KWG considering whether Cliffs' amended offer respecting proposed combination of KWG and Spider is a Spider Superior Proposal

MONTREAL, Jun 28, 2010 (Canada NewsWire via COMTEX News Network) --

<< Symbol on TSX Venture Exchange: KWG Shares issued and outstanding: 589,549,206 >>

KWG Resources Inc. (KWG) has received notification from Spider Resources Inc. (Spider) that Cliffs Natural Resources Inc. (Cliffs) has amended its offer in response to Spider accepting KWG's matching offer, as announced on June 25, 2010 in the joint press release of KWG and Spider, and that the board of directors of Spider has determined such amended offer to be a Spider Superior Proposal (as defined in the combination agreement among KWG, its wholly-owned subsidiary, 7569076 Canada Inc (KWG Subco) and Spider dated as of June 11, 2010 (the Combination Agreement)).

KWG, in consultation with its financial adviser, Canaccord Genuity Corp., is considering whether Cliffs' amended offer is in fact a Spider Superior Proposal.

KWG has the opportunity, but not the obligation, to offer in writing to amend the terms of the Combination Agreement and the amalgamation of Spider and KWG Subco (the Amalgamation) before 12:01 a.m. on July 6, 2010. In order to enter into an agreement with respect to Cliffs' amended offer or otherwise accept, approve or recommend Cliffs' amended offer, Spider will be required to terminate the Combination Agreement and, on or prior to the date of such termination, to pay to KWG a cash payment equal to $2,300,000.