") will be sold at $0.22 per unit for gross proceeds of approximately $1,409,000.

The Company is also pleased to announce a further private placement financing, which will be the final closing in this series, consisting of an additional 1,764,705 Hard Dollar Units for gross proceeds of $300,000 to be sold on the same terms subject to regulatory approval.

For both of these private placement financings, each Flow-Through Unit will consist of one common share and one-half common share purchase warrant ("Warrant") of the Company. Each Hard Dollar Unit will consist of one common share of the Company and one Warrant. Each whole Warrant will entitle 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 will have the right to accelerate the expiry date of the Warrants if the volume weighted average closing price of Augen Gold's common shares, as traded on the TSX-V, exceeds $0.40 per share for more than 10 consecutive trading days. In that event, the Warrants will expire 30 days after Augen Gold has given notice of the accelerated expiry to the Warrant holders.

Net proceeds of the financing will be used to fund exploration, retire indebtedness to Augen Capital Corp., who is a related party, and working capital. All securities issued in conjunction with the offering will be subject to a hold period, which expires four months after closing. 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.

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

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.

SOURCE AUGEN GOLD CORP.

For further information: For further information: J. David Mason, Chief Executive Officer and Director, Augen Gold Corp., Tel: (416) 779-7074 or (416) 777-2007, Toll-free: 1-888-442-8436, Email: dmason@augengold.ca

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AUGEN GOLD CORP.

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