Mr. Allen Lone reports

AUGUSTA INDUSTRIES SUBSIDIARY PARAGON BLOCKCHAIN ENTERS INTO AN MOU WITH ONE OF THE WORLDS' FIRST BIG DATA ENTERPRISE BLOCKCHAIN APPLICATION DEVELOPERS

Pursuant to Augusta Industries Inc.'s press release of Jan. 25, in which the company announced the creation of a wholly owned subsidiary (Paragon Blockchain Inc.) to commence the process of implementing blockchain technology, Paragon Blockchain has entered into a memorandum of understanding with an undisclosed blockchain company (UBC) to advise and develop a new set of blockchain applications for Augusta.

Blockchain applications to include artificial intelligence

The UBC is one of the world's first developers of a hybrid permission-based blockchain protocol with big data capability. The UBC will act as technical adviser and initiate the process of developing a new set of blockchain applications that will integrate, amongst other things, artificial intelligence for the purpose of sorting critical procurement opportunities within United States government agencies for Augusta's wholly owned subsidiary, Marcon International Inc.

Implementing blockchain in Marcon

Blockchain technology has the potential to unlock substantial new opportunities capable of impacting the business of Marcon International. Specifically, Marcon seeks to create an ecosystem (Paragon Blockchain) in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with AI data mining tools to pro-actively drive the process. By doing so, Paragon Blockchain becomes a value-added network, in which vendors and subcontractors provide offers on projects of immediate interest, as opposed to the current role of Marcon selecting projects of interest.

Users will be required to access Paragon Blockchain and make payments through the use of a digital currency or tokens.

Implementing blockchain in FOX-TEK

Blockchain technology is of critical importance to the company's wholly owned subsidiary, FOX-TEK Canada Inc., continued expansion of its non-intrusive technology in the oil and gas industry, in which its clients include many of the biggest companies in the world. FOX-TEK believes a common system of record connecting data collected for events is of paramount importance to clients.

The company will create a platform that will allow for the analysis of data that incorporates an auditing system built for regulatory and quality assurance oversight. The platform will implement a distributed blockchain ledger using smart contracts. These smart contracts provide customization of blockchain data.

Upon completion, the company intends to invite other technology companies to participate and utilize its blockchain. These companies will be involved in industries serving pipeline operations, integrity, maintenance and construction, as well as federal, provincial, and state regulators. By participating in the company's blockchain, these entities will have access to surveillance, auditing, integrity, and transparent data in cases of breaches in corrosion or leaks or cracks.

FOX-TEK will naturally be the first service provider to participate. DMAT servers currently hosts DMAT client at 15 gigabytes live running DMAT Web server: five GB live and DMAT raw data: 15 GB.

Blockchain serves as the next technological revolution for storing and sharing distributed data from multiple input sources. This will provide the company with the capability to transfer any digital data between multiple participants in a secure and auditable fashion.

About Augusta Industries Inc.

Through its wholly owned subsidiaries, Marcon International Inc. and FOX-TEK, Augusta Industries 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 United States government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment.

We seek Safe Harbor.