Mr. Allen Lone reports

AUGUSTA THROUGH ITS SUB FOX-TEK RECEIVES A CONTRACT FOR AN APPLICATION IN THE NUCLEAR SPACE

Augusta Industries Inc. has received a contract for phase 1 (a proof-of-concept application) in the nuclear space. For this application, Fox-Tek Canada Inc. will look at the use of its high-precision fibre Bragg grating (FBG) acquisition equipment to measure very small changes in strain in injector ports.

If successful, the technology will be incorporated within the end-user's injection control system to verify (in real time) that the injection ports are not clogged. This will be part of a safety program due to the material being transported to the injectors. A failure of the injectors could lead to a hazardous situation.

The proof-of-concept will demonstrate that the technology will be able to measure minute changes in pressure in a test pipe. A number of FBG sensors will be mounted on the test spool for validation of the technology.

"This is an example of the corporation's strategy to expand our bandwidth and offering new technologies and concepts. We pursuing markets untapped in the past with new concepts and applications in the industrial nuclear arena," commented Allen Lone, president and chief executive officer of the corporation. "This contract represent a first big step toward serving a new market and an exciting space for the corporation."

About Augusta Industries Inc.

Through its wholly owned subsidiaries, Marcon International Inc. and Fox-Tek Canada, the company 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.

Fox-Tek provides world-leading solutions to various sectors, including the oil and gas industry, including fibre optic sensors and electric field mapping systems.

We seek Safe Harbor.