Augen Gold files preliminary prospectus, commences drilling, and acquires additional claims



    TORONTO, Feb. 29 /CNW/ - Augen Gold Corp. ("Augen Gold") (TSX-V: AUG) is
pleased to announce that it has filed its preliminary prospectus which has
been approved the securities regulatory authorities in each province of
Canada, except Quebec.
    The prospectus qualifies the distribution to the public (the "Offering")
of a minimum of $2,000,000 and a maximum of $4,000,000 in common shares
("Common Shares") of Augen Gold at a price to be determined per Common Share,
and a minimum of $2,000,000 and a maximum of $5,000,000 in common shares
issued on a "flow-through" basis ("Flow-Through Shares") under the Income Tax
Act (Canada) (the "Tax Act") at a price to be determined per Flow-Through
Share, pursuant to an agency agreement (the "Agency Agreement") to be entered
into between Augen Gold and Union Securities Ltd. (the "Agent"). Augen Gold
will also grant to the Agent an over-allotment option (the "Over-Allotment
Option") to purchase up to 15% of the Common Shares and up to 15% of the
Flow-Through Shares sold in the Offering at a price to be determined.
    The proceeds will provide funding for Augen Gold to proceed with the
Phase I and Phase II exploration program recommended by Augen Gold management
and in the National Instrument 43-101 ("NI 43-101") compliant technical report
entitled "Technical Report on the Augen Gold Corp. Claims, Porcupine Mining
Division, District of Sudbury, Ontario, Canada" dated December 11, 2007
authored by Stephen M. Keller of Behre Dolbear & Company Ltd., an independent
Qualified Person.

    Drill Program Update
    Augen Gold commenced drilling at the Jerome Property on January 3, 2008.
As of February 11, 2008, eleven holes have been completed totaling 5,800
metres of the 10,000 metre Phase 1 drilling program and Augen Gold is awaiting
assay results. The Phase I and II drilling programs are designed to confirm
the historic resource of the Jerome Mine and to test for an extension of the
mineralized zones along strike.

    Acquisition of claims
    Augen Gold acquired an additional six unpatented mining claims in the
township of Huffman on December 18, 2007 for $27,500 in cash. This acquisition
is important in that Augen Gold now has a contiguous set of claims over the
area that is approximately 200 square kilometers, 8 kilometres wide and 45
kilometres long.
    "We are delighted with the progress to date of our technical program
which is ahead of schedule. We look forward to a successful initial public
offering," said Michael G. Fowler, President of Augen Gold.

    About Augen Gold
    Augen Gold Corp. is a junior gold exploration company with mining claims
located in the Swayze Greenstone Belt and covering an area of approximately
200 square kilometers, 8 kilometres wide and 45 kilometres long, including the
formerly producing Jerome gold mine and directly adjacent to the Young Shannon
gold deposit. The company's objective is to aggressively explore the Jerome
mine in order to confirm existing and identify additional NI 43-101 compliant
gold resources, to explore the gold potential along strike on the contiguous
mining claims, and to continue 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 documents may be accessed at www.sedar.com

    The TSX Venture has not reviewed and does not accept 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 certain factors and assumptions as set forth in this new release
including expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these factors and
assumptions to be reasonable based on information currently available, they
may prove to be incorrect. A number of factors could cause actual results to
differ materially from those in the forward-looking statements, including, but
not limited to results of exploration, project development, reclamation and
capital costs of the companies in the merchant banking portfolios ("investee
companies"), 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 the minerals the investee
companies expect to produce; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments; technological
and operational difficulties encountered in connection with the activities of
the Company's and investee companies. Additional risks and uncertainties can
be found in our 2006 Management's Discussion and Analysis and in filings with
the Canadian provincial securities commissions. Forward-looking statements are
given only as at the date of this news release and the Company disclaims any
obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.

    %SEDAR: 00025779E




For further information:

For further information: Michael G. Fowler, President, Augen Gold Corp.,
Tel: (416) 777-2007 Ext 224, Toll-free: 1-888-442-8436 Ext 224; John F.
Walter, John Walter Communications Inc., Tel. (647) 430-0197

Organization Profile

AUGEN GOLD CORP.

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