"For further information, please refer to the company's news release dated Feb. 24, 2011"

Montreal, Canada - February 24, 2011 -

KWG Resources Inc. (TSXV: KWG) announces that it has negotiated an agreement to conclude the previously announced acquisition of a net smelter royalty reserved in the claims containing the Black Thor, Black Label and Big Daddy chromite deposits. The Company will issue 4 million treasury units to complete the transaction, the closing of which had been deferred by mutual agreement upon partial payments of the purchase price. Each unit is valued at $0.10 and will be comprised of one treasury share and one purchase warrant enabling its holder to acquire one further treasury share at any time within two years upon payment of $0.15.

It would appear that the 4 million shares are just now being issued to the original vendor to complete KWG's purchase of the NSR. This could be an explaination of why $9 million from the sale is being held in escrow.

SRV