KWG Completes Debut Diamonds Acquisition

Montreal, Canada – August 29, 2011 – KWG Resources Inc. (TSXV: KWG) has completed the acquisition of 7 million treasury units of its subsidiary Debut Diamonds Inc. (“Debut”) valued at $0.30 each in exchange for subscription receipts for 21 million KWG treasury units valued at $0.10 each. The Debut units each comprised one new treasury share and one share purchase warrant; each Debut warrant may be exercised to acquire an additional Debut treasury share upon payment of $0.40 at any time within 5 years. The KWG subscription receipts are exchangeable for KWG treasury units which will each comprise one new treasury share and one share purchase warrant; each KWG warrant may be exercised to acquire an additional KWG treasury share upon payment of $0.15 at any time within 5 years.