Augen Capital provides update on Augen Gold Corp.

    Shares outstanding: 36,280,614

    TORONTO, Feb. 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce that the preliminary prospectus for Augen Gold Corp.
("Augen Gold") has been filed and receipted by 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 - Structured Products, Augen
Capital and 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.

    About Augen Capital

    Augen Capital Corp. is a Toronto-based public merchant bank specializing
in the financing of and investment in emerging resource companies. Augen
manages a merchant banking hard dollar portfolio of emerging resource stocks
including private companies and is an industry performance leader in
tax-advantaged flow-through investments in Canada's resource sector having
raised over $58 million in flow-through limited partnership assets since
inception. Augen currently has $38 million in flow-through investment
consulting assets, including $36 million raised since 2007 by Augen and its
sales and distribution partner. Augen holds over one hundred gold, base metals
and uranium exploration and development public and private companies with
direct holdings in its merchant banking portfolio and consulting assets in
flow-through limited partnerships.
    For more information on Augen Capital, visit our website at
    The company's public documents may be accessed at

    The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.
    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: 00008335E

For further information:

For further information: Michael G. Fowler, President - Structured
Products, Augen Capital, President, Augen Gold Corp., Tel: (416) 777-2007, Ext
224, Toll-free: 888-442-8436, Ext 224

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