Appeal To Be Heard October 20, 2015

01 Jun 2015

Toronto, Canada, June 1, 2015 – KWG Resources Inc. (CSE: KWG; Frankfurt: KW6) reports that the Registrar of the Ontario Court of Appeal has notified the parties that October 20th, 2015 has been fixed for the hearing of the appeal of Canada Chrome Corporation (“KWG/CCC”) of the decision of the Divisional Court of the Ontario Superior Court made in July 2014 overturning the decision of the Ontario Mining and Lands Commissioner.

The respondent in the appeal is 2274659 Ontario Inc. and the intervenor is the Minister of Northern Development and Mines. Both parties have until June 29, 2015 to file responding materials if they elect to do so. 2274659 Ontario Inc. was formerly a subsidiary of Cliffs Natural Resources Inc. (“Cliffs”) and is now wholly-owned by Noront Resources Ltd. (“Noront”).

At a hearing before the Mining and Lands Commissioner (“MLC”) in early 2013, Cliffs sought an order to dispense with the consent of KWG/CCC for the granting of an easement for Cliffs to build a road on top of mining claims staked by KWG/CCC along a 340 kilometer corridor of high ground. KWG/CCC had spent some $15 million to explore the claims and assess their profiles and aggregates to provide a means of egress for the Big Daddy chromite deposit in which KWG/CCC has a 30% joint venture interest, with Cliffs then holding the 70% interest. The MLC declined to grant the order sought by Cliffs and Cliffs then appealed the MLC decision to the Divisional Court of the Ontario Superior Court.

The MLC decision was overturned by the Divisional Court in a judgment released in July 2014. KWG/CCC sought leave to the Ontario Court of Appeal to appeal the Divisional Court decision and was granted such leave to appeal this past January. The upcoming Court of Appeal hearing will determine whether the Divisional Court erred in finding that KWG/CCC’s consent to an easement over its claims should be dispensed with, as the MLC had decided it should not be dispensed with.

About KWG:
KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired patent interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. The company has determined that the reduction method can be employed to metalize finely ground chromite which may be recovered from slurry delivered to Aroland in an underground pipeline constructed within the Canada Chrome claims.

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