KWG retains Middleton, Lavigne & Co and options "Feeder" claims in Ring of Fire

    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 263,659,821

    MONTREAL, July 23 /CNW/ - KWG Resources Inc (TSXV: KWG) has retained
renowned geologists Robert Middleton and Maurice Lavigne to manage and direct
the company's exploration programs in the Ring of Fire in northern Ontario.
Operatorship of the joint venture between KWG, Spider Resources Inc. and
Freewest Resources Canada Ltd. is rotated annually between KWG and Spider; KWG
will be operator of the JV in 2009. KWG and Spider, on a 50%/50% basis, may
earn up to a 65% interest from Freewest in the 4 claims near the Noront Eagle
1 discovery. A discovery of chromitite is now being followed up with further
drilling of that target and other adjacent geophysically-identified targets in
the KWG/Spider JV's claim group.
    KWG will, coincidently, acquire an option to earn up to a 65% interest
from East West Resources Corporation in its "Feeder Claims". The 12-claim
group south of the Ring of Fire was identified by Middleton and Lavigne as
having potential to contain a magma feeder conduit similar to the host of the
Eagle 1 discovery. KWG will issue 2 million shares and pay $50,000 for the
option; it must incur exploration expenditures of $250,000 in each of 2008 and
2009 to earn 50% and an additional $1.5 million by August 2012 to earn 60%. An
additional 5% may be earned in any mineral deposit discovered by KWG providing
development and production financing.
    "Bob Middleton is one of the best known Canadian mineral explorationists
of our generation", said KWG president Frank Smeenk. "He was in or at many of
the major discoveries made in Canada in the last four decades and, as usual,
has thought carefully about the geology of the Ring of Fire area. Bob and Moe
Lavigne are also two outstanding examples of how the Ontario government
formerly recruited some of the best and brightest earth scientists, early in
their careers. We are delighted to have the opportunity to collaborate with
these most experienced explorationists."
    Mr. Middleton graduated from Michigan Technological University with a
degree in Geophysics. He worked with the Ontario Department of Mines from
1969-1971 as their first staff geophysicist. From 1971-1974, he was employed
as Manager of Airborne Operations by Barringer Research Limited. He was
Exploration Manager and V.P. of Exploration for Rosario Resources from
1974-1980. He then moved to Newmont of Canada where he was Exploration Manager
for Eastern Canada. Since 1983 to the present, he has been an exploration
consultant to many major and junior mining companies. In 1984 he.formed Glen
Auden Resources which subsequently became Maple Minerals and is now Mega
Uranium (TSX: MGA). In 1987 his Golden Dragon Resources merged with Goldrock
Resources to become Canadian Golden Dragon Resources which subsequently became
Trillium North Minerals Ltd. (TSXV: TMN). In 1988 he formed Cross Lake
Minerals Ltd., which made an important zinc/silver/lead discovery in Timmins
in 1997. In 1992 his Colby Resources formed Canplats Resources Corporation
    Mr. Lavigne is a native of Timmins, Ontario who has over thirty years
experience in the mineral exploration and mining industries and a track record
of success in discovery and mine development. After completing his H.B.Sc. in
Geology from Brock University and M.Sc. in Geology at McMaster University, Mr.
Lavigne joined the Ontario Geological Survey in 1983 to conduct research on
gold deposits. In 1984 he became the Resident Geologist for the Red Lake
District and transferred to Thunder Bay in 1988. From 1997 to 2004 he managed
North American Palladium's exploration program at Lac des Iles, and throughout
North-western Ontario. The discovery of 10 million ounces of palladium led to
the construction of a 15,000 ton per day mining operation at Lac des Iles.
From 2004 to 2008 he was Vice President of Galantas Gold Corporation in
Northern Ireland and managed the construction of Ireland's first gold mine.
    KWG will pay an annual retainer to each of Messrs. Middleton and Lavigne,
for their professional services. Each of them will subscribe $100,000 to a
private placement of treasury units of KWG at $0.10; each unit is comprised of
2 shares and 1 share purchase warrant exercisable for 2 years at $0.10.


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For further information: BRUCE HODGMAN, Communications Director, Direct:
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