Mr. Allen Lone reports

AUGUSTA ANNOUNCES RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND AUGUSTA SUBSIDIARY MARCON SIGNS CONTRACTS FOR $516,862.67

Augusta Industries Inc. has released its financial results for the six months ended June 30, 2018.

Summary for six months ended June 30, 2018

For the six months ending June 30, 2018, the corporation had revenues of $2,103,000 as compared with $1,576,000 during the six months ending June 30, 2017.

Total loss for the six months ending June 30, 2018, was $317,000 or a net loss of nil per share compared with a loss of $265,000 or nil per share for the six months ending June 30, 2017. Gross margins for the six months ending June 30, 2018, were 18 per cent compared with 238 for the six months ending June 30, 2016, due to the change in mix between Macron and Fox-Tek sales during the period. The operating expenses in the six months ending June 30, 2018, was less at $587,000 compared with $549,000 for the same period in 2017. Stock-based compensation during the six months ending June 30, 2018, was $55,000 compared with $164,000 during the six months ending June 30, 2017.

Marcon group sales in during the six months ending June 30, 2018, were $1,928,000 compared with $1,286,000 during the six months ending June 30, 2017 -- an increase of $642,000. Sales in Fox-Tek for during the six months ending June 30, 2018, were $175,000 compared with $290,000 sales for the six months ending June 30, 2017 -- a decrease of $115,000.

The financial statements, notes to the financial statements, and management's discussion and analysis for the six months ending June 30, 2018, are available on SEDAR.

Marcon sales update

Augusta Industries' wholly owned subsidiary, Marcon International Inc., has entered into new agreements with various departments of the United States government for the supply of instrumentation and equipment. The aggregate value of the agreement entered into was $516,862.67. The current backlog of orders, including these new contracts, is $989,542.32 as of Aug. 29, 2018.

"The corporation's sales efforts continues to result in increased sales and the corporation will continue to focus on entering into additional contracts and developing additional relationships and opportunities with its existing clients," stated Allen Lone, president of the corporation.

About the corporation

Augusta Industries' wholly owned subsidiary, Marcon International, is an industrial supply contractor servicing the energy sector and a number of U.S. government entities; subsidiary Fox-Tek Canada Inc. develops non-intrusive asset health monitoring sensor systems for the oil and gas market; and subsidiary Paragon Blockchain Inc. seeks to create an ecosystem in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with artificial intelligence data mining tools to pro-actively drive the process. Blockchain technology is of critical importance to Fox-Tek as well particularly the expansion of its non-intrusive technology. The corporation provides a variety of services and products to a number of clients.

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