Drilling Resumes on Nickel Chrome Prospect 3.5 Km North-East of the Noront Nickel Discovery, McFaulds Lake Area, Northern Ontario

21 Jul 2008

Toronto, Canada – July 21, 2008 – KWG Resources Inc. (TSXV-KWG) “KWG” and Spider Resources Inc. (TSXV-SPQ) “Spider” and Freewest Resources Canada Inc. (TSXV-FWR) “Freewest” jointly announce that diamond drilling resumed on July 17th on their jointly owned Freewest Option property (the “Property”) located in Ontario’s James Bay Lowlands. KWG and Spider are funding this project as per a tri-party joint venture agreement with Freewest.

The current drill program is designed to delineate the layered chromium occurrence discovered by KWG and Spider in 2006 in a portion of a mafic / ultramafic intrusive body whose magnetic signature and structure has been designated as the Ring of Fire Intrusive (“RFI”) and which hosts the Eagle One and the Eagle Two Nickel Copper PGM occurrences of Noront Resources Ltd. (“Noront”) as well as Noront’s newly discovered Blackbird One chromium occurrence announced on May 27, 2008 (drill hole # NOT-08-1G17 includes 49.4 metres averaging 39.1% Cr2O3 (27.4% Cr) including anomalous nickel and palladium).

The focus of the KWG-Spider drill program will be to further evaluate this Cr-PGE-Ni occurrence, exploring it to greater depths and along strike and to continue the testing of several of the other anomalies on the Property. The current drilling is approximately 3.5 kilometres northeast of Noront’s Eagle One discovery where Noront recently announced (July 4, 2008) an indicated resource of 1.83 million tonnes with an average grade of 1.96% nickel, 1.18% copper, 1.12 g/t Pt, 3.91 g/t Pd, as well as an inferred resource of 1.09 million tonnes with an average grade of 2.39% nickel, 1.27% copper, 1.37 g/t Pt and 4.5 g/t Pd.  The drilling is also located approximately 15 kilometres southwest of the McFaulds Lake volcanogenic massive sulphide (“VMS”) occurrences where KWG, Spider and UC Resources Ltd. (“UC”) announced an indicated resource of 802,000 tonnes with an average grade of 3.75% copper and 1.1% zinc at their jointly owned McFaulds #3 deposit (see press release dated 15 July 2008).

As announced earlier by KWG, Spider and Freewest (June 11, 2008) massive chromite layers were encountered in hole FW-08-07 (Cr2O3 grades as high as 30.73% over 14.4 metres) in an altered peridotite sill interpreted to be part of the RFI. Other layers located within this Intrusive-complex show enrichment in precious metals as high as 2.183 g/t (Pt + Pd + Au) over 9.0 metres and Nickel up to 0.21% over 3.6 metres. For additional drill-hole results see our press releases of May 2, 2008 and June 29, 2006.

In light of a regional exploration review and discussions with neighbouring explorers, there is a consensus of opinion that the top of this chromite layered complex contained in the RFI is likely to the southeast, with bottom being towards the northwest. Interpretation of the drilling within this portion of the RFI suggests thickening of the chromite layers to depth (as seen in Noront’s Black Bird drilling) and to the northeast.

Chromite (rock composed mostly of chromite) layers have been intersected in holes FW-06-03, FW-08-05, FW-08-06 and FW-08-07. The chromite layers now appear to occur as steeply dipping stratiform layers with down dip extent of at least 200 metres and strike length of at least 200 metres (lines 9+00E and 11+00E on the local grid). The chromite layers vary from narrow seams, a few centimetres thick to massive beds of chromite greater than 14 metres in drilled thickness (not true width).

Chromite layers typically accumulate in horizontal layers near the top of peridotite sills and are positioned either laterally to and or above magmatic massive sulphide (Ni-Cu) accumulations with respect to the feeder zone. Several additional weakly mineralized (Ni-Cu) chromite enriched layers have also been noted in the peridotite below the massive chromite layers encountered in holes 3, 5, 6 and 7. With several intersections of massive chromite encountered in the earlier drilling, and those anticipated in the current drilling, the drill results can be accurately modelled three dimensionally and analyzed to determine section to section, as well as, hole to hole continuity. Lithogeochemical analysis will also be undertaken in order to join up the various chromite layers to determine continuity of these potentially economic layers.

The current drill program will in part infill the area between Section 10NE (Holes 3 and 5) as well as 11NE (Hole 7) and 12NE on 50 metre centers. In order to understand more fully the chemical characteristics of the occurrence and how this impacts chromium valuation. Whole rock analysis of the chromium enriched core must also be undertaken to determine silicate, sulphur and iron content, as these elements affect value of the rock.

Results of ground geophysical surveying coupled with various airborne surveys will be used to design additional drilling on this occurrence as well as testing other anomalies on the rest of the property where we hope to duplicate the success in locating accumulations of Nickel and Copper in the interpreted floor of the RFI sill complex..


All drill holes were logged and samples referred to herein were completed and selected by Howard Lahti Ph.D., P.Geo, of Fredericton New Brunswick.  The samples were sawn in half, with half of the core retained for further work and/or storage at the main base camp. The split samples were placed into individual plastic bags, clearly labelled and tagged and then sealed in rice bags where a numbered seal lock was closed by Dr. Lahti. The sealed rice bags were placed in plastic sealed pails and shipped via bonded carrier to Activation Laboratory’s (ActLab) new facility in Thunder Bay, Ontario. The samples were then entered into ActLab’s system for preparation, processing and analyzing. After initial processing at the Thunder Bay facility of ActLab the samples were shipped via lab – lab bonded courier to ActLab’s main laboratory in Ancaster, Ontario. The samples all underwent multi-element analysis using four acid digestion followed by Inductively Coupled Plasma analysis (TD-ICP). Where over limits in nickel and copper are encountered in the first pass, Optical Emission Spectrometry (ICP-OES) is used to provide the overlimit results, as well as Fire Assay Inductively Coupled Plasma (FA-ICP) for gold, platinum and palladium. Additional analysis using Instrumental Neutron Activation Analysis (INAA) was completed for all samples for their respective chromium grades in excess of 1% chromium. For more information on these analytical techniques please refer to Activation Laboratory website www.actlabs.com

This press release has been prepared by management of Spider, the Operator of the joint venture with KWG during 2008, and has been approved for dissemination by Neil Novak P.Geo, President of Spider and a Qualified Person as such term is defined under National Instrument 43-101, who has reviewed and verified the technical information contained in this press release and has approved the contents of this press release.

For further information, please contact:

Bruce Hodgman,
Communications Director
Direct: (416) 646-1374

Or visit our website:  www.kwgresources.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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