CSE: KWG
www.kwgresources.com

Ms. Megan McElwain reports:

Toronto, Ontario--(Newsfile Corp. - May 2, 2022) - KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW61) ("KWG" or the "Company") announces that it has received and filed as a Notice of Material Change on its SEDAR profile, a copy of the Canadian Chromite R&D Initiative Chapter 1.1 Chromite R&D Initiative - Background, Objectives, Approach and Summary of Accomplishments dated January 2022 and Canadian Chromite R&D Initiative Chapter 3.2.1 Direct Reduction of Chromite Conceptual Approach and Overview dated September 2021.

The two reports issued by Natural Resources Canada's renowned CanmetMINING division, 555 Booth Street, Ottawa, ON, K1A 0G1, comment directly and very favorably on the results of research into the principal aspects of the direct reduction method to beneficiate chromite, patented by KWG with additional technology patented by CanmetMINING under the leadership of acclaimed metallurgical scientist Dr. Dogan Paktunc. The research results suggest that the patented method may achieve 30% lower cost when compared to other methods currently employed, plus a reduced carbon footprint of 55% or more, plus a secondary byproduct production stream of refractory material with significant market value to contribute to process revenues and concomitant further production cost reduction and efficiencies. This process has potential to meaningfully enhance the economic viability of the Ring of Fire.

As part of Canada's recently announced Critical Minerals Strategy, CanmetMINING has committed to funding for a further 2-year research program to prepare for scaling-up the direct reduction process in advance of piloting for commercialization. The entire Chromite R&D Initiative Research Report is being translated for filing on the website of the Canadian Geological Survey.

"This is a most tremendously encouraging development, for Canada's crucial role in contributing to North American supply chain and strategic security, in its capacity to make stainless steels," said KWG President Megan McElwain. "It is wonderful to have Natural Resources Canada prove the genius of the late Frank Winter, a 'melt shop' virtuoso. We are sorry he left us before he could celebrate his very important scientific breakthrough."