Montréal, Canada – KWG Resources Inc. (“KWG”) advises that its drilling program at Big Daddy is expected to be completed in the first two months of the New Year. Although the drilling platforms were constructed during the recovery of the bulk sample, it was determined that the efficiencies achievable from cold-weather operations would reduce costs by more than $300,000 for the planned program, by almost completely eliminating very costly helicopter support. The two drill platforms, when stabilized in the muskeg by adequate ice, will permit up to six holes from each setup to confirm the mineralization’s down dip continuity in order to bring previously inferred resources into the indicated category of confidence. It is expected that the deeper drilling will also allow additional and deeper resources to be inferred. Fuel for the drilling has been cached nearby and may be supplied to the drill rigs and adjacent temporary tent shelters by snowmobiles. The temporary accommodations are provided by Webequie Logistics, an exploration supply enterprise operated by and located in the nearby Webequie First Nation community.

“One on-site exploration crew can manage both drill rigs during the short winter days when helicopter supported operations are prohibitive and very unproductive”, said Moe Lavigne, Vice-President of Exploration for KWG. “This operating plan will be much safer and environmentally benign, as well as being much more productive and less costly. We expect to have our drill core samples recovered, logged and analyzed well within our operating term ending on March 31, 2011”.

The inclusion of chrome sources in Kazakhstan and India, on a US State Department leaked listing of strategic assets, demonstrates the potential global significance of the Ring of Fire chromite discoveries. “Until now, North America has had no commercially viable sources of chromite”,explained KWG President Frank Smeenk. “We have pressed both our Canadian and Ontario governments to heed the strategic significance of these remarkable discoveries, as they represent potential continental self-sufficiency and a Canadian export commodity that is crucial to Canada’s allied trading partners. These leaked intelligence reports have dramatically underscored our message in this regard.”

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Bruce Hodgman,
Communications Director
Direct: 416-646-1374 [email protected]

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