Augen Reports Strong First Close in 2007 Limited Partnership Offering and Director Changes for Structured Products Division



    Shares outstanding: 35,915,615

    TORONTO, April 3 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce the first close of $7.1 million on March 30, 2007 for
Augen Limited Partnership 2007 ("LP2007"). It is anticipated that a second
closing will take place prior to April 30, 2007.
    LP2007 is a resource flow-through prospectus with a maximum offering of
$30,000,000. The investment objectives are to: (a) achieve capital
appreciation, and (b) maximize tax benefits for investors by purchasing
flow-through shares of select resource companies. LP2007 intends to focus on
emerging and mid-capitalization mining resource companies, with some oil and
gas investments.
    LP 2007 is being offered by a syndicate of agents co-led by Berkshire
Securities Inc. and National Bank Financial Inc. which includes Canaccord
Capital Corporation, HSBC Securities (Canada) Inc., IPC Securities
Corporation, Queensbury Securities Inc., Raymond James Ltd., Research Capital
Corporation, Blackmont Capital Inc., Desjardins Securities Inc., Industrial
Alliance Securities Inc., Acadian Securities Inc., Burgeonvest Securities
Limited, Northern Securities Inc. and Sora Group Wealth Advisors Inc.
    Augen is also pleased to announce that Limited Partnership 2005
("LP2005") was rolled into Augen Resource Strategy Fund ("Augen RSF") on
February 9, 2007 with a Net Asset Value on the rollover date of $150.84 per
$100 invested, excluding tax benefits. LP2005 is one of the best-performing
flow-through offerings in the industry. Tax benefits include up to a 100%
investment deduction and a federal tax credit of approximately 12%. The
after-tax break-even point, after capital gains tax, is approximately 60% of
the initial investment for an Ontario resident.
    Augen is also pleased to announce changes to the Board of Directors of
Augen LP2007, LP2006, and LP2006-1 and Augen RSF. Effective immediately, the
executive directors comprised of J David Mason, Ian C Peres and Ronald K Mann
have resigned and been replaced by independent directors comprised of George
D. Elliot, Eric W. Slavens, Hugh Squair, and Rhoderic Whyte. Daniel T. Mason
continues as a Director of Augen RSF.
    "We are pleased to report a strong first close for the Augen LP2007
offering and we consider the installation of a fully independent Board of
Directors for Structured Products to be a positive development for our
investors," said Ronald K. Mann, Vice-President, Business Development.

    About Augen Capital

    Augen Capital is a Toronto based merchant bank which finances early stage
resource companies. Augen is an industry leader in tax-advantaged flow-through
investments in Canada's resource sectors having raised over $47 million in
flow-through limited partnership assets in the last five years. Augen manages
a core portfolio of emerging resource stocks, two Resource Flow-Through
Limited Partnerships, and its mutual fund, Augen Resource Strategy Fund.

    The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.

    This news release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations as
disclosed in the Company's documents filed from time to time with applicable
Canadian securities regulators and the United States Securities & Exchange
Commission.

    %SEDAR: 00008335E




For further information:

For further information: Ronald K. Mann, Vice-President, Business
Development, Tel: (416) 777-2007 ext 223, investorrelations@augencc.com; For
more information on Augen, visit our website at www.augencc.com; The Company's
public documents may be accessed at www.sedar.com

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