Augen Capital reports positive developments for shareholders

    Shares outstanding: 36,615,615

    TORONTO, June 16 /CNW/ - Augen Capital Corp. ("Augen" or the "Company")
(TSX-V AUG) today announced two developments that further its progress in
creating value for shareholders.
    Augen Capital's affiliated company, Augen Gold Corp. ("Augen Gold")
(TSX-V AUJ), recently announced that it had completed its initial public
offering ("IPO"), raising a total of $4.33 million, and has been approved to
trade on the TSX-Venture Exchange. Augen Capital holds 16% of Augen Gold
common shares.
    The initial public offering and listing of Augen Gold is significant for
Augen Capital shareholders because the Company's investment in Augen Gold
Corp, which is carried at a cost of $804,790 or $0.20 per share, has
appreciated in market value to $2,828,000 based on the IPO price of $0.70 per
unit for non-flow-through units. The appreciated value will not be reflected
in the results of Augen Capital Corp., as the investment is recorded at cost,
until the shares are sold. While the value of the shares in Augen Gold is
likely to fluctuate, the Company believes that it is a quality junior mining
    More information about Augen Gold, and the drilling program at its Jerome
property in Northern Ontario, is available at The property
includes a previously producing gold mine with numerous geophysical targets
along strike. Drilling results will begin to be reported shortly.
    Augen Capital also announces that 99.05% of votes cast at the May 29,
2008 Annual and Special Meeting of Shareholders for the election of directors,
were voted in support of the Management Nominees. As a result, the Augen
Capital Board of Directors now comprises Chairman J. David Mason, Interim
Chief Executive Officer Michael Fowler, and independent Directors Tony
Busseri, James Kelleher, Roger Muelhaupt and Dr. Hugh Squair. In addition,
99.45% of votes to fix the number of directors supported the Company's plan to
fix the number of directors at six and 98.72% of votes cast were in favour of
the appointment of Smith Nixon LLP, as Augen Capital's auditors.
    "Augen Capital has taken significant strides in moving the Company
forward and creating value for shareholders, despite continued challenging
markets," said J. David Mason, Chairman of Augen Capital. "The Company has a
solid and experienced Board with a strong mandate from shareholders and like
other shareholders of Augen Capital, we look forward to the results of Augen
Gold's drilling program which we expect to be announced soon."

    About Augen Capital

    Augen Capital is a Toronto-based public merchant bank specializing in the
financing of and investment in emerging resource companies. Augen Capital
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 Capital currently has $47 million in flow-through investment
consulting assets, including $28 million raised in 2007 by Augen Capital and
its sales and distribution partner. Augen Capital 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 2007 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.

For further information:

For further information: J. David Mason, Chairman, Tel: (416) 777-2007
Ext. 223,; Michael G. Fowler, Interim Chief
Executive Officer, Tel: (416) 777-2007 Ext. 224

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