KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

May 16, 2008 08:00 ET

KWG Resources Inc.: Debuts Diamonds

MONTREAL, CANADA--(Marketwire - May 16, 2008) - The break-up of winter ice conditions in the James Bay Lowlands has temporarily halted the drilling program of the joint venture between KWG Resources Inc (TSX VENTURE:KWG) and Spider Resources Inc (TSX VENTURE:SPQ) on the claims optioned from Freewest Canada Resources Inc (TSX VENTURE:FWR) near the discovery of the Eagle 1 and Eagle 2 nickel deposits of Noront Minerals Inc (TSX VENTURE:NOT). Field programs are expected to resume after the end of May.

In the meantime, KWG's Board of Directors has determined that the roll-over of the Company's diamond exploration property interests to its subsidiary Debuts Diamonds Inc, may be done in exchange for units issued from the subsidiary's treasury priced at $0.20 with each unit comprising one share and one warrant exercisable at $0.30 for one year. The rollover transaction, valued at approximately $9 million, was completed with effect on April 29th, 2008. It is anticipated that Debuts Diamonds will file its non-offering prospectus with regulatory authorities before mid-year.

Shares issued and outstanding: 263,659,821

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