Augen announces close of non-brokered private placement

TORONTO, Sept. 30 /CNW/ - Augen Capital Corp. (the "Company") (TSX-V:
AUG) wishes to announce that, further to the news release of August 29, 2005,
it has completed a non-brokered private placement of 2,500,000 units for gross
proceeds of $250,000. Each unit consists of one common share at a price of
$0.10 and one non-transferable common share purchase warrant (the "warrant").
Each warrant entitles the holder to purchase one additional common share (the
"warrant share") of the Company at a price of $0.25 per warrant share for a
period of twenty-four months from the Closing Date. The common shares and
warrants are subject to a four-month hold period ending January 30, 2006. The
Company anticipates paying finder's fees of up to 6% cash and 10% units to
Quest Securities Corp.
The securities to be issued under the additional private placement do not
result in a change in control or a control-voting block. The proceeds of the
private placements will be used for general working capital purposes. The
transaction is subject to regulatory approval.
This placement expands the Company's base of high net worth accredited
investors. Together with the current raise of capital for Augen Limited
Partnership 2005, this placement will lead to more discretionary income to
expand total assets under management.

About Augen Capital

Augen Capital Corp. is a merchant bank specializing in the financing of
early-stage resource companies. Over a six-year period, the Company's
portfolios have outperformed a majority of competitive metal funds as well as
the TSE precious metals index. Through Augen Capital Corp., the public
company, investors indirectly and directly own over 150 emerging resource
companies.
Augen Capital now has more than $20 million under management, including a
core portfolio of emerging resource stocks, three-resource flow-through LPs
under management, and its mutual fund, Augen Resource 2 Balance Fund. Augen is
an industry leader in tax-advantaged flow-through investments in Canada's
resource sectors. Through a distribution force of national MFDA and IDA firms,
Augen offers high income and high net worth individuals resource flow-through
tax shelters, together with exposure to mineral, oil and gas, and exploration
companies that are selected to potentially outperform the market.

The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.

This news release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with the British
Columbia Securities Commission and the United States Securities & Exchange
Commission.
%SEDAR: 00008335E