KWG Resources Inc.

KWG Resources Inc.
Spider Resources Inc.

Spider Resources Inc.

April 25, 2005 14:37 ET

KWG Resources Inc.: Diamond-Bearing Outcrop of 2400 Sq. M. Near Wawa


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KWG RESOURCES INC.

TSX VENTURE SYMBOL: KWG

AND SPIDER RESOURCES INC.

TSX VENTURE SYMBOL: SPQ

APRIL 25, 2005 - 14:37 ET

KWG Resources Inc.: Diamond-Bearing Outcrop of 2400
Sq. M. Near Wawa

MONTREAL, CANADA--(CCNMatthews - April 25, 2005) - KWG RESOURCES INC.
(TSX VENTURE:KWG) and SPIDER RESOURCES INC. (TSX VENTURE:SPQ) announce
the receipt of additional sample results and further details of the
analytical work on samples collected from the Wawa diamond project as
previously reported on 20 January and 9 February 2005. All sample
results are now available from the 2004 exploration program.

Twenty-eight (28) individual samples collected from surface outcrop,
weighing in total 347 kilograms, which were collected from stripped
outcrops, have identified a continuous diamond bearing mineralized zone
that is approximately 240 meters long, by 10 to 13 meters wide (2400
square meters). With the exception of one sample of a small dike, all
returned diamonds.

Two Thousand Three Hundred and Thirty Six (2336) diamonds were recovered
(down to the minimum collection size that would accumulate on a 0.15mm
screen). Of these 2336 diamonds: 30 had one dimension in excess of 1.0
mm; 58 had one dimension between 0.8 mm to 1.0mm; 357 had one dimension
between 0.5 mm and 0.8 mm. The remaining 1887 had one dimension between
0.2 mm and 0.55 mm. Details of the individual samples are presented in
the following table:



---------------------------------------------------------------------
greater
SAMPLE SAMPLE # of Diamonds than 0.8 - 0.5 - 0.2 -
REFERENCE WT (kg.) DIAMONDS per Kg. 1.0 mm 1.0 mm 0.8 mm 0.5 mm
---------------------------------------------------------------------
LAL-221(i) 10.0 21 2.1 1 2 1 17
LAL-222(i) 10.0 17 1.7 0 0 3 14
LAL-223(i) 10.0 37 3.7 2 1 7 27
LAL-224(i) 10.0 4 0.4 0 0 1 3
LAL-225(i) 10.0 20 2.0 0 0 3 17
LAL-226(i) 10.0 16 1.6 0 0 4 12
LAL-227(i) 10.0 16 1.6 0 0 5 11
LAL-228(i) 10.0 12 1.2 0 0 3 9
LAL-229 10.0 3 0.3 0 0 3 0
LAL-230 10.0 5 0.5 0 0 1 4

LAL-231(ii) 21.6 0 0.0 0 0 0 0
LAL-232(ii) 19.8 117 5.9 9 11 44 53
LAL-233(ii) 22.8 21 0.9 0 1 4 16
LAL-234(ii) 30.1 1632 54.2 14 39 221 1358
LAL-235(ii) 22.6 46 2.0 1 1 10 32
LAL-236(ii) 10.0 177 17.7 0 0 10 165
LAL-237(ii) 10.0 18 1.8 0 0 1 17
LAL-238(ii) 10.0 13 1.3 0 0 4 9

LAL-250 10.0 43 4.3 2 0 11 30
LAL-251 10.0 5 0.5 0 0 2 3
LAL-252 10.0 11 1.1 0 0 5 6
LAL-253 10.0 19 1.9 0 1 4 14
LAL-254 10.0 10 1.0 0 0 1 9
LAL-255 10.0 1 0.1 0 0 0 1
LAL-256 10.0 1 0.1 0 0 1 0
LAL-257 10.0 35 3.5 1 1 7 26
LAL-258 10.0 30 3.0 0 1 1 28
LAL-259 10.0 6 0.6 0 0 0 6
Totals 346.96 2336 6.7 30 58 357 1887
---------------------------------------------------------------------

(i) Previously Reported on January 20th 2005
(ii) Previously Reported on January 20th and February 9th 2005


The first 10 samples in the above table, were collected last June, and
represent the initial sampling of the area. Sample locations LAL 221 and
LAL 223 were considered extremely anomalous in this first-pass sampling,
because each sample produced 3 diamonds with one dimension greater than
0.8 mm.

These two sample-sites eventually underwent mini-bulk testing for larger
diamonds late last fall (2004), the results of which are imminent.
However, prior to the bulk sampling, additional samples were taken to
determine whether the xenolithic portion of the outcrops were diamond
rich or diamond poor. Six of the samples (previously reported on January
20th and February 9th 2005) LAL 232, 234, and 236 were collected to be
specifically representative of the xenolithic material (oblong
footballshaped masses of mica and actinolite), while samples LAL 233,
235 and 237 consist mostly of the finegrained hostrock matrix
surrounding the xenoliths.

The foregoing results clearly demonstrate that the xenoliths contain
most of the diamonds, but more importantly, most of the larger sized
diamonds. This observation may represent a major breakthrough in the
understanding of the complex interplay between the occurrence of larger
(those greater than 0.8mm) diamonds and the geology of this intriguing
diamond area. The remaining 2 samples from the fall campaign (LAL 231
and LAL 238) were sampled to test extensions of the observed geological
unit, as were the final ten samples reported in the table above.

The last ten samples (LAL-250 through to LAL-259) are results for the
final samples collected last fall, which have only now been received
because they were further back in the queue at the laboratory. The
diamond results from this particular outcrop area are similar to the
range of the diamondcount values of samples LAL 221 to LAL 230.
Consequently, core-drilling is being considered for a summer program, in
order to test this unique xenolith-bearing geological unit to depth.

As indicated in our News Release of 20 Jan 2005 and 9 February 2005,
these twenty-eight samples were processed by caustic dissolution at the
Thunder Bay Diamond Services Lab (formerly the Kennecott Diamond testing
facility) in Thunder Bay, which have provided individual descriptions
(xyz dimensions, crystal descriptions, actual carat weight of larger
stones, and octa-carat weights, etc.) for each diamond in our
twenty-eight samples. The samples reported herein were individually
bagged and sealed by James Burns, P. Eng. an Independent Qualified
Person, and delivered by a bonded carrier to the Thunder Bay Diamond
Services laboratory in Thunder Bay, Ontario where the samples underwent
micro diamond recovery and observation (MDob) using Caustic Fusion
followed by microscopic examination for micro diamonds, from various
sieve sizes of the caustic fusion product. Only those diamonds that were
captured on a 0.15mm sieve or greater were collected and reported.

The technical information presented herein, was compiled and prepared by
Neil Novak, P.Geo., in his capacity as the appointed manager of the KWG
- Spider Ontario joint venture.

Shares issued and outstanding: 118,587,408

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    KWG RESOURCES INC.
    FRANK C. SMEENK
    President and CEO
    (416) 642-3575
    (514) 866-6193 (FAX)
    or
    KWG RESOURCES INC.
    MAURICE MONTPETIT
    Investors' relation
    (514) 987-7263
    (514) 987-1033 (FAX)
    or
    KWG RESOURCES INC.
    MICHEL COTE
    Director
    (514) 866-6001/EXT. 266
    (514) 866-6193 (FAX)
    Or visit our website: WWW.KWG-RESOURCES.COM
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.