In the quarter ended September 30, 2008, Augen's income was $301,193, compared with $796,856 in the third quarter of 2007. The Company's income is driven by its Managed Products (MP) and Merchant Banking (MB) segments. Income in the MP segment was $180,522 in the latest quarter, compared with $462,161 in the third quarter of 2007. This was mainly the result of consulting and due diligence fees declining by $78,720, advisory and performance fees declining by $191,702 and interest and dividend income declining by $11,217 from the same period in 2007. Income in the MB segment was $120,671 in the latest quarter, compared with $334,695 in the third quarter of 2007. This was primarily the result of a net realized gain on the sale of investments in the same period of 2007 of $119,893. A decrease in consulting fees of $45,667, a decrease of $38,034 in interest and dividend income and a decrease in income from investee company services of $10,430 also accounted for the change.

In the MP segment, the third quarter loss before income taxes was $59,371 compared with earnings of $70,290 in the same period of 2007. This change was primarily due to a decline in income of $281,639.

The MB segment experienced a loss, before income taxes, of $1.4 million in the three months ended September 30, 2008, compared with a loss before income taxes of $2.4 million in 2007. The decrease in the loss was mainly due to a greater amount recovered from the adjustment to the fair value of liabilities of $132,899 recovered in 2008, compared with $41,353 recovered in 2007, and investments held for trading that were subject to an unrealized loss of $1.2 million in 2008 compared with an unrealized loss of $2.3 million in 2007.

The Company incurred a total of $11,164 in non-recurring charges in the quarter, and 50% was allocated to each of the Augen's operating segments.

Net loss before income taxes for the quarter was $1.5 million compared with $2.3 million in the third quarter of 2007.

Net loss in the quarter was $1.3 million compared with a net loss of $2.1 million in the same period of 2007.

Note: The adoption of CICA Handbook Section 3855, which requires the reporting of unrealized fluctuations in the fair value of the Merchant Banking investment portfolio, has resulted in greater volatility in the net earnings of Augen since it was adopted in the first quarter of 2007. While these accounting standards provide insight into the current fair value of the Merchant Banking (MB) investment portfolio, they do not necessarily provide an accurate indication of the ultimate realized gain or loss, which will be different.

----------------------------------------------------------------------------
Consolidated Statements of Earnings
----------------------------------------------------------------------------
                   Managed
For the three     Products         Merchant Banking              Total
 months ended   2008    2007       2008        2007        2008        2007
 September 30,     $       $          $           $           $           $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income
 (loss)      180,522 462,161    120,671     334,695     301,193     796,856
Expenses     228,671 390,219    413,981     462,287     642,652     852,506
----------------------------------------------------------------------------
Earnings
 (loss)
 before
 undernoted
 items       (48,149) 71,942   (293,310)   (127,592)   (341,459)    (55,650)
Unrealized
 loss on
 investments
 held for
 trading           -       -  1,244,848   2,264,442   1,244,848   2,264,442
Non-recurring
 charges       5,582       -      5,582           -      11,164           -
Adjustment to
 fair value
 of
 liabilities       -       -   (132,899)    (41,353)   (132,899)    (41,353)
Amortization   5,640   1,652      5,641       1,652      11,281       3,304
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes       (59,371) 70,290 (1,416,482) (2,352,333) (1,475,853) (2,282,043)
----------------------------------------------------------------------------
Income taxes
 Current                                                (63,595)    110,654
 Future                                                (159,689)   (341,284)
----------------------------------------------------------------------------
                                                       (223,284)   (230,630)
----------------------------------------------------------------------------
Net earnings
 (loss) and
 comprehensive
 earnings (loss)                                     (1,252,569) (2,051,413)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the three months ended September 30, cash used in operations, excluding changes in non-cash working capital decreased to $94,221, from $179,853 in the same period of 2007. This was mainly the result of a reduction in the net loss of $798,844 and a decrease in income taxes of $181,595. This was partially offset by a reduction of $899,701 in net realized and unrealized losses on investments held for trading in the quarter compared with 2007.

"The fluctuations in the price of commodities earlier in the year foreshadowed a significant market correction, along with the uncertainty and investor fear that has accompanied it. Our business is not immune from broader market realities and our quarterly results reflect this," said J. David Mason, Chief Executive Officer of Augen. "Management has taken action to streamline operational costs and preserve cash in addition to suspending the disposition of securities until the market shows signs of improvement. The Company remains committed to creating shareholder value by maximizing fee income from the Managed Products consulting assets and investment returns on the Merchant Banking investment portfolio."

Year-to-Date Results

Through the first nine months of 2008, Augen's income was $1.2 million compared with $3.3 million through the first three quarters of 2007. In addition to other items, the variance was mainly the result of a decrease in advisory and performance fees of $107,654 and a decrease in consulting and due diligence fees of $601,060 in the MP segment, coupled with a net realized gain on the sale of investments of $108,922 in 2008, compared with a net realized gain on the sale of investments of $1.6 million in the MB segment in 2007.

