Symbol on TSX Venture Exchange: KWG

Shares issued and outstanding: 589,549,206

MONTRÉAL, Oct 1 /CNW/ - KWG Resources Inc. ("KWG") is pleased to report that it has commenced recovery of a 2-tonne bulk sample from the Big Daddy chromite deposit under the programs recommended by the Technical Committee to bring forward the understanding of the economic merits of the Big Daddy deposit. The bulk sample will be used for test work to determine the metallurgical properties and indicated beneficiation parameters of the deposit. The sample will be taken with large-diameter HQ core recovered by diamond drilling over the next number of days. The drilling operation is being conducted from the Esker Camp of Freewest Resources Canada Inc. ("Freewest") before the Freewest-contracted crews demobilize their recent campaign of in-fill drilling at the adjacent Black Thor chromite deposit.

KWG has retained Behre Dolbear to provide guidance on the metallurgical and beneficiation test work.

Once the demobilization of Freewest crews has been completed, KWG will mobilize its crews into the camp to begin the previously-announced drilling program on the Big Daddy deposit, which is expected to start by November and be completed before year's end. That drilling program of at least twelve deep drill holes is designed to confirm that the chromite resources continue to depth below those previously reported as an indicated resource of 23.2 million tonnes averaging 40.66% Cr(2)O(3), and an inferred resource of 16.3 million tonnes averaging 39.09% Cr(2)O(3). It is anticipated that the planned drill holes will permit the inferred resources to be largely included into the indicated category to thus enable mine planning and economic modeling.

KWG has also initiated discussions with Spider Resources Inc. ("Spider") for the planning of the program in the next option period commencing April 1, 2011 and ending March 31, 2012. Under the option agreement's terms, KWG and Spider may each earn a further 2% interest in the Big Daddy deposit (to a total interest of 30% each) from Freewest by contributing $2.5 million to such program, or paying an equal sum in lieu thereof by March 31, 2012. A joint venture will then be formed for the development and mining of the deposit, with mined material being divided in kind to each of the joint-venturers. Spider has confirmed its intention to participate with KWG in completing the final option earn-in program.

M. J. (Moe) Lavigne, P. Geo., Vice-President of Exploration & Development for KWG, is the Qualified Person supervising the proposed program and has approved the contents of this release.