KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

February 19, 2008 17:17 ET

KWG Provides Update, Will Drill Freewest Option With Spider

MONTREAL, CANADA--(Marketwire - Feb. 19, 2008) - KWG Resources Inc. (TSX VENTURE:KWG) will not proceed with a second tranche of the $3,000,000 private placement, as announced in December. The Company closed $2.1 million of this placement at the end of 2007.

KWG and its JV partner Spider Resources Inc (TSX VENTURE:SPQ) have budgeted $2.2 million to drill the targets identified in the claims optioned from Freewest Resources Canada Inc (TSX VENTURE:FWR) in an initial program this winter. Drilling is expected to commence there within the next two weeks when line-cutting and on-ground geophysical definition of the targets is completed. KWG and Spider have an equal interest in the option, under which they may together earn up to a 65% interest in the property. Both companies also have equivalent interests in various other joint ventures between them, including the extensive McFaulds Lake properties optioned to UC Resources Inc (TSX VENTURE:UC). "It is important that the investing public understands how KWG and Spider are completely equal in their interests that are adjacent to the recent Noront discovery in the so-called Ring of Fire", said KWG president Frank Smeenk.

As also previously announced, three 100-ton bulk samples of the MacFadyen kimberlites are planned for this winter season. Pursuant to the MacFadyen KWG-Spider Joint Venture, KWG may dilute the interest of Spider to 33%. The Company has initiated steps to transfer the property to subsidiary Debuts Diamonds Inc. KWG plans to distribute the shares of Debuts Diamonds Inc as a return-of-capital dividend to shareholders of record at a future date to be announced.

Shares issued and outstanding: 262,863,821

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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