Mr. Allen Lone reports

FOX-TEK COMPLETES TESTING AND REPORTS FINDINGS TO CLIENT IN INDIA AND AUGUSTA TO EXTEND TERM OF WARRANTS

Augusta Industries Inc.'s wholly owned subsidiary, Fox-Tek Canada Inc., has received a small test plate from the corporation's agent in India to test and provided a report to a client.

The objective of the test and report was to show conclusively that Fox-Tek's EFM technology can work with a typical vessel wall where the inside surface has a number of stellite layers added. Two methods were used to measure both the baseline thickness of the sample: Firstly, a standard UT tool was used to measure the baseline thickness of the plate. Secondly, for the rest of the tests, a small EFM array was installed on the non-stellite side of the plate. A small test plate (roughly six inches by six inches) was provided to Fox-Tek by its agent on behalf of the client. One side of the test plate had layers of stellite welded on. This test sample represents a small sample of an actual issue where the inside material is eroded by the process internal to the vessel.

Fox-Tek was able to successfully demonstrate that it is possible to perform a baseline reading of the starting thickness of the provided sample using a precision ultrasonic measuring instrument. This was followed by three phases of material removal from the stellite side of the plate while an EFM unit was used to measure the changes over time.

Fox-Tek prepared a report summarizing its findings from the testing and has forwarded same to its agent and client. Fox-Tek will be working with its agent and the client in order to move this project forward.

Subject to the receipt of TSX Venture Exchange, Augusta Industries has agreed to amend the expiry date of the 20.2 million common share purchase warrants of the corporation from July 14, 2018, to July 14, 2020.

The warrants, which were originally issued on July 14, 2015, were issued pursuant to the corporation's private placement offering of 20.2 million units. Each unit comprised one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share at an exercise price of seven cents per share at any time until close of business on July 14, 2018.

Each warrant, as amended, will entitle the holder thereof to purchase one common share of the corporation at any time until the close of business on July 14, 2020, at an exercise price of seven cents per common share.

The warrants will be amended, effective July 14, 2018, to extend the term of the warrants until July 14, 2020. All other provisions of the warrants will remain the same.

About Augusta Industries Inc.

Through its wholly owned subsidiaries, Marcon International Inc., Paragon Blockchain Inc. and Fox-Tek, 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).

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 bending/buckling, and process pressure and temperature.

We seek Safe Harbor.