Mr. Allen Lone reports

AUGUSTA ANNOUNCES INSTALLATION OF LARGE EFM SYSTEM AND NON-BROKERED PRIVATE PLACEMENT

Augusta Industries Inc.'s wholly owned subsidiary Fox-Tek Canada Inc. has sent a technical team to install one of Fox-Tek's largest electric field mapping (EFM) systems to monitor a key asset in one of Enbridge Inc.'s Canadian facilities.

The EFM system, consisting of a 200-pin sensor array, is a custom system that is three times the size of Fox-Tek's standard system. The EFM system will be used in the monitoring of potential internal wall loss around the girth weld of a 30-inch pipe. This continuous system will wirelessly send data to Fox-Tek's data vault, where the data will be analyzed and presented to Enbridge via a secure Web portal. Over time, the data will be correlated with other data to better understand the integrity of the monitored location and, more importantly, to validate the existing mitigation program.

"This EFM system is the second system of its kind supplied to Enbridge for monitoring all or portions of a large girth weld, and this success is an example of the corporation's history of being able to provide custom solutions to its clients, both domestically and internationally," commented Allen Lone, president and chief executive officer of the corporation.

The corporation's mandate has been to focus on the international market to attract new clients and focus on large projects. The corporation is working toward establishing a strong presence in the United States and is reviewing its options on how to accomplish this goal. The intention is to set up a sales and business development office in Houston, Tex., by recruiting local talent from the industry in general and specifically the space of integrity.

The corporation would also like to announce that it intends to raise gross proceeds of up to $1-million through a non-brokered private placement of up to 20 million units of the company at a price of five cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of seven cents for a period of three years from the date of issuance. A finder's fee may be paid by the company in connection with the private placement.

The non-brokered private placement is subject to all necessary regulatory approvals. The securities being issued in the private placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The corporation intends to use the net proceeds for general working capital.

We seek Safe Harbor.