Mr. Allen Lone reports

AUGUSTA INDUSTRIES INC.: UPDATE

Augusta Industries Inc. has provided an update with respect to its operations. Despite the record revenues for the six months ending June 30, 2016, as disclosed in the corporation's press release of Aug. 23, 2015, the corporation continues to improve its operational efficiencies and explore various options in an effort to further reduce its operating expenses. In addition, the corporation has been approached by various arm's-length third parties expressing interest in purchasing certain assets. Management is currently exploring the possibility of vending certain assets to maximize shareholder value. The corporation has had very preliminary discussions pertaining to the sale of certain assets and there can be no assurance that any agreement will be reached. The corporation will continue to keep the market informed in respect of these various matters.

We seek Safe Harbor.