Mr. Allen Lone reports

AUGUSTA EXECUTES MEMORANDUM OF UNDERSTANDING WITH MITSUBISHI

Further to its press release of April 21, 2016, FOX-TEK Canada Inc., Augusta Industries Inc.'s wholly owned subsidiary, has entered into a memorandum of understanding with Mitsubishi Heavy Industries America Inc., an affiliate company of Mitsubishi Heavy Industries Ltd. based in Japan.

Pursuant to the terms of the MOU, FOX-TEK will be partnering with Mitsubishi with respect to its plans to design and build a commercial-grade pilot monitoring system for waste water treatment.

Upon the successful completion of the pilot program, FOX-TEK will enter into a definitive licensing agreement with Mitsubishi for its DMAT software solution. The approximate value of the licensing agreement will be $1.25-million (U.S.) over the term of the agreement. The terms of the licensing agreement will be agreed to by the parties upon the completion of the pilot program.

"We believe that both Mitsubishi and FOX-TEK will bring to clients a technology that will have a great potential," said Allen Lone, chief executive officer of Augusta Industries. "We are thrilled to move forward with such a project, this being one of many other potential opportunities that both companies will explore further."

We seek Safe Harbor.