Canada Chrome Corporation (“CCC”) was created as a wholly-owned subsidiary of KWG. CCC has staked mining claims covering a unique linear sand ridge that stands proud of the vast wetlands. This sand ridge is well suited for a railroad embankment which could be created for transporting materials into the discovery area as well as transporting the mined ores out. Krech Ojard & Associates have been engaged to undertake pre-feasibility engineering of the embankment alignment and water crossings. This is being supported by a geotechnical study being carried out by Golder Associates who collected soil samples from 744 borings using hollow stem auger drills. The sampling along the 330 kilometre study corridor was completed in May 2010. The pre-feasibility level engineering document will enable informed consultations with affected First Nations and all other local and regulatory constituencies, on the feasibility of constructing a railroad.

Since core drilling first intersected chromite on the "Freewest Option" property in 2006, a total of 43 holes were directed to delineate the Big Daddy chromite deposit to a depth of 365 metres. Subsequent to the completion of the winter drilling 2010 program, Micon International Limited, "Micon", was engage to estimate the chromite resource. The results, first reported in a press release on May 3, 2010, are contained in a 43-101 compliant report filed on SEDAR on June 7, 2010, (Spider Resources Inc. And KWG Resources Inc. Technical Report On The Mineral Resource Estimate For The Big Daddy Chromite Deposit McFaulds Lake Area, James Bay Lowlands, Northern Ontario, Canada). Micon estimated that the "Massive Chromite Domain" contains an indicated resource of 23.2 million tonnes averaging 40.66% Cr2O3, and an additional inferred resource of 16.3 million tonnes averaging 39.09% Cr2O3. By comparison, Outokumpu's Kemi Mine in Finland has ore reserves of 41.1 million tonnes averaging 24.5% Cr2O3. The much higher grades of the Big Daddy compare favourably with those deposits whose ore is shipped directly to foundries with minimal processing. This potential is being investigated.

KWG and Spider have each earned a 28% interest in the Freewest Option property, each with options to earn another 2.0% this year for each incurring $2.5 million of additional exploration expenditures. When those are completed a joint venture will be formed and its operator will be selected by the holders of a majority of the JV interests. The Freewest non-operating interest in the Big Daddy deposit as well as its adjacent Black Thor deposit are now the property of Cliffs after it recently acquired all of the outstanding shares of Freewest and Spider.

Significant recent developments include:

KWG Proposes Big Daddy Scoping Study And Rail Feasibility Study

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