KWG Resources Inc.

KWG resources Inc (TSXV: KWG) is an exploration stage company that is participating in the discovery and delineation of chromite deposits in the James Bay Lowlands of Northern Ontario. These deposits appear to promise the hosting of a globally significant source of chromite minerals which may be refined into ferrochrome, a principal ingredient in the manufacture of stainless steel.

KWG acquired a 1% net smelter royalty ("NSR") in all of the presently-defined chrome discoveries and created Canada Chrome Corporation ("CCC") as a wholly-owned subsidiary. CCC has staked mining claims covering a lineament of fluvial glacial eskers. These eskers are well suited for a railroad embankment which could be created for transporting materials into the discovery area as well as transporting the mined ores out. The claims have been sampled to create a geotechnical database to have foundational knowledge to be used for informed consultations, with affected First Nations and all other local and regulatory constituencies, on the feasibility of constructing a railroad.

KWG has made representations for the Ontario Northland Transportation Commission to assume a leadership role in the creation of this transportation corridor on behalf of all stake-holders. The Company has also recommended to the incumbent Chief of one of the principally affected First Nations communities, a suggested formula through which the area's indigenous population might be vested with an economic interest in the transportation assets.

CCC and the NSR are owned outright by KWG, as is Debuts Diamonds Inc., a wholly-owned subsidiary which contains all the Company's diamond exploration properties. KWG has operated the MacFadyen Kimberlites and other contiguous interests that are all adjacent to the De Beers Victor Diamond Mine.

The Freewest Option property has now been demonstrated to host the Big Daddy chromite deposit and both KWG and Spider have each earned a 26.5% interest in it, thus providing each with options to earn another 1.5% this year and 2.0% next year for each incurring $2.5 million of additional exploration expenditures in each year. When those are completed a joint venture will be formed and its operator will be selected by the holders of a majority of the JV interests. The Freewest non-operating interest in the Big Daddy deposit as well as its adjacent Black Thor deposit are now the property of Cliffs after it recently acquired all of the outstanding shares of Freewest.

The Company is in the process of exploring its mineral property interests with the objective of identifying mineral deposits that are economically recoverable. The Company will periodically have to find additional funds to continue its exploration activities, and while it has been successful in doing so in the past, there can be no assurance it will be able to do so in the future.

Management will continue to pursue all financing alternatives available to fund its ongoing obligations and exploration activities. Although there is no assurance that the Company will be successful in these actions, management is confident that it will be able to secure the necessary financing through the issuance of new equity to continue as a going concern. Should the Company not be able to obtain the necessary financing, there would be significant doubt as to the ability of the Company to meet its obligations as they come due.

Significant recent developments include: