TORONTO, ONTARIO--(Marketwire - Nov. 29, 2011) -Augen Capital Corp. ("Augen" or the "Company") (TSX VENTURE:AUG) today announced its interim unaudited consolidated financial results for the third quarter ended September 30, 2011.

In the quarter ended September 30, 2011, the Company reported income of $306,755 compared to loss of $7,571 for the third quarter of 2010. The net loss for the third quarter of 2011 was $210,646 ($0.00 loss per share) compared to net income of $214,640 ($0.01 earnings per share) in the same quarter of 2010. In 2011, the Company reported an unrealized loss on fair value through profit and loss ("FVTPL") investments of $71,161 compared to an unrealized gain of $1,040,652 during the same quarter of 2010.

The Company generates income primarily through the activities of its Merchant Banking ("MB") segment, the strength of which is closely related to global market conditions and the general economic environment. Management believes the current market conditions have become more difficult, especially for junior exploration companies, and has therefore refocused on companies with near term production and cash flow. While the market has improved markedly since the lows of early 2009, the current uncertainty is likely to have a continued impact on the Company's investment portfolio as a result of increased volatility.

The Managed Products ("MP") consulting asset base declined to $NIL at December 31, 2010, and as such, Augen will no longer earn consulting fees on the historic MP consulting assets. Augen has not offered or consulted on any new flow- through limited partnerships since mid-2008.

Consolidated expenses were $438,312 in 2011 compared to $810,743 in 2010. The decrease of $372,431 is primarily due to: Management fee expense was $NIL in 2011 compared to $287,880 in 2010. Effective October 31, 2010, the Company terminated the Management Agreement with OreReserve, the Company's former Manager, and as such, no longer incurs management fee expense. Professional fees decreased by $27,493. Corporate development expense was $Nil in 2011 compared to $122,957 in 2010. General and administrative expenses were $291,570 in 2011 compared to $323,378 in 2010. Share-based compensation expense was $4,655 in 2011 compared to $14,215 in 2010. The decrease in these expenses was partially offset by the following increase in expenses: Wages and benefits expense was $85,894 in 2011 compared to $3,981 in 2010; and sales and marketing expense was $25,354 in 2011 compared to $NIL in 2010. The increase in certain expenses in 2011 was primarily due to the Company incurring these expenses directly, as opposed to being incurred by the former Manager through the Management Agreement in 2010.

For the nine month period ended September 30, 2011, the Company reported income of $1,044,968 compared to $133,156 for the same period of 2010. The net loss was $3,439,165 ($0.05 loss per share) for the nine months of 2011 compared to a net loss of $422,316 ($0.01 loss per share) during the same period for 2010. In 2011, the Company reported an unrealized loss on FVTPL investments of $3,508,944 compared to an unrealized gain of $1,590,542 in 2010.

Merchant Banking Portfolio

The Company's most significant investment, which represented 74% of the MB portfolio as at September 30, 2011, declined on a per share basis by 49% during the nine month period ended September 30, 2011, which had a significant negative impact on the earnings of the Company.

The Company's investment portfolio had a fair value of $2,590,612 as at September 30, 2011, having decreased by $3,411,531 since December 31, 2010, a 57% decline. The decrease was due to a combination of: The lower market value of shares held in the MB portfolio at September 30, 2011 relative to their December 31, 2010 market values; and due to the selling of certain investments held at December 31, 2010. The net decline in fair value of the investments held at December 31, 2010 was partially offset by the acquisition of certain other investments during the period. The Company reported an unrealized loss on FVTPL investments of $3,508,944 during the period.

Change in Financial Reporting Standards

The first quarter of 2011 marked the first period after the Company's changeover to International Financial Reporting Standards ("IFRS"). Details on the changeover are contained in the Company's notes to the interim unaudited consolidated financial statements and the Management's Discussion and Analysis for the period ended March 31, 2011.

The full interim unaudited consolidated financial statements for the quarter ended September 30, 2011 are available at [ www.augencc.com ] or at [ www.sedar.com ].

About Augen Capital

Augen Capital Corp. ("Augen") (TSX VENTURE:AUG) is a Toronto-based public merchant bank specializing in the provision of management, consulting and due diligence services to listed issuers in the mineral exploration, development and extraction sectors. Augen also assists in the financing of, and investment in, resource companies or projects.

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 ].

This news release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this news release including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), 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 the minerals the investee companies expect to produce; 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 investee companies. Additional risks and uncertainties can be found in our Management's Discussion and Analysis and in filings with the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this news release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Shares outstanding: 77,837,039

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