Mr. Allen Lone reports

AUGUSTA EXECUTES MEMORANDUM OF UNDERSTANDING

At the recent fourth Ontario-China Research and Development and Commercialization Collaboration Forum, held in Toronto, Fox-Tek Canada Inc., a wholly owned subsidiary of Augusta Industries Inc., has executed a memorandum of understanding with Shandong Fukesi-Taike Pipeline Engineering and Technology Ltd. and Laser Institute of Shandong Academy of Science. The signing ceremony for the memorandum of understanding was attended by a number of officials from China and Ontario, notably Deborah Matthews, deputy premier, government of Ontario; Sun Wei, executive vice-governor, Shandong province; and Xue Bin, the consulate general of China in Toronto.

The purpose of the memorandum of understanding is to set out and identify the roles and responsibilities of each party as they relate to:

• The promotion, marketing and sale of the corporation's various products and technology in the People's Republic of China, with a particular emphasis in Shandong province;
• Deploying the corporation's various products and technology in China and Shandong province for the purpose of achieving greater efficiencies and increasing safety standards, which will directly benefit the citizens of China and Shandong province; and
• The enhancement and furtherment of business and technology collaboration and communication between Canada and China.

"We are pleased and excited with the execution of the memorandum of understanding with our partners," said Allen Lone, the president and chief executive officer of the corporation. "The memorandum of understanding is the first step towards the corporation entering into a formal agreement with Shandong Fukesi-Taike Pipeline Engineering and Technology Ltd. and Laser Institute of Shandong Academy of Science, which will allow the corporation, working closely with its partners, to begin marketing and selling its products and services in China, with a particular focus of Shandong province. This is an exciting opportunity for the corporation as it has the potential of opening one of the largest markets to the corporation's products."

We seek Safe Harbor.