Augen Files December 31, 2004 Audited Financial Statements

TORONTO, May 16 /CNW/ - Augen Capital Corp. (the "Company") (TSX-V: AUG)
is pleased to announce that, further to the Company's press release of
April 29, 2005 announcing the delay, it has filed its audited annual financial
statements for the year ended December 31, 2004.
The Company reported a strong balance sheet at December 31, 2004, with a
current ratio of 3.5 times, a 133% increase in the proprietary resource
investment portfolio to $1.4 million, and the extinguishment of long-term debt
of $0.2 million. With this strong financial position and substantial
liquidity, the Company is well-positioned to be responsive to new
opportunities and to create long-term shareholder value.
The Company also reported revenue growth of 219% to $1.8 million,
including gains on sale of investments of $0.2 million, and a gain on disposal
of property of $0.1 million. Partnership advisory and performance fees grew by
392% to $0.8 million while Consulting and Due Diligence fees climbed 171% to
$0.6 million, primarily due to the most successful limited partnership raise
in the Company's history for Augen Limited Partnership 2004-1.
The temporary management cease-trading order, requested by management
from the Ontario Securities Commission and other Canadian securities
regulatory authorities that prohibited certain directors and officers of Augen
from trading in securities of the Company, lapses effective May 16, 2005.

About Augen Capital

Based in Toronto, Augen Capital is a merchant bank specializing in the
financing of, and investment in, early stage resource companies and is an
industry leader in tax-advantaged flow-through investments in Canada's
resource sectors. Augen has raised over $20 million from investors in ten
previous limited partnerships. The Company now has over $15 million in assets
under management, including a core portfolio of emerging resource stocks, two
Resource Flow-Through Limited Partnerships, and its mutual fund, Augen
Resource 2 Balance Fund.
Augen Limited Partnership 2005 is now available for sale - please contact
your advisor or Augen investor relations for a marketing package. Augen
Limited Partnership 2004-1 continues to be one of the industry leaders in
terms of performance.

On behalf of the Board of Directors,

"J. David Mason"
J. David Mason, Chairman

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

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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.