KWG to drill Ring of Fire claims near Eagle One discovery

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

    MONTREAL, June 27 /CNW/ - KWG Resources Inc. (TSXV-KWG) will resume
drilling in the next few weeks at the Freewest Option claims in the Ring of
Fire area of Northern Ontario. At the KWG annual meeting last Friday,
shareholders were advised that drilling will commence at the Freewest Option
claims, located near the Noront Resources Ltd nickel, chrome and platinum
group metals discoveries, to expand the important chromitite mineralization
identified earlier this year and test other geophysically-identified targets.
    Assays from the first 2008 hole FW-08-05 returned Chromitite (Chrome
Oxide, Cr(2)O(3)) grades as high as 35.6% over 7.5 metres. Other layers show
enrichment in platinum and palladium as high as 1.0 g/t (Pt + Pd) over
4.3 metres as well as enrichment in nickel as high as 0.25% Ni over 3 metres.
KWG regards the Chromitite assay results as significant because this
chrome-PGE-nickel discovery evidences an apparent continuation of the
mineralized trend also hosting the Noront Eagle 1 and Eagle 2 discoveries.
    KWG & Spider Resources Inc, are joint venture partners in the Freewest
Option and may together earn up to a 65% operating interest in the claims
optioned from Freewest Resources Canada Inc.

    Drilling for diamonds to begin on MacFadyen Kimberlites: Shareholders
were also advised that KWG's wholly-owned subsidiary, Debuts Diamonds Inc, has
contracted a helicopter-moveable drill rig to drill at least two untested
targets on the MacFadyen Kimberlite claims. The targets were identified by the
analysis of the earlier geophysical data acquired in the MacFadyen claims.
Camp construction has commenced for mobilization of the drill rig. Drilling is
expected to begin in approximately three to six weeks.
    The MacFadyen Kimberlites property is located in the James Bay Lowlands
of northern Ontario. The property is on the south shore of the Attawapiskat
River about 66 miles (105 km) west of Attawapiskat. Exploration on the
MacFadyen Kimberlites has identified small quantities of commercial sized
diamonds in 2007. The MacFadyen Kimberlites consists of 5 claims, totalling
about 1,661 acres or 672 hectares, adjacent to the De Beers' Victor Mine. The
Victor Mine began diamond production in January 2008.
    A bulk-sampling program of the MacFadyen Kimberlites had not been able to
proceed as planned earlier this year, because the available
reverse-circulation drill had been employed by De Beers for a sampling program
at the adjacent Victor Diamond Mine. The remaining cold-weather season had
then been insufficient to employ the rig over ice conditions for the sampling
program wanted at MacFadyen. Debuts Diamonds now plans instead to conduct a
limited sampling program of indicator minerals this summer on the adjacent
claims previously acquired from Pele Mountain Resources Inc, in addition to
the drilling of the geophysical anomalies.

    Transfer of diamond prospects to Debuts: As previously announced KWG has
completed the transfer of all its diamond exploration assets on April 29, 2008
to Debuts Diamonds Inc. This includes six diamond prospects in the following
claim groups: MacFadyen Kimberlites, Pele, Uniform Surround, Wawa Joint
Venture, Kyle Joint Venture and diamond rights only in the Diagnos Initiative
Joint Venture. KWG continues to hold directly the interests in the Freewest
Option, the McFauld's Lake Joint Venture optioned to UC Resources Ltd and the
non-diamond assets of the Diagnos Initiative Joint Venture.
    Debuts Diamonds is completing an audit for inclusion in a non-offering
prospectus by which it will seek to qualify itself as a reporting issuer in
Ontario. As previously announced, it is planned to distribute the majority of
the currently outstanding shares of Debuts Diamonds Inc as a tax-free return
of capital to the holders of KWG's issued shares outstanding at the record
date of the dividend. The record date will be determined when a receipt has
been issued for the prospectus.

    KWG's directors re-elected at annual meeting: Messrs. Michel Côté,
Douglas Flett, Michael Harrington, Leonard Teoli, Dr. Mousseau Tremblay and
Frank Smeenk were re-elected as directors of KWG at the meeting of KWG
shareholders held in Montreal on June 20, 2008. Dr. Tremblay was re-elected
Chairman of the KWG Board of Directors following the meeting and Messrs.
Harrington and Smeenk were re-appointed Vice-Chairman and President,
respectively. Luce Saint-Pierre was re-appointed as Secretary and Martin
Nicoletti as CFO.


For further information:

For further information: BRUCE HODGMAN, Communications Director, Direct:
(905) 582-9744,; MICHEL COTE, Director, (514) 866-6001
ext. 266, Or visit our website:

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