Augen Gold reports on initial results of winter exploration program for the
South Swayze Property

Shares outstanding: 45,216,560

TORONTO, Jan. 21 /CNW/ - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX-V: GLD) is pleased to provide an update of ongoing work on its 100% owned South Swayze Property in Ontario. This includes the program on the Huffman Lake option, which was announced last autumn. Line cutting, geophysics, and 28 diamond drill holes have been completed so far in this phase of the program.

Twelve drill holes (HF09-15 to HF09-24, HW09-25, HW09-26) targeted geological, geochemical and geophysical targets concentrated at Huffman Lake in the central part of Augen Gold's property.

Highlights from these drill holes include an intersection of 5.29 g/t gold and 424 g/t silver over 0.50 metres in drill hole HF09-23. The feldspar porphyry body generally bears abundant white and grey quartz veins and veinlets, disseminated pyrite and local tetrahedrite (typically silver bearing).

Most importantly, however is the fact that gold is being consistently intersected within porphyry in the drill holes covering a 1,750 meter long strike length. In addition it is apparent that some anomalously high silver values have been intersected.

The following table summarizes the highlights for some of the drill core assays from this area.

    
      DDH        Sample      From       To      Width*    Au      Ag
      No.          No.       (m)        (m)       (m)     (g/t)    (g/t)

    HF09-15     H821488     95.27      96.51     1.24     0.173     2.4
                H821146    110.83     112.25     1.42     0.183     1.6
                N523615    127.75     128.80     1.05     0.884     1.1

    HF09-16     E428031    147.70     148.05     0.35      1.15    12.9
                E428033    148.50     148.95     0.45      1.36    11.6

    HF09-18     N523555    114.66     115.57     0.91     0.658     2.9
                N523564    122.64     124.00     1.36     0.072     203
                N523565    131.18     131.37     0.19     0.458     1.4
                N523582    152.00     153.00     1.00     2.530     6.6

    HF09-19     N523669     82.00      83.00     1.00     0.331     3.2
                N523656     62.63      63.23     0.60     0.661    15.8

    HF09-20     E428135     97.40      98.30     0.90      2.15     2.0
                E428136     98.30      99.10     0.80      1.53     5.9
                E428141    101.70     102.81     1.11      2.38     2.9

    HF09-23     E428149      8.00       9.00     1.00     0.877  (less than)
                                                                    0.5
                E428209     63.00      64.00     1.00     0.811     3.1
                E428216     69.00      70.07     1.07      2.16     5.3
                E428226     79.00      80.00     1.00      1.09     3.6
                E428244     93.50      94.50     1.00     0.834    21.5
                E428263    110.00     111.00     1.00     1.795     6.1
                E428270    116.00     116.50     0.50      5.29     424
                E428277    120.76     121.15     0.39      3.72     178

    HF09-24     E428876    154.60     155.00     0.40     0.418     N/A
                E429023    249.50     250.00     0.50      1.77     N/A
                E429024    250.00     251.00     1.00      1.46     N/A
                E429025    251.00     252.00     1.00     1.575     N/A

    HW09-26     E429051    100.00     101.00     1.00     0.771     N/A
                E429052    101.00     102.00     1.00     0.616     N/A
                E429066    111.55     112.55     1.00     0.548  (less than)
                                                                    0.5
                E429068    251.00     252.00     1.00     1.575     N/A

                * Most drilling was performed at a dip of 50 degrees and
                    therefore true width would be reduced to 75%.
    

The objective of this 2nd phase of exploration is to delineate target areas of significant size, along the 45 km property length, with an average grade in excess of 0.25 grams gold per tonne, plus silver and other metals.

To date, outside of the Jerome Mine area exploration results, the Huffman claims have so far produced the most intriguing results. The target is at least 2 km long and 90 meters wide, within the 45 km long property owned by Augen Gold.

