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MIDDLETON, LAVIGNE SUBSCRIPTIONS COMPLETED

Montréal, Canada – August 25, 2008 – KWG Resources Inc. (TSXV – KWG) reports that it has completed private placements announced earlier this summer. Professional Geologists Robert Middleton, Maurice Lavigne and Paul Nielsen were retained by KWG to undertake its exploration programs at the newly optioned Feeder Claims and under KWG’s operatorship next year of the KWG-Spider-Freewest JV. The Company issued 2,000,000 units at $0.10 each. Each unit is comprised of two (2) common shares and one (1) share purchase warrant exercisable for two years at $0.10. All securities issued are subject to a four-month hold period ending December 20, 2008. Proceeds will be used for working capital.

KWG has been advised that as of August 22nd, 2008 its former principal shareholder Diagem Inc. had reduced its holdings of KWG shares to approximately 8 million shares, representing less than 3% of the Company’s outstanding shares.

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For further information, please contact:

Bruce Hodgman

Communications Director

Direct: (416) 646-1374

info@kwgresources.com

Or visit our website: www.kwgresources.com

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the adequacy or accuracy of this press release.

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KWG Resources Inc.

630 Rene Levesque Blvd. West

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Montreal QC H3B 1S6

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