All KWG Longs,

We have been given another chance to vote as KWG Management has postponed the AGM. I ask all of you to see this extra time as a gift and to READ THE KWG RESOURCES INC. NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS and the RESOLUTIONS contained in this document. Use this as an opportunity to educate yourself and make an informed and confident vote in your company and this management team.

There has been some discussion on this board as to why management is doing this.

I direct you to page 19 of the NOTICE:

“The Corporation intends to create two new classes of shares, namely Subordinate Voting Shares and Multiple Voting Shares, as described below, to replace its outstanding Common Shares. Currently, given the current trading price of the Common Shares on the Exchange, the Common Shares are not marginable. The Corporation has determined that it would be better positioned to take advantage of opportunities to acquire additional assets in exchange for its securities if the Common Shares were marginable, as any such acquisition or other similar transaction would be more attractive to any potential counterparty. By virtue of creating the new classes of shares, the Corporation expects that the completion of any such transactions could be facilitated and therefore beneficial to the Corporation.”

I have said it before and I will say it again…this is not a share consolidation or reverse split. Anyone that wishes to make that claim I invite them to provide the specific quote from the NOTICE to back it up. Frank has something strategic up his sleeve and this is part of it. The share restructure is to attract larger investors beyond us retail investors and perhaps to “…take advantage of opportunities to acquire additional assets in exchange for its securities if the Common Shares were marginable…”. Could Frank be looking to end the Option Agreement with Bold and buy them? Could Frank be eyeing Noront? Maybe buy Cliff’s share of Big Daddy? There is more at play here and I invite you to place your confidence in KWG again - the first time was when you bought the KWG shares you currently own.

Further, There has been some speculation about what management may do post-share restructure including the suggestion that management will cancel the subordinate shares in favour of the Multiple Voting Shares, effectively causing a share consolidation. For those of you that are of this thought, I refer you to Schedule D clause 3 subsection 3.1 wherein KWG management discloses the issue of Anti-Dilution: “ Neither class of Participating Shares shall be subdivided, consolidated, reclassified or otherwise changed unless contemporaneously therewith the other class of Participating Shares is subdivided, consolidated, reclassified or otherwise changed in the same proportion and in the same manner so as to preserve the rights conferred hereby on each class in relation to the other class.” I draw your attention to the term “…in the same manner so as to preserve the rights conferred hereby on each class in relation to the other”…one share class exists and trades in lock-step with the other and neither share class can be cancelled nor changed without the other. I do not believe that management will be able to do this post share restructure.

Please read the NOTICE and educate yourself. This management team has proved themselves time and time again – any other junior in their position would be out of business by now. Give Frank and the management team at KWG the tools they need to finish the job and to light the ROF.

All the best to all KWG Longs,

Keep Digging