KWG Resources Inc.: Debuts Diamonds

MONTREAL, CANADA, May 16, 2008 (MARKET WIRE via COMTEX) -- SPQ | news | PowerRating | PR Charts -- The break-up of winter ice conditions in the James Bay Lowlands has temporarily halted the drilling program of the joint venture between KWG Resources Inc (TSX VENTURE: KWG | news | PowerRating | PR Charts ) and Spider Resources Inc (TSX VENTURE: SPQ | news | PowerRating | PR Charts ) on the claims optioned from Freewest Canada Resources Inc (TSX VENTURE: FWR | news | PowerRating | PR Charts ) near the discovery of the Eagle 1 and Eagle 2 nickel deposits of Noront Minerals Inc (TSX VENTURE: NOT). Field programs are expected to resume after the end of May.

In the meantime, KWG's Board of Directors has determined that the roll-over of the Company's diamond exploration property interests to its subsidiary Debuts Diamonds Inc, may be done in exchange for units issued from the subsidiary's treasury priced at $0.20 with each unit comprising one share and one warrant exercisable at $0.30 for one year. The rollover transaction, valued at approximately $9 million, was completed with effect on April 29th, 2008. It is anticipated that Debuts Diamonds will file its non-offering prospectus with regulatory authorities before mid-year.

Shares issued and outstanding: 263,659,821

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Contacts: KWG Resources Inc. Bruce Hodgman Communications Director Direct: 905-582-9744 info@kwgresources.com KWG Resources Inc. Michel Cote Director 514-866-6001 ext. 266 www.kwgresources.com

SOURCE: KWG Resources Inc.

mailto:info@kwgresources.com http://www.kwgresources.com

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