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TORONTO, ONTARIO--(Marketwire - Dec. 15, 2010) - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) announced today that it has entered into a letter of intent (LOI) effective December 14, 2010, with Vancouver-based Sanatana Diamonds Inc. (TSX VENTURE:STA) a well-managed emerging resource company, for a proposed Option and Joint Venture Agreement ("the Agreement") to acquire up to 51% undivided interest in the rights to certain mineral claims in Chester, Yeo, Neville, and Benneweis townships in Ontario. These claims exclude those depicted in the map entitled "WCote with Planned Drill Holes" (posted on Augen Gold's website,


Sanatana has agreed to spend $5 million on these claims over the next three years and provide cash plus 5,000,000 shares in Sanatana as payment for the option. The proposed Agreement is subject to, among other things, the completion of satisfactory due diligence, the negotiation and execution of a definitive agreement, approval of the boards of both parties, and approval of the TSX-V; the parties have agreed to execute this definitive agreement on or before February 15, 2011. The proposed Agreement is an arm's-length transaction and is not expected to require shareholder ratification.


Augen Gold has been successful in raising approximately $9.1 million in 2010 and is focused on achieving its exploration milestones. Since inception in October 2006, the Company has raised more than $20 million for the South Swayze Project.



About Sanatana Diamonds Inc.



Sanatana Diamonds Inc. is an exploration stage company with projects in the North West Territories and the Yukon. The Company has an experienced management team and Board of Directors. Sanatana Diamonds, headquartered in Vancouver, is listed on the TSX Venture Exchange (TSX VENTURE:STA).



About Augen Gold



Augen Gold is a gold exploration company with 23,685 hectares of staked and patented mining claims in the Southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The claims cover a 45-kilometre long section of the Ridout Deformation Zone, believed to be the western extension of the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the major gold camps of Timmins and Kirkland Lake, and the claims contain numerous gold showings that have received very little historical exploration. Augen Gold is the first company to have assembled such a coherent ground position. Augen Gold has performed a detailed airborne geophysical survey over the whole area, and its sampling program has confirmed the historically reported gold values. The correlation of many gold showings with geophysical features indicates excellent potential for the discovery of additional deposits. The Company's objectives are to aggressively explore the gold showings that correlate with geophysical anomalies, continue resource definition at the Jerome Mine, and to expand its property portfolio with highly prospective mineral assets.


For more information on the South Swayze Project, please refer to the Company's NI 43-101 compliant technical report "Amended and Restated Technical Report on the Augen Gold Corp. Claims, Porcupine Mining Division, District of Sudbury, Ontario, Canada" (effective April 8, 2008 available on the Company's profile at >www.augengold.ca.


The Company's documents may be accessed at http://www.sedar.com/">www.sedar.com.