From the MD&A

Outlook

Exploration Program:
Near the end of the third quarter, personnel and equipment were mobilized to Billiken Management’s McFaulds Lake Camp to resume a core drilling program on the Big Daddy chromium deposit. The $5.7 million program is intent on drilling the entire geophysically-inferred strike length of greater than one kilometre, to a depth of 250 metres, at a hole density of 100 metres and locally at greater density. Preliminary variography indicates that this density is sufficient to establish a 43-101 compliant resource. Recently completed detailed magnetic and gravity surveys will ensure optimum drill hole location. The results of a scoping level metallurgical study, conducted by SGS Lakefield, were received prior to the commencement of drilling. The report confirmed that high value chromite concentrate can be produced from the Big Daddy.
In addition to drilling the Big Daddy, targets representing both magmatic copper-nickel deposit type, and volcanogenic copper-zinc deposit type, will be drill tested. The existing geophysical data will be supplemented by detailed Pulse EM surveys.

Other activity during the quarter included staking railroad corridors from the CNR line near Nakina to the Ring of Fire. The corridors are high ground consisting of glacio-fluvial deposits. The company engaged Krech Ojard & Associates, P.A. of Duluth, Minnesota to provide engineering services for the construction of the 350km railroad. Detailed topographic surveys, and sampling for soil testing commenced.

OVERALL PERFORMANCE - FINANCIAL
During the third quarter ended September 30, 2009, the Company improved its financial situation with the closing of a private placement with total subscriptions of $1,437,500. The net proceeds of the private placement have been used to finance the exploration work on the Freewest Option in the Ring of Fire, to identify a proposed route for a railroad link to the Ring of Fire and for working capital. The proceeds from the FT Units will be used for eligible flow-through exploration expenses and will be renounced for the 2009 taxation year.
The Company has maintained its focus on its strategic planning to develop what it expects could become a North American ferro-chrome supplier deposit as well as a route to export the materials. Exploration activities on the Freewest optioned properties have been steady and progress is being made to understand the value of the deposit.

KWG’s railway infrastructure project has been well timed and the need for a railway in the Ring of Fire seems highly economic. KWG continues to raise funds for its subsidiary Canada Chrome Corporation to investigate and explore and initiate an engineering plan.

SRV