Augen enters into letter of intent with BluMont Capital

    Shares outstanding: 35,915,615

    TORONTO, June 12 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce that it has entered into a letter of intent with BluMont
Capital ("BluMont"), a wholly-owned subsidiary of Integrated Asset Management
Corp. (TSX: IAM). The terms of the letter of intent are such that Augen will
continue as consultant responsible for the sourcing of mineral flow-through
investments to both the existing flow-through products and to new flow-through
products to be launched by BluMont whereas BluMont will assume the portfolio
management, sales and marketing, and back-office administration functions
relating to Augen's mineral flow-through business.
    Augen's top-tier investment performance on its flow-through limited
partnership offerings since 2002, which has averaged a 93% after-tax rate of
return, will now be complemented by BluMont's national sales force which
specializes in alternative investments. BluMont will also assume the portfolio
manager and back office administration functions.
    Augen will continue to benefit from indirect holdings in these
flow-through investment portfolios. An appropriate revenue sharing arrangement
between Augen and BluMont is contemplated, representing each party's
responsibilities for both existing and future products.
    "Our resource expertise in the mineral flow-through sector is greatly
enhanced with this agreement. Augen shareholders will benefit from expanded
national sales penetration and Augen will now have even greater focus on stock
selection in the emerging resource sector", said J. David Mason, Chairman of
    Augen believes that the agreement should have a substantial positive
impact on future earnings, cash flow and net asset value based on reasonable
sales projections. The transaction is expected to close on July 31, 2007 and
is subject to the negotiation, settlement and execution of a definitive
agreement, approval by the respective boards of directors, and regulatory

    About Augen Capital

    Augen is a Toronto-based merchant bank which primarily invests in early
stage resource companies through its core investment portfolio and is an
industry leader in tax-advantaged mineral flow-through investments in Canada's
resource sector.

    About BluMont Capital

    IAM is Canada's leading alternative asset management company with
approximately $3 billion in assets and committed capital under management in
private corporate debt, private equity, managed futures, real estate
investment management, property management and, through its wholly-owned
subsidiary BluMont Capital, alternative retail investments including hedge
funds and structured products.

    For more information on Augen please visit our website at
    Augen'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. 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: J. David Mason, Chairman, Tel: (416) 777-2007
Ext. 223,

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