Mr. Allen Lone reports

AUGUSTA ANNOUNCES RECORD RESULTS FOR THE FIRST QUARTER

Augusta Industries Inc. has released its financial results for the three months ended March 31, 2016. For the three months ended March 31, 2016, the corporation had record revenues of $1,011,000, an increase of $479,000, or 90 per cent, as compared with the three months ended March 31, 2015.

Total comprehensive income for the three months ended March 31, 2016, was $178,000, or a net gain of 0.1 cent per share, an increase of $374,000, or 0.2 cent per share, as compared with a loss of $196,000, or 0.3 cent per share for the three months ended March 31, 2015. Gross margins for the three months ended March 31, 2016, was 45.6 per cent, compared with 35.5 per cent for the three months ended March 31, 2015. The corporation also reduced its operating expenses in the three months ended March 31, 2016, to $279,000 from $299,000 for the same period in 2015.

"The record results for the first quarter of 2016 is an indication of the success that the corporation has experienced in its sales efforts in 2015 and 2016," stated Allen Lone, president of the corporation. "The record revenue was a result of the increased spending of the corporation's current clients and the addition of new clients through the quarter."

                    CONSOLIDATED FINANCIAL HIGHLIGHTS
                                               
                                          March 31, 2016     March 31, 2015

Revenue                                    $   1,011,000      $     532,000
Expenses
Direct costs                               $      550,00      $     343,000
Selling, general and administrative        $     243,000      $     247,000
Research and development                   $      36,000      $      42,000
                                           -------------      -------------
Total expenses                             $     829,000      $     632,000
Other expenses
Finance costs                              $      (4,000)     $     (19,000)
(Loss) on sale of investments                          -      $     (43,000)
Foreign exchange gain (loss)               $      13,000      $     (28,000)
                                           -------------      -------------
                                           $     820,000      $    (732,000)
                                           -------------      -------------
Income before taxes                        $     191,000      $    (200,000)
Income taxes                               $       6,000                  -
Net and comprehensive income               $     185,000      $    (200,000)

The financial statements, notes to the financial statements and management discussion and analysis for the three months ended March 31, 2016, are available on SEDAR.

We seek Safe Harbor.