METALLURGICAL TESTS: Big Daddy ore suitable for direct shipping

ONTARIO - KWG Resources of Montreal has received results of a preliminary report on Big Daddy chromite ore from its deposit in the Ring of Fire saying that after crushing and screening the yield of saleable material as direct shipping lumpy "ore" is nearly 100%. The test was conducted by Xstrata Process Support at Falconbridge, ON. Further metallurgical tests are planned.

Meanwhile, KWG has begun a 12-hole program at Big Daddy to test the continuity of the chromite deposit at depths of 450 and 600 metres. Assays results will be available after the end of the campaign.

The Big Daddy chromite project is owned by KWG (26.5%), Cliffs Natural Resources (73.5% including the 26.5% interest of its subsidiary Spider Resources).

Additional metallurgical and drilling results will be posted at www.KWGResources.com.