Mr. Allen Lone reports

AUGUSTA PROVIDES SALES UPDATE AND ANNOUNCES GRANTING OF OPTIONS

Augusta Industries Inc.'s wholly owned subsidiary, Marcon International Inc., has been awarded contracts from various departments of the United States government for the supply of instrumentation and equipment. The aggregate value of the contracts awarded was $246,755.17 in January, 2017. The current backlog of orders, including these new contracts, is $776,749.22 as of Jan. 31, 2017.

"The corporation's continuing success in securing new contracts with various entities of the United States government is proof of the efforts and hard work of the corporation's sales staff," stated Allen Lone, president of the corporation. "The awarding of these new contracts is proof of the success of the corporation's sales strategy that has resulted in increased sales and continued growth."

The corporation would also like to announce that that it has granted an aggregate of 11.5 million stock options to its directors, officers and arm's-length consultants. Each option is exercisable at 10 cents per common share at any time until Jan. 30, 2022.

About Augusta Industries Inc.

Through its wholly owned subsidiaries, Marcon and Fox-Tek Canada Inc., the corporation provides a variety of services and products to a number of clients.

Marcon is an industrial supply contractor servicing the energy sector and a number of U.S. government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (electrical, mechanical and instrumentation). In addition to departments and agencies of the U.S. government, Marcon's major clients include Saudi Arabia-Sabic Services (refining and petrochemical), Bahrain National Gas Co., Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.

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