Summary of 2006 Activities

After raising $44,099,000 in equity financing to complete the acquisition of the Rosemont property and fund development activities, the Company published the 2006 Rosemont Deposit Mineral Resource Statement*. The resource is estimated to contain 6.4 billion lbs of copper ("Cu") equivalent (442,000,000 tons at 0.73% Cu equivalent) in measured and indicated resources and 1.9 billion lbs of Cu equivalent (145,000,000 tons at 0.67% Cu equivalent) in inferred resources at a 0.2% copper cut-off.

The Company completed a Preliminary Assessment and Economic Evaluation (“PA”) in June, which reflected robust economics for the Rosemont deposit. The project holds a net present value of $442 million (8% discount rate), with an estimated annual copper production of more than 225 million pounds at $0.42 per pound. Following up on the positive PA, Augusta obtained a sustainable water supply source in the form of specific purchase and storage contracts with the Central Arizona Water Conservation District in June. The Company then filed Rosemont’s initial Plan of Operations with the US Forest Service in July, and commenced a final feasibility study for the project in August. Stakeholder response to the initial Plan of Operations has been used to modify the current feasibility study, and a final comprehensive Plan of Operations will be filed when the feasibility study is complete.

In the second half of 2006, the Company completed a 20,000-meter drill program with the intention of moving inferred resources into the measured and indicated category, and concluded a concurrent program to re-log and re-assay historic drill core to define potential oxide copper zones, quantify a silver resource for the deposit, and upgrade the sulfide copper-molybdenum resource. Furthermore, Augusta graduated to the Toronto Stock Exchange, became listed on the American Stock and Options Exchange, and attracted analyst research coverage from two financial firms, Laurentian Bank Securities and BMO Capital Markets.

Throughout the year, Augusta also continued exploration activities on its Mount Hamilton and Shell Deposit properties in Nevada. The Company commenced a pre-feasibility study at Mount Hamilton to evaluate development of the Centennial Deposit, which is now being expanded to assess run of mine heap leaching methods and is expected in the fourth quarter of 2007. In addition, the Company launched a 3,000-meter phase I exploratory drilling program on the Shell molybdenum/tungsten deposit. To date the Company has completed three drill holes, and final assay results are pending.

*The mineral resource estimation work was performed by or under the direction of Mr. William L. Rose, P.E., Principal Mining Engineer of WLR Consulting, Inc. (WLRC) of Lakewood, Colorado. Mr. Rose is an independent Qualified Person under the standards set forth by Canadian National Instrument 43-101. Details of the Mineral Resource Estimate can be found in the technical report entitled Mineral Resource Estimate, Revised Technical Report for the Rosemont Deposit dated April 21, 2006 filed on SEDAR (www.sedar.com) and also available on the Company’s website.

2007 Growth Objectives

Updated Resource Statement & Feasibility Study

After publishing the final drill results from the 20,000-meter drill program in December, Augusta expects to publish an updated resource statement in early March 2007. While the statement was originally scheduled for completion before the end of the year, third party assay processing delays have impacted the completion date.

The Company continues to work with consultants to advance the feasibility study, which is now expected for completion in the second quarter as a result of the delay in completing the updated resource statement. Metallurgical test work has largely been completed, and engineering is now 90% complete. The feasibility study will evaluate the project economics associated with processing sulfide ores as well as oxide copper processing.

Permitting

Concurrent with completing the feasibility study at Rosemont, the Company is preparing a detailed and comprehensive Plan of Operations for submission to the US Forest Service in the second quarter of 2007. Using this plan as a basis for permitting, Augusta will then move through the National Environmental Policy Act (“NEPA”) permitting process, whereby the US Forest Service initiates an Environmental Impact Statement (“EIS”) and public review process. The company continues to work with local interests to address relevant factual concerns and issues as part of the NEPA process.

The US Forest Service is the official agency in charge of leading the process of reviewing potential project impacts and identifying relevant mitigation plans resulting from the Plan of Operations. As such, the US Forest Service is responsible for issuing the final EIS and “Record of Decision” after pubic review and comment. These documents and findings are then considered by other federal and state agencies as they review the permits required to initiate mineral development on the property.

It normally takes anywhere from 12 to 18 months to complete the draft EIS and the initial public review process. Another three to six months are typically required to respond to public comments and prepare the final EIS, after which the US Forest Service will issue a “Record of Decision” either approving the plan or providing recommendations for modifications to the plan. Subsequent to the “Record of Decision”, the Company will file a final Plan of Operations (incorporating any necessary modifications). It is then that permits would be issued allowing the Company to commence construction. Upon completion of this process, Augusta expects to receive approval to construct the mine in 2009 and to produce copper at Rosemont in 2010.

Marketing

Augusta expects to participate in several industry conferences throughout 2007. The management team also plans to expand relationships with both new and existing institutional investors to ensure our value is understood in the global financial community.

Corporate Development

The Augusta management team is committed to advancing the Rosemont project as a cornerstone asset for growth in becoming a mid-tier copper producer within the next five years. The Company continues to look for opportunities to acquire exploration, development and production stage projects, in an effort to position the Company as a major copper producer in the long term.