Mr. Allen Lone reports

AUGUSTA RECEIVES CONTRACT TO DEVELOP NEW APPLICATION OF ITS EFM TECHNOLOGY

Fox-Tek Canada Inc., Augusta Industries Inc.'s wholly owned subsidiary, has received a contract to develop a laboratory version of its electric field mapping (EFM) technology, to be used in a nuclear facility. Upon successful completion of this project, the client has indicated that there is a possibility of ordering more units to replace existing equipment.

The new EFM equipment is specifically designed for the use in research/experimental environment, where a need for accurate material changes is required. Unlike Fox-Tek's standard EFM units that are fully autonomous, these units will require a user to take readings. As such, a computer interface tool is being developed to ensure that the user is able to quickly configure the system for a particular application. Fox-Tek will continue to make its DMAT tools suite available to clients that might require more help to analyze their data.

This new development will help to open new potential markets, including universities, industrial research groups and testing labs that are looking for novel techniques to measure changes in materials due to corrosion/erosion.

We seek Safe Harbor.