Canpages has announced the launch of its free augmented reality iPhone application for local search called the CanadaEye.

The new mobile applications lets users search and view the direction and distance to all specific business locations in real-time overlaid on iPhone’s screen.

Augmented reality is the latest technology term coined for applications that leverage the iPhone 3GS’ compass, GPS and video camera simultaneously. The Canpages application enables users search for a specific business category—from local delis and mom and pop bakeries to Starbucks and Tim Hortons—and then shows the direction and distance to all of the businesses in the category in the local area.

The application is free to download through iTunes Canada app store.

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