MONTREAL, April 7 /CNW/ - KWG Resources Inc. (TSXV - KWG) has been notified by Cliffs Greene B. V. ("Cliffs") that it wishes to exercise its pre-emptive right to participate in the Private Placement recently announced by KWG and will subscribe for such number of units that it holds a 19.9% interest in KWG on a fully-diluted basis following completion of the Private Placement and the exercise of warrants referred to below. The subscription by Cliffs is subject to acceptance by the TSXV.

In addition, Cliffs has provided notice that it is exercising warrants previously issued to it to acquire 5,016,769 common shares of KWG for gross proceeds to KWG of US$250,839.45. These warrants were issued to Cliffs to enable it to avoid dilution of its interest in KWG, and became exercisable upon the exercise of warrants held by third parties to acquire 25,083,845 common shares of KWG