cnw

Symbol on TSX Venture Exchange:


KWG

Shares issued and outstanding:


623,458,941



MONTREAL, Canada, Jan. 18 /CNW/ - KWG Resources Inc. (TSXV: KWG) has extended invitations to the Chiefs of five First Nations
in the Ring of Fire area to join the Board of Directors of its subsidiary Canada Chrome
Corporation ("CCC").


"Late last year we advised Chiefs Elijah Moonias, Cornelius Wabasse,
Sonny Gagnon, Roy Moonias and Lewis Nate that there appeared to be
technical and economic merit to proceeding with a feasibility study of
the railroad for which we have staked a right-of-way and sampled soil
profiles," said KWG President Frank Smeenk. "Should subsequent development ensue which physically affects their
traditional lands, there must first be prior consultation and
accommodation, as is well understood by all constituencies. The entire
Matawa family of First Nations is enthusiastic to see these
developments progress. To facilitate and expedite the process, we felt
that the extensive consultation necessary could be most effectively
undertaken by having the leading members of the five most directly
impacted communities participate in the corporate planning from the
outset. In this way those who are most affected by these hoped-for
developments can become the proponents of them."


Golder Associates were retained by CCC to conduct testing of the soil
profiles from samples taken last winter at 1000-foot intervals along
the length of the potential right-of-way. The voluminous data generated
from these tests will be incorporated into a design and construction
model being prepared by Krech Ojard & Associates, the railroad
engineering firm retained by CCC. Estimates for embankment construction
may then be combined with estimates for bridge construction to
determine a potential total cost estimate and possible construction
timetable in a preliminary feasibility study. Such a preliminary study
would describe the economic parameters and environmental issues that
must be considered in the consultation process.


KWG also advises that its Board of Directors has awarded options to
purchase 11 million treasury shares at $0.10 each under the provisions
of the Company's Employee Incentive Stock Option Plan. Of the total
awards, 2.5 million were allocated to employees and consultants of the
Company and of its subsidiaries, 2.5 million to directors, 2.5 million
to directors who are also officers, and 3.5 million to officers of the
Company and of its subsidiaries. The options vest over a period of 18
months and are exercisable over a period of five years.


The Company has also extended the completion of its previously announced
private placement of flow-through shares to January 31, 2011.




Forward-Looking Information

This news release contains or refers to forward-looking information. All
statements, other than statements of historical fact that address
activities, events or developments that KWG believes, expects or
anticipates will or may occur in the future are forward-looking
information. Such forward-looking information includes, but is not
limited to, statements regarding KWG's invitation to the Chiefs joining
the board of directors of CCC and the completion of the previously
announced private placement.


This forward-looking information reflects the current expectations or
beliefs of KWG based on information currently available to it. In
connection therewith, certain factors and assumptions have been
considered, including (without limitation) failure by the Chiefs to
accept the invitation to join the CCC board of directors and failure to
commence, complete or attain positive results from the railroad
feasibility study, and eventual construction, financing and permitting
risks associated with railway construction. Although KWG believes that
the assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of future
actions and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein.


Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results to differ materially
from the conclusions or forecasts discussed in the forward-looking
information, and, even if such actual results are realized or
substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on KWG. Factors that could
cause actual results or events to differ materially from current
expectations include, but are not limited to: the railroad feasibility
study producing unfavourable results, inability to complete the
construction of the railroad due to construction problems or inability
to obtain required permits, inability to obtain financing from
investors, and considerations and risks normally incidental to
exploration and development of, and production from, mineral properties
and/or adverse changes in securities markets, economic and general
business and financial conditions.


Forward-looking information speaks only as of the date on which it is
made and, except as may be required by applicable securities laws. KWG
disclaims any intent or obligation to update any forward-looking
information, whether as a result of new information, future events or
results, or otherwise.


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Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.




For further information: Bruce Hodgman Communications Director 416-646-1374 info@kwgresources.com