WGI Heavy Minerals Provides Update on the Sale of Transworld Garnet India Investment



    COEUR D'ALENE, ID, Sept. 5 /CNW/ - WGI Heavy Minerals, Incorporated (WGI)
(TSX: WG) today announced that the sale of the Company's interest in
Transworld Garnet India (TGI) to V.V. Mineral, announced on a June 11, 2008
has closed in escrow as originally planned.
    Rupees 487,354,192, in respect of outstanding inter-company debts due to
WGI from TGI, and Rupees 253,082,427, in respect of WGI's portion of the
proceeds from the sale of shares, have been deposited in escrow with two
Indian banks for repatriation to the Company's bank accounts in Canada. The
purchase agreement entered into by the Company contemplated a period of escrow
prior to the full completion of the sale because of the currency control
regulations in India. It was originally estimated that it would take up to two
weeks to confirm the repatriation of funds could be commenced. The process to
begin repatriating the funds has taken longer than expected because the bank
holding the funds to repay the inter-company amount has delayed wiring funds
to the Company's Canadian bank accounts by requesting authorization to do so
from the Reserve Bank of India.
    While WGI expected the approvals to occur in August, the sale currently
remains intact with only the delay in repatriating the funds back to Canada
not proceeding as expected. The escrow is in place until September 30, 2008
and the Company expects the necessary approvals to occur prior to that date,
which is also the deadline for the closing of the sale to V.V. Mineral. During
this time, the Company and VV Mineral are in regular communication and the
companies are working together to ensure the smoothest possible transition of
supply.

    About WGI

    WGI Heavy Minerals, Inc. is a marketer of industrial grade minerals
sourced primarily out of India, a producer of industrial-grade garnet out of
Idaho and Germany, and a manufacturer of replacement parts for ultra-high
waterjet cutting systems in the U.S.. The Company's shares are listed on the
Toronto Stock Exchange under the symbol WG.

    This press release contains forward-looking statements concerning the
business, operations, and financial performance and condition of WGI Heavy
Minerals, Incorporated. A number of the matters discussed and statements made
in the press release contain forward-looking statements reflecting current
expectations regarding future assets. When used in this press release, the
words "believe", "anticipate", "intend", "estimate", "expect", "project", and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such words. These
forward-looking statements are based on current expectations and are naturally
subject to risks, uncertainties, and changes in circumstances beyond
management's control that may cause actual results to differ materially from
those expressed or implied by such forward-looking statements. Factors that
may cause such differences include but are not limited to: exploration and
development risks; risks related to permits and title to property; risks
related to foreign countries and regulatory requirements; operating hazards;
foreign currency fluctuations; competition; fluctuations in the market price
of mineral commodities and transportation costs; uncertainty as to
calculations of mineral deposit estimates; uninsured risks; and dependence
upon key management personnel and executives. Actual results may differ
materially from those expressed here. You should not place undue reliance on
such forward-looking statements. The Company is under no obligation to update
or alter such forward-looking statements, whether as a result of new
information, future events, or otherwise.





For further information:

For further information: Ed Kok, Investor Relations, 810 Sherman Ave.,
Coeur d'Alene, ID, 83814, U.S.A., Phone (208) 770-2208, E-mail
ed@wgiheavyminerals.com, www.wgiheavyminerals.com

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WGI Heavy Minerals, Incorporated

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