Augen signs definitive agreement with BluMont Capital

    TORONTO, Aug. 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce that it has executed a definitive agreement with BluMont
Capital ("BluMont"), a wholly-owned subsidiary of Integrated Asset Management
Corp. (TSX: IAM), pursuant to which Augen has transferred to BluMont the
portfolio management, sales and marketing, and back-office functions of its
flow-through fund business, including Augen Resource Strategy Fund ("Augen
    Augen will continue to act as a flow-through consultant responsible for
the sourcing of mineral flow-through investments to both the existing
flow-through funds and to new Blumont-Augen flow-through funds. The new
flow-through funds will be established by BluMont and will have a mining
focus. BluMont will assume the portfolio management, sales and marketing, and
back-office administration functions relating to Augen's flow-through fund
business including Augen RSF. Subject to unitholder approval, BluMont will
replace Augen in its current role as Manager to Augen RSF.
    Augen will share the management and performance fees payable by existing
and new funds and will share the due diligence fees from the resource issuers
in which the funds invest. The agreement expires on December 31, 2010 unless
extended by BluMont and Augen.
    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. "We are delighted that Augen's top-tier investment
performance on its flow-through limited partnership offerings is now
complemented by a national sales force. Our track record will help with
improved sales penetration which should translate into higher sales levels.
This deal permits Augen to focus on its core expertise - stock selection in
the emerging resource sector and Augen continues to benefit from revenue
streams related to the indirect holdings in these flow-through investment
portfolios," said J. David Mason, Chairman of Augen.

    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 $58 million in
flow-through limited partnership assets since inception. Augen manages a core
portfolio of emerging resource stocks and three resource flow-through Limited
Partnerships. Augen holds over 100 gold, base metals and uranium exploration
and development public companies with direct holdings in its merchant banking
portfolio and indirect holdings in its structured product portfolios.

    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: please contact: J. David Mason, Chairman, Tel:
(416) 777-2007 Ext. 223,

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