Augusta Resource Corporation - Announcement

NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:   AUGUSTA RESOURCE CORPORATION

TSX VENTURE SYMBOL: YAU

JANUARY 27 2000 - 16:24 EDT

Augusta Resource Corporation - Announcement

Vancouver, BC

Augusta Resource Corporation (the "Corporation") announces an
arms length private placement of 500,000 units at $0.40 per unit,
subject to regulatory approval. Each unit consists of one common
share and one non-transferrable share purchase warrant
("Warrant"). Each Warrant can be exercised to purchase one common
share at a price of $0.40 during the first year and at a price of
$0.50 during the second year. The proceeds will be used for
exploration expenditures on the Corporation?s mineral properties
and for working capital. 

The Corporation will commence a seven hole, 951 meter drill
program on the Guadalupe y Calvo gold-silver property located in
Chihuahua State, Mexico in the next several days. The objective
of the program is to confirm the results obtained from previous
trenching and jackleg drilling programs. 

The Corporation announces the granting of director incentive
stock options to purchase up to 50,000 shares at a price of $0.47
per share for a period of five years ending January 26, 2005.

Currently there are 10,349,043 shares issued and outstanding.

The Corporation is a mineral exploration and development company
with an interest in the Blue Moon base metal property in
California, USA as well as the Guadalupe y Calvo property.

On behalf of the Board of Directors.

/s/Richard W. Warke 
________________________ 
Richard W. Warke President

No Stock Exchange has approved or disapproved the information
contained in this News Release. For additional information: 
Contact Investor Relations - Purni Parikh

Suite 1700, 701 West Georgia Street,  
Vancouver, British Columbia  
Canada, V7Y 1C6 
Telephone: 604 687 1717  
Facsimile: 604 687 1715  
E-mail: info@augustaresource.com




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