The Board of Directors of Augen Gold Corp. ("Augen Gold" or the "Company") (TSX
VENTURE:GLD) announces that it has become aware that information relevant to
shareholders is circulating in the market in relation to a proposed improvement
in the offer made by Trelawney Mining and Exploration Inc. ("Trelawney") to
acquire all of the outstanding common shares of Augen Gold (the "Original
Offer").


Augen Gold can confirm Trelawney approached Augen Gold, at a meeting arranged by
a shareholder on August 5, 2011, with a proposed offer to materially increase
the consideration payable to Augen Gold shareholders (the "Proposed Revised
Offer"). The meeting was followed up by correspondence describing the terms of
the Proposed Revised Offer. The correspondence purported to make the Revised
Offer available until 5:00 p.m. on Monday, August 8, 2011.


The special committee of the board of directors of Augen Gold wrote to Trelawney
promptly upon receipt of the Proposed Revised Offer, and in advance of
Trelawney's proposed expiry time, to attempt to engage in market-typical
confirmatory diligence and negotiation of a support agreement to determine if a
basis for a friendly transaction could be reached in relation to the Proposed
Revised Offer. Trelawney failed prior to the expiry time, and has to date failed
or refused, to comment in any meaningful way on the draft confidentiality
agreement provided by Augen Gold, and has not provided any proposed form of
support agreement as a basis for discussions.


While Trelawney has, apparently, failed to engage in a typical process, it has
come to the attention of Augen Gold that the details of the meeting and some of
the terms of the Proposed Revised Offer have been circulating between certain
media outlets and third parties. Augen Gold has concluded that all shareholders
of Augen Gold need to know the facts which appear to be circulating.


TRELAWNEY CLEARLY HAS CONCLUDED THAT AUGEN GOLD IS WORTH MORE THAN IT ORIGINALLY
OFFERED.


SHAREHOLDERS ARE CAUTIONED THAT, IF THEY SIGN LOCK-UP AGREEMENTS OR TENDER TO
THE ORIGINAL OFFER, THEY MAY BE UNABLE TO CAUSE TELAWNEY TO OFFER ALL
SHAREHOLDERS THE INCREASE IN VALUE CONTEMPLATED BY THE PROPOSED REVISED OFFER.


Current Recommendation

In the Augen Gold Director' Circular dated July 26, 2011 (the "Directors'
Circular"), Augen Gold's board of directors recommended that Augen Gold
shareholders reject the Original Offer.


If the Proposed Revised Offer is publicly made to Augen Gold shareholders, the
board of directors of Augen Gold expects to consider the full terms of such
offer and issue a notice of change in relation to the Directors' Circular.




If you have any questions or concerns, please contact Phoenix Advisory      
Partners, Augen Gold's information agent, at:                               
North American Toll Free Phone: 1-866-521-4425                              
Email: inquiries@phoenixadvisorypartners.com                                
Toll Free Facsimile: 1-877-907-3176                                         
Banks, Brokers and Collect Calls: 1-201-806-2222                            



About Augen Gold

Augen Gold is a gold exploration company with 23,685 hectares of staked and
patented mining claims in the Southern Swayze Greenstone Belt, including the
formerly producing Jerome Gold Mine. The claims cover a 45-kilometre long
section of the Ridout Deformation Zone, believed to be the western extension of
the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the
major gold camps of Timmins and Kirkland Lake, and the claims contain numerous
gold showings that have received very little historical exploration. Augen Gold
is the first company to have assembled such a coherent ground position. Augen
Gold has performed a detailed airborne geophysical survey over the whole area.
The correlation of many gold showings with geophysical features indicates
excellent potential for the discovery of additional deposits. On July 18, 2011
Augen Gold announced an initial National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") compliant Mineral Resource
estimate at Augen Gold's Jerome Mine Project outlining a 1.03 million ounce
Inferred gold resource (18.7 million tonnes grading 1.7 g/t) at a cutoff grade
of 0.3 g/t. The Company's objectives are to aggressively explore the gold
showings that correlate with geophysical anomalies, continue resource definition
at the Jerome Mine, and to expand its property portfolio with highly prospective
mineral assets.


For more information on the Southern Swayze Project, please refer to the
Company's NI 43-101 compliant technical report "Amended and Restated Technical
Report on the Augen Gold Corp. Claims, Porcupine Mining Division, District of
Sudbury, Ontario, Canada" (effective April 8, 2008, available on the Company's
profile at www.sedar.com, along with the Company's other continuous disclosure
documents).


The information contained in this news release has been approved by Augen Gold's
Project Geologist, Gordon McRoberts, P.Geo., who is a Qualified Person as
defined in NI 43-101.


For more information on Augen Gold, visit our website at www.augengold.ca.

Follow our blog at www.augengold.wordpress.com, and follow us on www.twitter.com
(#augengoldcorp).


This news release contains forward-looking statements. These statements are
based on information currently available to the Company and the Company provides
no assurance that actual results will meet management's expectations.
Forward-looking statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the effect that
the Company or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as "believes",
"anticipates", "expects", "estimates", "may", "could", "would", "will", or
"plan". Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of the Company's
mineral properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements for many
reasons such as: changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for minerals; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties encountered
in connection with the activities of the Company; and other matters discussed in
this news release. This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements. These and other factors should
be considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to update
any forward-looking statement that may be made from time to time by the Company
or on its behalf, except in accordance with applicable securities laws.


Shares outstanding: 143,105,036
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