News from KWG

Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Deke

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News from KWG

posted on Apr 29, 2010 05:01PM

This is just in, and I am posting just in case not everybody is in the loop>

Dear Sir/Madam,

KWG Resources is committed to enhancing its corporate communications program and that's why I've enclosed the following KWG update for your perusal.

Freewest Resources Canada Inc. our joint venture partner in the 'Big Daddy' chromite deposit was acquired in a takeover bid of $240M by CLIFFS Natural Resources (CLF - NYSE) on Jan 27, 2010.

Right now KWG Resources and Spider Resources have an 'equal interest' (26.5% & 26.5%) along with CLIFFS (47%) in the 'Big Daddy' chromite deposit and that will continue as we move forward.

An updated NI 43-101 for the 'Big Daddy' chromite deposit is due shortly. This type of report is prepared by an independent qualified person and as such the timing is not totally in our control. Once the document is completed, it is subject to an approval process by the Joint Venture Technical Committee, the Joint Venture Management Committee and the individual Board of Director’s of each of the companies involved. The report must be checked very carefully to make sure it's accurate before being sent for final approval and then signed off by the 3 joint venture partners. While we don't have an exact date for the release of the report it will be forthcoming shortly. Both KWG and SPIDER will jointly release the results.

The key differences between KWG and Spider are as follows:

* KWG took over as operator of the project on April 1, 2010

* KWG owns a 1% Net Smelter Royalty (NSR) on the 'Big Daddy' deposit as well as on the wholly owned Cliffs properties to the north containing the 'Black Label' and 'Black Thor' chromite deposits.

* KWG has Cliffs as a partner as a result of Cliffs approx 20% 'direct' ownership stake in KWG.

* KWG has a Cliffs representation our Board of Directors.

* KWG has staked the right of way for a 350 km. railway link that will connect the Ring of Fire to the existing rail lines on the north side of Lake Superior around Nakina.

Please note some recent media coverage about KWG RESOURCES that you may find of interest. The Railway Link / Canada Chrome Corp. articles are quite informative as well.

*(JAN-2010) - Times-Star - CANADA CHROME CORPORATION is a wholly owned subsiduary of KWG RESOURCES - RAILWAY PROJECT article.

>http://www.torontosun.com/comment/columnists/christina_blizzard/2010/02/11/12845066.html

***(Feb-25-10) - CTV News - The Premeire of Ontario, Dalton McGuinty comments on the economic benefits of the proposed Chromite mine in the 'ROF'.

>http://kwgresources.com/_resources/media/PR-CJ-Ring_of_Fire_feasibility_studied_FEB_10.pdf

*****(Mar-2010) - Sudbury Mining Solutions - Chromite Mine Operator Still to be Determined.

>http://www.thestar.com/news/insight/article/785429--ring-of-fire-a-chance-to-remake-or-ruin-the-north

*******(Mar-30-10) - BNN Television - Bruce Reid (Director) of KWG Resources appeared to discuss positive developments in the 'Ring Of Fire'. />http://watch.bnn.ca/clip282682#clip282682

If you would prefer to not receive these periodic updates in the future, just let me know via return e-mail and I'll amend our database.

Please feel free to call me anytime with your questions.

Best regards,

Chris Meraw

Corporate Communications

KWG Resources Inc.

TSX VENTURE:KWG.v

(416) 646-1374

(888) 644-1374 (Toll Free)

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