Spider Resources loses $316,801 in Q1
Ticker Symbol: C:SPQ

Spider Resources loses $316,801 in Q1

Spider Resources Inc (C:SPQ)
Shares Issued 476,336,465
Last Close 5/28/2010 $0.135
Monday May 31 2010 - News Release

Mr. Neil Novak reports

ISSUE OF MARCH 31, 2010, INTERIM UNAUDITED FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS

Spider Resources Inc. has filed its unaudited interim financial statements and management's discussion and analysis for the three months ended March 31, 2010, on SEDAR. They are also available on the Company's website at www.spiderresources.com.

Highlights during and subsequent to the quarter ended March 31, 2010:

• -- The Company reported a net loss for the three months ended March 31, 2010, of $316,801 ($0.00 per share);
• -- The Company had a cash position of $3,731,461 as of March 31, 2010;
• -- The Company completed the final tranche of its private placement on January 22, 2010, which was previously announced on December 16, 2009. An aggregate of 9,823,336 flow-through units, at a price of $0.06 per unit, and 23,310,000 non-flow-through units, at a price of $0.05 per unit, were issued to subscribers on January 22, 2010, for aggregate gross proceeds of $1,754,900. Each flow-through unit consists of one common share (issued on a flow-through basis) and one non-flow-through common share purchase warrant. Each unit consists of one common share and one warrant. Each full warrant entitles the holder to acquire one common share (which share will not be issued on a flow-through basis) at a price of $0.10 for a period of two years from the applicable closing date.
• -- On May 24, 2010, Cliffs Natural Resources Inc. ("Cliffs") announced that it intends to make take-over bids for all of the issued and outstanding common shares (not already owned by Cliffs or its affiliates) of KWG Resources Inc. ("KWG") and/or Spider for cash consideration of $0.13 per share. Cliffs advised that neither bid would be conditional upon the completion of the other. The board of directors of each of Spider and KWG has formed an independent special committee to consider the bid by Cliffs, which was made on May 31, 2010.

On May 25, 2010, Spider and KWG entered into a binding letter agreement which sets out the principal terms upon which it is proposed that the two corporations will complete a merger, at the conclusion of which the shareholders of each of Spider and KWG will hold 50% of the outstanding shares of the going public corporation.

Please refer to the May 25, 2010 press release of Spider filed on Sedar at www.sedar.com for further information.