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KWG clarifies Debuts Diamonds prospectus

11:00 EDT Tuesday, October 28, 2008

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    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 269,659,821
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MONTREAL, Oct. 28 /CNW/ - KWG Resources Inc. (TSXV: KWG) advised on August 28th, 2008 that it has received a receipt for filing of the preliminary prospectus of its subsidiary Debuts Diamonds Inc. ("Debuts"). The purpose of the filing of this prospectus is to allow Debuts to qualify as a reporting issuer in Ontario.

As previously published, KWG has transferred all of its diamond exploration interests to Debuts in order to facilitate delivery of their value to KWG's shareholders, possibly as a tax-free return of capital via a dividend of some or all of the shares of Debuts, however KWG has not yet made a final decision among its various possible business strategies for Debuts and a tax-free return of capital is not a certainty at this time.

In the event that KWG delivers a tax-free return of capital via a dividend of some or all of the shares of Debuts, KWG would apply to have the shares of Debuts listed on a recognized stock exchange to facilitate trading upon the expiry of any hold periods attaching to such shares. A dividend record date would be determined only after receipt of all necessary regulatory approvals.

The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations. The Company assumes no obligation to update such forward-looking statements. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
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For further information: Bruce Hodgman, Communications Director, Direct: (416) 646-1374, info@kwgresources.com; Michel Côté, Director, Tel: (514) 866-6001 - Ext. 266; Or visit our website: www.kwgresources.com