The loss before income taxes in the MP segment, for the nine months ended September 30, 2008, was $592,341 compared with earnings of $486 in 2007. In addition to other items, this variance was primarily the result of a decline in income of $730,158 that was partially offset by a decrease of $398,655 in expenses.

Through the first three quarters of 2008, the MB segment's reported loss before income taxes was $3.1 million compared to a loss before income taxes of $3.2 million in the same period of 2007. This was primarily the result of a decrease of $227,008 in expenses year-over-year, which was offset by other items.

Net loss, before income taxes, was $3.6 million in 2008, compared with a net loss of $3.2 million through the first three quarters of 2007.

Net loss was $3.0 million for the nine months ended September 30, 2008, compared with a net loss of $2.8 million in the same period of 2007.

-----------------------------------------------------------------------
-----
Consolidated Statements of Earnings
----------------------------------------------------------------------------
                  Managed             Merchant
For the nine     Products              Banking                 Total
 months ended 2008      2007       2008        2007        2008        2007
 September 30,   $         $          $           $           $           $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income
 (loss)    635,846 1,366,004    566,961   1,913,469   1,202,807   3,279,473
Expenses   961,906 1,360,561  1,051,897   1,278,905   2,013,803   2,639,466
----------------------------------------------------------------------------
Earnings
 (loss)
 before
 undernoted
 items    (326,060)    5,443   (484,936)    634,564    (810,996)    640,007
Unrealized
 loss on
 investments
 held for
 trading         -         -  2,521,038   4,272,282   2,521,038   4,272,282
Non-
 recurring
 charges
 (note 15) 257,438         -    257,438           -     514,876           -
Adjustment
 to fair
 value of
 liabilities     -         -   (220,380)   (481,334)   (220,380)   (481,334)
Amortization 8,843     4,957      8,843       4,956      17,686       9,913
----------------------------------------------------------------------------
Earnings
 (loss)
 before
 income
 taxes    (592,341)      486 (3,051,875) (3,161,340) (3,644,216) (3,160,854)
----------------------------------------------------------------------------
Income taxes
 Current                                               (322,985)    206,098
 Future                                                (363,864)   (535,854)
----------------------------------------------------------------------------
                                                       (686,849)   (329,756)
----------------------------------------------------------------------------
Net earnings
 (loss) and
 comprehensive
 earnings
 (loss)                                              (2,957,367) (2,831,098)----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash used in operations, excluding changes in non-cash working capital, was $772,065 compared with $273,011 through the first three quarters of 2007. This change was mainly the result of an increase in the net loss of $126,269, a decline in stock-based compensation of $239,949 and a decrease of $298,251 in net realized and unrealized losses on investments held for trading.

Consolidated assets decreased by 26% to $8.4 million on September 30, 2008, from $11.3 million on December 31, 2007. Augen's balance sheet has almost $4 million in current assets and no long-term debt.

-----------------------------------------------------------------------
-----
Consolidated Assets
----------------------------------------------------------------------------
                 Managed Products    Merchant Banking           Total
                September December September   December September   December
                 30, 2008 31, 2007  30, 2008   31, 2007  30, 2008   31, 2007
As at,                  $        $         $          $         $          $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets      672,257  733,415 7,679,304 10,550,270 8,351,561 11,283,685
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Shareholders'
 equity per
 share (i)                                                   0.21       0.29
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Defined as shareholders'equity per financial statements, divided by
    common shares outstanding
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The full unaudited interim consolidated financial statements for the period ended September 30, 2008 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 financing of and investment in emerging resource companies. Augen manages a merchant banking hard dollar portfolio of emerging resource stocks including private companies and is an industry performance leader in tax-advantaged flow-through investments in Canada's resource sector having raised over $58 million in flow-through limited partnership assets since inception. Augen currently has $25 million in flow-through investment consulting assets, including $17 million raised in 2008 by Augen and its sales and distribution partner. Augen holds over one hundred gold, base metals and uranium exploration and development public and private companies with direct holdings in its merchant banking portfolio and consulting assets in flow-through limited partnerships.

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 2008 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: 36,615,615

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

Contacts:
Augen Capital Corp.
J. David Mason
Chief Executive Officer
(416) 479-3300
Email: investorrelations@augencc.com

Lute & Company
John Lute
(416) 929-5883 x 222

SOURCE: Augen Capital Corp.

mailto:investorrelations@augencc.com

If the Company's common shares achieve a closing price of $0.30 or higher for a period of 21 consecutive trading days, the Company may, at any time after the expiry of the hold period, notify the warrant holders that all unexercised warrants will expire 30 days following the date that the notice is issued.

All securities are subject to a four month hold period from the respective closing date of each financing under the private placement which expire on February 19, 2009 and February 25, 2009 respectively.

