PRELIMINARY METALLURGICAL TEST WORK ON THE BIG DADDY CHROMITE

The Joint Venture partners commissioned James R Guilinger of World Industrial Minerals, of Arvada, Colorado to perform initial investigations into the metallurgical characteristics of samples selected from the project. Mr. James Guilinger is a Registered Member (RM) with the Society of Mining Engineers (SME) and a Qualified Person (QP) as such term is defined under National Instrument 43-101 with the Mining and Metallurgical Society of America (MMSA). His work entailed a petrographic examination and XRF/XRD analyses on 8 selected split core samples from earlier drill-hole intercepts within the main massive chromite zone at the Big Daddy Chromite occurrence. These samples were selected from holes FWR-08-05 and FWR-08-07. The results presented herein are preliminary in scope, much more metallurgical work and beneficiation studies need to be performed.

World Industrial Minerals utilized Phillips Enterprises, LLC of Golden Colorado to perform beneficiation tests on the quarter core samples submitted. The general scope of the initial metallurgical test work was to provide information on the various processing techniques typically used to beneficiate chrome, to determine the preferred general process required to up-grade the chromite at the Big Daddy to a saleable product. As part of the metallurgical study, Phillips Enterprises in conjunction with World Industrial Minerals (under the auspices of Mr. James Guilinger), used DCM Science Laboratory of Wheat Ridge, Colorado to provide X-ray Diffraction (XRD) analysis as well as petrographic analysis on the samples to provide information needed with respect to mineralogy and chromite content in the selected samples. Assay determinations were provided by The Mineral Lab Inc. of Lakewood Colorado. The assay technique used by The Mineral Lab was X-Ray Fluorescence (XRF).

The following is a summary of the Guilinger’s report:

Beneficiation tests on the samples were completed at Phillips Enterprises as follows:

1. Core samples used for the test work were crushed and blended to –70 + 140 mesh in a rod mill;
2. Crushed material was screened at –140 mesh and sent to a flotation circuit. The –70 mesh + 140 mesh was sent to a gravity circuit that consisted of a gravity sorting table;
3. Two products were made from the gravity circuit; a) concentrate and b) the ‘middlings’;
4. A float concentrate product was made from the –140-mesh material.

The initial crushed and screened sample plus all of the resulting products were analyzed at Hazen Research of Golden Colorado. The samples were fused with sodium peroxide. The melt was dissolved and diluted to volume in 10% HCl and then analyzed by Atomic Absorption for Cr2O3 with the following results:

● Head grade of composite sample was 37% Cr2O3. The chemically analyzed head grade is slightly higher than the calculated weight percent of the XRF results listed above.

● The gravity separation of the –70 + 140 mesh material shows a Cr2O3 recovery of 47% based on the total sample. The gravity concentrate grade (concentrate plus middling) was 49% Cr2O3.

● The flotation separation on the –140 mesh fraction shows a Cr2O3 recovery of 28% based upon the total sample. The flotation grade was determined to be 43% Cr2O3.

● In summary, 74% of the chromite contained in the composite sample was recovered using a combination of floatation and gravity separation techniques, this concentrate has an average grade of 46.6% Cr2O3.

● Jim Guilinger states “ The processed cores easily exceed the minimum 40% Cr2O3 grade threshold that the market place prefers”

Overall, it was concluded that the ferrochrome product from the aforementioned testing provides a concentrate that is very close to meeting specifications for the largest consumers of chromite (ferrochrome), representing about 95% of the market. The material definitely qualifies for the foundry sand application, which represents about 3% of the market. It was noted that “With optimization of the gravity and flotation it should be possible to create a product suitable for approximately 98% of the world markets. In these two markets approximately 18.4 million tons of chromite were consumed in 2005.”

Mr. Guilinger in his report recommended the following:

1) Continue with the beneficiation to optimize chromite recovery and reduce the silica content to > 3% (on representative samples of the deposit as a whole); and

2) Discuss chrome product specifications with potential consumers.

This press release has been prepared by management of Spider Resources Inc., which is the operator of the joint venture with KWG during 2008, and has been approved for dissemination by Neil Novak P.Geo, President of Spider and a Qualified Person as such term as defined under National Instrument 43-101, who has reviewed and verified the technical information contained in this press release and has approved the contents of this press release.

For further information, please contact:

Bruce Hodgman
Communications Director
Direct: 416- 646-1374
info@kwgresources.com

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