Mineral Exploration Company KWG Enters Into An Option Agreement With Cliffs Natural Resources Inc.

Montréal, Canada - January 21, 2009 - KWG Resources Inc. ("KWG" or the "Company") (TSXV: KWG; OTCBB: KWGBF) is pleased to announce that it has entered into a an option agreement (the "Option Agreement") with Cliffs Natural Resources Inc. ("Cliffs") (NYSE: CLF) an Ohio Corporation. The Option Agreement grants Cliffs an irrevocable option (the "Option") to purchase and acquire certain securities of KWG in the aggregate amount of US$3,500,000.

KWG indicated that Cliffs has expressed interest in KWG's potential claims to ferro chromium deposits and that the Option Agreement provides that Cliffs will not participate in any distribution by KWG of the equity of Debuts Diamonds Inc.

Unless something has happened since then, and I don't recall any mention of such an event, I believe Cliff's will not be a participant in any DDI distribution. At least not for the shares they received under this agreement.

SRV