The net proceeds of the private placement will be used to fund the Company's exploration programs in Ontario.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Jacobus, Paint Lake, Solomon Pillars and Onaman properties in the Beardmore -Geraldton Gold camp and the Kerrs property in Ontario; the Pony Spur and Sugarloaf properties situated in Nevada, and the Gold Hill property in Arizona. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sgx@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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 and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contacts: Sage Gold Inc. Nigel Lees President and C.E.O. (416) 204-3170 (416) 260-2243 (FAX) Sage Gold Inc. Mike O'Brien Manager/Investor Relations (416) 204-3170 (416) 260-2243 (FAX) Website: www.sagegoldinc.com

SOURCE: Sage Gold Inc.

http://www.sagegoldinc.com

J. David Mason has been appointed President and Chief Executive Officer, in addition to his role as Chairman of the Board of Directors. Michael D. Harris will continue in his role as independent Lead Director.

Michael G. Fowler has been appointed Chief Operating Officer. Mr. Fowler had been interim Chief Executive Officer since April, 2008. Mr. Fowler is also President and Chief Executive Officer of Augen Gold Corp. in which Augen Capital is a major shareholder.

Manish Z. Kshatriya, CA, CPA (CO) has been appointed Chief Financial Officer. He had been interim Chief Financial Officer since April, 2008. Mr. Kshatriya has also been appointed Chief Financial Officer of Augen Gold Corp. (TSX-V: AUJ).

Augen also announced the granting of 100,000 stock options to J. David Mason, and 150,000 to Manish Z. Kshatriya at an exercise price of $0.25 per share pursuant to Augen's stock option plan. The options vest over three years and expire in five years. The issuance is subject to the Exchange four month hold period and regulatory approval.

Under the Company's stock option plan, 10% of the issued capital, or 3,661,562 common shares, are reserved for issuance. Including the above grant, a total of 2,250,000 options are outstanding under the stock option plan.

About Augen Capital

Augen Capital Corp. ("Augen") (TSX-V: AUG) is a Toronto-based public merchant bank specializing in the financing of and investment in emerging resource companies. Augen manages a merchant banking hard dollar portfolio of emerging resource stocks including private companies and is an industry performance leader in tax-advantaged flow-through investments in Canada's resource sector having raised over $58 million in flow-through limited partnership assets since inception. Augen currently has $40 million in flow-through investment consulting assets. Augen holds over one hundred gold, base metals and uranium exploration and development public and private companies with direct holdings in its merchant banking portfolio and consulting assets in flow-through limited partnerships.

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

SOURCE: Augen Capital Corp.

J. David Mason, Chairman, President and Chief Executive Officer, Tel: (416) 479-3300,
Toll-free: (888) 442-8436, investorrelations@augencc.com

The call will feature comments from Augen Chairman and Chief Executive Officer David Mason. In a challenging market, Augen feels it is important that shareholders are kept well aware of any developments affecting the Company and of Management's commitment to protect and enhance shareholder interests.

The 11 a.m. Eastern Time slot has been selected for the convenience of both North American and European investors. Following a short presentation, investors will have the opportunity to ask questions. A presentation will be posted on the Augen Capital Corp. web site one hour prior to the start of the conference call.

    <<
    Shareholder Conference Call Details:

      Date:    Thursday, September 18, 2008

      Time:    11:00 a.m. Eastern Time

      Theme:   Managing In Troubled Times - Transparency and Prudence

      Slides:  Available for download at 10:00 a.m., Thursday, September 18
               from www.augencc.com

      Dial-In Numbers:

        North America:          1-866-440-8936, conference ID 2368408
                                followed by the number sign

        Outside North America:  800-9011-2680, conference ID 2368408
                                followed by the number sign

    *Note for callers from outside North America - You may need to add a
    country prefix to the dial-in number. If you plan on participating in the
    call, please email Julie Kim, jkim@augencc.com, prior to 9:00 a.m.
    Eastern Time on September 18 and advise her of your location in the
    email. Julie will forward dial in instructions.
    >>

About Augen Capital

Augen Capital Corp. ("Augen") (TSX-V: AUG) is a Toronto-based public merchant bank specializing in the financing of and investment in emerging resource companies. Augen manages a merchant banking hard dollar portfolio of emerging resource stocks including private companies and is an industry performance leader in tax-advantaged flow-through investments in Canada's resource sector having raised over $58 million in flow-through limited partnership assets since inception. Augen currently has $40 million in flow-through investment consulting assets. Augen holds over one hundred gold, base metals and uranium exploration and development public and private companies with direct holdings in its merchant banking portfolio and consulting assets in flow-through limited partnerships.

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

SOURCE: Augen Capital Corp.

J. David Mason, Chairman, President and Chief Executive Officer, Tel: (416) 479-3300,
Toll-free: (888) 442-8436, investorrelations@augencc.com