The South Swayze Property is located approximately halfway between the mining centres of Sudbury and Timmins and is accessible by road year-round. The property consists of 24,581 hectares of mining claims over a 45 kilometer length that extends southeast through parts of Esther, Fingal, Osway, Arbutus, Huffman, Potier, Yeo, Chester and Neville Townships.

Augen Gold's claims cover and flank a southeast-trending band of variably altered Timiskaming sedimentary rock up to three kilometres wide. This rock is similar in age and composition to a unique band of Timiskaming sedimentary rock in the Kirkland Lake gold camp, 230 kilometres to the northeast.

Several deformation zones, many which are auriferous are thought to be the extensions of those in the Kirkland Lake camp cut Timiskaming rock within the property, as well as younger intrusive feldspar porphyry and older Keewatin volcanic and sedimentary rock.

The Jerome Mine, located within the western half of the property, is hosted near the contact of deformed porphyry and Timiskaming sediment, and operated between 1940 and 1942, producing 56,000 ounces of gold and 15,600 ounces of silver.

As reported on June 20, 2008, Augen Gold's drill program was successful in confirming results obtained in two historical drill campaigns. The strike extent of mineralization, over 2.5 kilometres and intersected gold mineralization within intense alteration zones at depths of up to 700 metres was confirmed. All drill data has been digitized, and a 3-D model of the mine has been created (News Release, January 23, 2009).

    
    -------------------------------------------------------------------------
             Conceptual Grade and Tonnage Estimates, Jerome Mine
    -------------------------------------------------------------------------
    Lowest Grade                                            Contained Gold,
    Shell, g/t Au         Tonnes            Grade, g/t          ounces
    -------------------------------------------------------------------------
    1.0 to 2.5    11,800,000 to 2,300,000   2.0 to 4.0    765,000 to 290,000
    -------------------------------------------------------------------------
    3.0 to 5.0      1,500,000 to 250,000    4.6 to 8.6     225,000 to 70,000
    -------------------------------------------------------------------------
    

During the summer and fall of 2008, Augen Gold conducted a prospecting program that covered the entire property, and confirmed the presence of numerous historical gold occurrences. Assays ranged up to 270.0 g/t Au (7.87 opt Au) (News Release Feb 27, 2009).

Augen Gold is currently in the midst of an exploration program consisting of line-cutting, ground geophysical surveys and diamond drilling, as follow-up to this prospecting program. The program started in late September 2009 and as of late-January 2010, approximately 200 line kilometres of induced polarization-resistivity, magnetometer and VLF-EM surveying and twenty-eight drill holes totalling over 4,000 metres have been completed.

Numerous geological\geophysical targets remain untested in a broad area one to six kilometres east of the Jerome Mine where deformation zones strike towards the mine, or immediately north of the mine, and in a structural corridor fifteen to twenty kilometres southeast of the Jerome Mine, in the eastern part of the property. This area is aligned between the Jerome Mine and several prominent gold deposits on adjacent competitor ground.

Sample Processing

All core was photographed, measured and logged geologically and geophysically. Alteration zones and significant quartz veins or sulphide-bearing intervals are marked for sampling and sawn in half. Standard samples are inserted at regular intervals. Half of the sawn core is retained and half taken directly by Augen Gold personnel to ALS Chemex's preparation laboratory in Timmins. There, it is crushed and pulverized and pulps forwarded to Chemex's analytical laboratories for gold assay and multi-element trace geochemical analysis. Random samples are riffle split after crushing and each pulverized split is analysed. Gold is determined by fire assay AAS on 30 gram charges. Samples reporting more than 10 g/t Au were re-analyzed by the Fire Assay-gravimetric method to produce the reported values, also using 30 gram charges. Trace elements are determined using a four-acid 'total digestion' followed by ICP. Drill core is stored in core racks at the Jerome Mine site and Watershed.

Gordon McRoberts, M.Sc., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.

About Augen Gold

Augen Gold is a gold exploration company with 24,581 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 kilometer 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 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.

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) 479-3300, Toll-free: 1-888-442-8436

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AUGEN GOLD CORP.

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