Attention Business Editors:

KWG Resources Inc. - stock options

    Symbol on TSX-Venture Exchange: KWG
                      Shares issued and outstanding: 263,563,821
                  
                      MONTREAL, Feb. 29 /CNW/ - KWG Resources Inc. (TSXV - KWG) announces that
                  the Board of Directors approved, subject to the approval of regulatory
                  authorities, an increase in the number of common shares reserved for issuance
                  under the Company's stock option plan to 26,280,000. The approved maximum
                  number represents approximately 10% of the current number of shares issued and
                  outstanding. The Board granted a total of 2,391,600 options of which 1,622,400
                  were granted to the directors, 396,000 to officers who are not also directors,
                  and 372,200 to employees and consultants of the Company.
                  
                      The TSX Venture Exchange has not reviewed and does not accept
                      responsibility for the adequacy or accuracy of this press release.
                  
                  
                  
                  

For further information: Bruce Hodgman, Communications Director, Direct:
                  (905) 582-9744, info@kwgresources.com; Michel Côté, Director Telephone: (514)
                  866-6001-Ext. 266, Fax: (514) 866-6193 Or visit our website:
                  www.kwgresources.com