Mr. Allen Lone reports

AUGUSTA PROVIDES UPDATES

Augusta Industries Inc. has provided a general update.

Clean growth program

Further to its press release of March 5, 2018, the corporation reports that the letter of intent that was submitted by its wholly owned subsidiary, Fox-Tek Canada Inc., to the green growth program was not chosen as one of the 100 proposals to proceed to the full project proposal stage.

The clean growth program covers five areas focused on pressing environmental challenges and economic opportunities facing Canada's natural resource operations:

• Reducing greenhouse gas and air-polluting emissions;
• Minimizing landscape disturbances and improving waste management;
• The production and use of advanced materials and bio-products;
• Efficient energy use and productivity;
• Educing water use and impacts on aquatic ecosystems.

The program received approximately 750 proposals, and, of these, only 400 proposals were selected for expert evaluation, of which Fox-Tek's proposal, which was focused on landscape disturbances and waste management in the energy sector, was one of those chosen. Of the 400 proposals, only 100 were invited to participate in the full project proposal stage. Due to the high number of quality submissions received by the glean growth program, Fox-Tek's proposal was not on the 100 asked to proceed to the next stage.

Although the Fox-Tek proposal will not be participating in the full project proposal stage, it was identified, at the expert evaluation stage, as being a project having substantial merit. As such, the clean growth program has notified Fox-Tek that it will be introducing the company's proposal to the clean growth hub and other federal and/or provincial programs with the intention of securing government funding to proceed with its proposal.

The clean growth hub is a "whole-of-government" focal point for the government of Canada's clean technology ecosystem focused on supporting companies and projects.

Shareholders meeting

The corporation is pleased to announce that, at its annual and special shareholders meeting held on July 11, 2018, the shareholders approved the following matters:

• The appointment of Allen Lone, Warren Goldberg, Tony Boogmans, Steve Ewaskiw and Jay Vieira as directors;
• The appointment of Wasserman Ramsay, chartered accountants, as the auditor of the corporation;
• The ratification of the corporation's stock option plan;
• The proposed change of business of the corporation from an industrial issuer to an investment issuer;
• The proposed change of the corporation's name from its current form to IntellaEquity Inc.;
• The proposed sale of all of the issued and outstanding securities of Fox-Tek to Mooncor Oil & Gas Corp., pursuant to an amalgamation agreement dated June 11, 2018;
• The proposed consolidation of the corporation's issued and outstanding common shares on a one-for-up-to-20 basis;
• The proposed delisting of the corporation's common shares from the TSX Venture Exchange and the listing of its shares for trading through the facilities of the Canadian Securities Exchange.

The corporation would like to thank all of its shareholders that voted their shares in favour of the matters presented, and the corporation will provide updates on the matters as they become available.

Extension of warrants

The corporation will also like to announce that it has received TSX Venture Exchange approval, and, as of July 14, 2018, the expiry date of the 20.2 million common share purchase warrants of the corporation was extended 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 shares 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. 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 United States 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 bending/buckling, and process pressure and temperature.

Paragon has the potential to unlock substantial new opportunities capable of impacting the business of Marcon.

We seek Safe Harbor.