TORONTO, Dec. 1 /CNW/ - Augen Capital Corp. (the "Augen") (TSX-V: AUG) is pleased to announce consolidated financial results for the third quarter ending September 30, 2005. - Consolidated revenues were unchanged at $0.6 million for the third quarter versus the same quarter ended 2004. Year-to-date consolidated revenues were up 44% to $1.3 million as compared to $0.9 million for the same period in 2004. - Consolidated expenses marginally increased to $0.4 million for the third quarter versus $0.3 million for the same quarter ended 2004. Year-to-date consolidated expenses increased to $1.1 million as compared to $0.7 million for the same period in 2004. - Consolidated net earnings for the quarter was $0.2 million, slightly below $0.3 million for the same quarter last year. - Cash generated from operations amounted to $0.3 million for the quarter and moved up from $0.2 million last year. - Consolidated net assets at September 30, 2005 amounted to $3.2 million offset by $0.3 million of current liabilities. The year over year increase in consolidated revenues for the nine month period ended September 30, 2005 is outlined as follows: Managed Products partnership advisory and performance fees were $81 thousand for the quarter as compared to $50 thousand for the same quarter last year due mainly to the increased assets under management. Consulting and due diligence fee income was $335 thousand slightly below the $386 thousand for the same quarter last year, as the $3.1 million in assets raised in Augen Limited Partnership 2005 generated a similar level of gross setup fee income as the $3.6 million assets raised in Augen Limited Partnership 2004-1 last year. Year-to-date Managed Products revenues were unchanged at $614 thousand. Merchant Banking realized gains on the sale of proprietary investments were up in the third quarter and amounted to $83 thousand as compared to realized gains of $NIL for the same quarter last year. Year-to-date Merchant Banking revenues increased 238% to $650 thousand as compared to $273 thousand for the same period last year. There was $436 thousand in realized gains on the sale of proprietary investments for the current year as compared to $116 thousand in the previous year. Unitholder administration & Corporate Counsel & Secretary services and Occupancy generated first-time YTD income of $180 thousand. These increases were offset by the one-time gain of $150 thousand on the sale of the corporate headquarters in the same quarter last year. The year over year increase in consolidated expenses is primarily the result of Augen's improved corporate presence including the higher operating costs associated with the new headquarters in the heart of the financial district in Toronto, the addition of a new senior management team, and the hiring of key support staff. "The Augen Limited Partnership 2005 offering was closed subsequent to quarter end bringing the total assets raised to $8.4 million, making the offering the most successful raise in Augen's history. The additional assets under administration will provide a stable stream of recurring partnership and advisory fee income, and potential performance fee income," said J. David Mason, Chairman of Augen Capital Corp. "Augen has built a strong foundation over the last twelve months which will be used as the base for substantially growing the core business and adding new product offerings to provide solid returns for our shareholders". About Augen Capital Based in Toronto, Augen 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 $25 million from investors in ten previous limited partnerships. The Company now has over $25 million in assets under management, including a core portfolio of emerging resource stocks, three Resource Flow-Through Limited Partnerships, and its mutual fund, Augen Resource 2 Balance Fund. For more information on Augen Capital, visit our website at www.augencc.com The company's public documents may be accessed at www.sedar.com 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