Mr. Allen Lone reports

AUGUSTA PROVIDES SALES UPDATE

Augusta Industries Inc.'s wholly owned subsidiary, Marcon International Inc., has entered into new agreements with various departments of the U.S. government for the supply of instrumentation and equipment. The aggregate value of the agreement entered into was $1,318,428.07. The current backlog of orders, including these new contracts, is $1,569,762.38 as of Aug. 31, 2016.

"The continued efforts and hard work of the corporation's sales staff have resulted in the corporation entering into these new agreements with various entities of the U.S. government," stated Allen Lone, president of the corporation. "The corporation's sales strategy has result[ed] in increased sales and continued growth. While the corporation is building long-term strategic partnerships in the oil and gas industry and the pipeline space, we maintained a strategy to continue driving new sales and maintaining positive cash flow. [Two thousand sixteen] has been the first year the corporation has been able to [deliver] back-to-back quarters of positive cash flow, and the year continues to be financially positive."

About the corporation

Through its wholly owned subsidiaries, Marcon and Fox-Tek Canada Inc., 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.