Mr. Allen Lone reports

AUGUSTA REPORTS RECORD REVENUE FOR THE YEAR ENDED DECEMBER 31, 2016

Augusta Industries Inc. has released its financial results for the year ended Dec. 31, 2016. For the year ended Dec. 31, 2016, the corporation had record revenues of $4,596,000, an increase of $2,478,000, or 117 per cent, as compared with the year ended Dec. 31, 2015.

"We are pleased with the record sales and the financial results for 2016," said Allen Lone, president of the corporation. "The results are an indication of the success that the corporation has had in 2016 and are a true reflection of the corporation's efforts to increase its sales, decrease costs and focus on a growing market."

Other highlights

• Net income before tax for the year ended Dec. 31, 2016, was $6,000 as compared with a loss of $925,000 for the year ended Dec. 31, 2015, an improvement of $931,000.
• Gross profit for the year ended Dec. 31, 2016, was $1,026,000 (22 per cent), an increase of $484,000, or approximately 89 per cent, as compared with $542,000 (26 per cent) for the year ended Dec. 31, 2015.
• The corporation's operating expenses for the year ended Dec. 31, 2016, were $1,019,000, a reduction of $225,000, or 17 per cent, as compared with $1,244,000 for the same period in 2015.

 
            CONSOLIDATED FINANCIAL HIGHLIGHTS
                (in thousands of dollars)

                                       Years ended Dec. 31, 
                                          2016        2015 
                                    
Sales                                  $ 4,596     $ 2,118 
Cost of sales                           (3,570)     (1,576)
Gross profit                             1,026         542 
Expenses      
Research and development                  (155)       (199)
Selling                                    (34)        (48)
General and administrative                (830)       (997)
Total expenses                          (1,019)     (1,244)
Income (loss) before the undernoted          7        (702)
Finance costs                              (18)        (80)
(Loss) on sale of investments                -        (133)
Unrealized gain on investments               -          90 
Foreign exchange gain (loss)                17        (100)
Net income (loss) for the 
year before tax                        $     6     $  (925)

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

About Augusta Industries Inc.

Through its wholly owned subsidiaries, Marcon International Inc. 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.

Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bended/buckling, and process pressure and temperature.

We seek Safe Harbor.