Massive Black Horse Chromite Discovery

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Message: FERROCHROME SMELTING TEST RESULTS
KWG ANNOUNCES XSTRATA FERROCHROME SMELTING TEST RESULTS
13:40 EST Monday, March 07, 2011
Symbol on TSX Venture Exchange: KWG
Shares issued and outstanding: 632,828,941

MONTREAL, March 7 /CNW/ - KWG Resources Inc. (TSXV: KWG) has received the preliminary analysis from the smelting test completed by Xstrata Process Support on February 3rd, 2011. The results reported are from two separate smelting tests conducted at two different temperatures. While both tests had excellent recoveries, the test melt at the lower temperature of 1635°C resulted in a high recovery of high grade ferrochrome. The analytical results of the two tests are tabulated below. Further results, including energy consumption properties of the Big Daddy chromite ore, are anticipated in the next number of weeks.

Test Temperature Flux% Cr % Fe % C % Si% % Cr Recovery Slag / Metal Ratio
1 1685oC 9 58.0 33.5 7.24 0.47 86 1.12
2 1635oC 12 59.6 33.1 7.26 0.15 91 1.19

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

BRUCE HODGMAN
Communications Director
416-646-1374
info@kwgresources.com

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