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TORONTO, ONTARIO--(Marketwire - Jan. 17, 2011) - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) announced today that it has raised $5,308,875.50 as a result of the acceleration of the remaining 22,089,957 warrants to purchase common shares of the Company, issued on May 14, 2010 and May 20, 2010 as part of a private placement of flow-though units and units of the Company.


"Shareholder response was extremely positive, and serves to emphasize investors' belief in the direction Augen Gold's management is taking," said J. David Mason, president and CEO of Augen Gold. "Most importantly, the proceeds will enable GLD to expand its current aggressive drilling program to at least 10,000 metres, targeting two areas: the mineral-rich North Shore of Lake Opeepesway and the area west of Cote Lake, contiguous with Trelawney's multi-million-ounce discovery."


21,235,502 or 96.1 percent of the accelerated warrants were exercised, and, in fact, another 1,620,000 warrants from different issues were also exercised, providing additional proceeds of $340,000. The net proceeds of the Warrants will be used to fund the Company's exploration initiatives and for working capital purposes.


Each Warrant entitled the holder to purchase one Common Share at a price of $0.25 per share. The Warrants were originally set to expire on November 14, 2011, and instead expired January 7, 2011. (Please see GLD's press release dated 3 December 2010.)


Augen Gold was successful in raising approximately $14.8 million through 2010 to date, and is focused on achieving its exploration milestones. Since inception in October 2006, the Company has raised more than $25 million for the South Swayze Project.



About Augen Gold



Augen Gold is a gold exploration and development 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 >www.augengold.ca