TORONTO, ONTARIO--(Marketwired - April 2, 2014) - KWG Resources Inc. (TSX VENTURE:KWG) ("KWG") is pleased to report that further laboratory tests on the reduction of the Black Horse chromite using natural gas have been completed. The results of these tests provide substantial encouragement that the newly developed method may be utilized to convert the Black Horse chromite into a metallised chrome and iron alloy. During these tests by XPS Consulting & Testwork Services - a Glencore Company, this chromite, blended with suitable solid carbon as reductant, was reduced in the solid state at atmospheric pressure in the presence of reformed natural gas to produce the alloy.

Reactions commenced at 900°C when a suitable accelerant was used to enhance the reactions - substantially lower than is usual for chromite ores. In addition, the time required for the reductants to convert the oxide ore to alloy was substantially less than one hour - much faster than established direct reduction methods have produced.

Based on these tests only, preliminary estimates provided in a report indicate that very substantial energy savings result. The study suggests that overall direct energy costs to process one tonne of concentrate into metallized ferrochrome alloy are less than half those required for conventional technology. In addition, the process has a considerably lower greenhouse gas emission footprint and greatly reduced impact on the environment. Capital costs are estimated to be significantly lower than those for conventional processes utilizing electrical energy. As previously reported, an international patent of the method is being pursued.

About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite occurrence where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

Arthur Barnes FSAIMM, Principal Consultant at XPS Consulting & Testwork Services - a Glencore Company together with M. J. (Moe) Lavigne, P. Geo., Vice-President of Exploration & Development for KWG, are the Qualified Persons who have reviewed and approved the contents of this release.