KWG appoints Lavigne VP Exploration and Development

    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding:  374,718,877

    MONTREAL, Aug. 11 /CNW/ - KWG Resources Inc. (TSX-V: KWG) ("KWG" or the
"Company") is pleased to announce the appointment of Maurice J. Lavigne,
P.Geo., as Vice-President of Exploration and Development of the Company and
its operating subsidiary Canada Chrome Corporation. The well-known and
widely-published former Ontario Resident Geologist at Red Lake and Thunder Bay
had key roles in expanding North American Palladium's reserves at their Lac
des Iles mine and in the subsequent feasibility study, financing and plant
construction. More recently, he was Vice President of Galantas Gold
Corporation, where as Mine Manager, was involved in financing and construction
of a gold mine in Northern Ireland.
    "With the commitment of Cliffs Natural Resources to pursue the prospect
of producing and marketing ferro-chrome to its steel-making customers, the
discoveries of the Big Daddy and adjacent chromite deposits in the Ring of
Fire represent a development opportunity unlike anything seen in Canada since
the opening of the Labrador iron mines sixty years ago," said KWG President
Frank Smeenk. "We feel very fortunate to have been able to recruit Moe to this
opportunity, as both his recent and past experience suit him perfectly for the
job at hand".
    The Company has also appointed Robert S. Middleton, P. Eng., as Director,
Aboriginal & Regulatory Affairs for Canada Chrome Corporation. "Bob is another
icon in our industry and there is perhaps no one better fitted to manage the
issues affecting the lands, communities and agencies that this potential
development will affect," said Smeenk.
    The Company also announced the appointment of R. Russell Martel as
Director, Research and Planning for Canada Chrome Corporation. "Russell's
years of finance and mining industry experience match ideally the task of
compiling the research required to inform the unique challenges we anticipate
in the documentation and funding of a project of this magnitude, with initial
cost estimates of the order of $1.5 Billion," explained Smeenk.

    Forward Looking Information:

    This press release contains certain "forward-looking statements". 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 (including, without limitation, statements relating to the
commitment of Cliffs Natural Resources to pursue the prospect of producing and
marketing ferro-chrome to its steel-making customers, or the development and
financing of the Big Daddy and other chromite deposits) are forward-looking
statements. These forward-looking statements reflect the current expectations
or beliefs of KWG based on information currently available to KWG.
Forward-looking statements are subject to a number of significant risks and
uncertainties and other factors that may cause the actual results of KWG to
differ materially from those discussed in the forward-looking statements, 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 failure of
Cliffs Natural Resources to pursue the prospect of producing and marketing
ferro-chrome to its steel-making customers, or failure to complete the
development and financing of the Big Daddy and other chromite deposits.
    Any forward-looking statement 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 statement,
whether as a result of new information, future events or results or otherwise.
Although KWG believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guaranteed of
future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.

    About KWG Resources Inc.

    KWG Resources is a mineral exploration company with extensive claim
holdings in the James Bay Lowlands of Northern Ontario, Canada, where
important discoveries of nickel and chrome have been made recently in the Ring
of Fire. KWG has an equal joint venture interest in a large claim block in the
central part of the discovery area, with Spider Resources Inc. The joint
venture is developing the Big Daddy chromite deposit adjacent to the Black
Thor and Black Label chromite discoveries of Freewest Resources. KWG holds a
1% net smelter royalty in all three deposits and has created Canada Chrome
Corporation to pursue the development of them.

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    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this news release