KWG announces a private placement

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	    Symbol on TSX-Venture Exchange:  KWG
	    Shares issued and outstanding:  477,863,010
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	    MONTREAL, Jan. 8 /CNW/ - KWG Resources Inc. (TSX-V: KWG) ("KWG" or the
"Company") announces a private placement (the "Private Placement") of $35,000
of units of securities of the Company comprised of one common share and
one-half common share purchase warrant at a price of $0.07 per unit. Each full
warrant is exercisable at a price of $0.10 to acquire one common share for a
period of one year from the date of the issuance. The placement is subscribed
by one director of the Company and therefore the private placement will a
"related party transaction" under Multilateral Instrument 61-101 -Protection
of Minority Security Holders in Special Transactions ("MI 61-101"). However,
the Company expects that it will be exempt from both the formal valuation and
minority shareholder approval requirements of MI 61-601 in connection with the
Private Placement because neither the fair market value of the securities to
be issued, nor the consideration for such securities, exceeds 25% of the
Company's market capitalization as calculated in accordance with MI 61-601.
	    The Private Placement remains subject to the approval of the TSX Venture
Exchange.

	    About KWG Resources Inc.

	    KWG Resources is a mineral exploration company with extensive claim
holdings in the James Bay Lowlands of Northern Ontario, Canada, where
important discoveries of nickel and chrome have been made recently in the Ring
of Fire. KWG has an equal joint venture interest in a large claim block in the
central part of the discovery area, with Spider Resources Inc. The joint
venture is developing the Big Daddy chromite deposit adjacent to the Black
Thor and Black Label chromite discoveries of Freewest Resources.

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