China Railway First Survey & Design Institute Group Co., Ltd. to Negotiate Terms for KWG Feasibility Study

TORONTO, ONTARIO--(Marketwired - Dec. 29, 2015) - KWG Resources Inc. (CSE:KWG) (FRANKFURT:KW6) ("KWG") has been advised by China Railway First Survey & Design Institute Group Co., Ltd. ("FSDI") through KWG's agent Golden Share Mining Corporation (TSX VENTURE:GSH) ("GSH"), that an initial analysis by FSDI of KWG's data has been completed. FSDI has indicated that the quality and extent of the data is adequate for FSDI to undertake a Feasibility Study on behalf of the parties. A meeting to establish terms of reference has been mutually scheduled by KWG and FSDI in January 2016.

Stock Option Grants:

Following the expiry of 11 million stock option awards on December 21, the Board of Directors of KWG has granted new options to purchase 13.5 million shares, effective December 30, 2015, under its Incentive Stock Option Plan. The options are exercisable for 5 years at $0.05 which is the minimum price permitted under the Company's listing agreement with the Canadian Securities Exchange. Options to purchase 3 million shares were granted to four Directors, options to purchase 4 million shares were granted to a Director and Officer, options to purchase 3.5 million shares were granted to two Officers, options to purchase 2 million shares were granted to two employees, and options to purchase 1 million shares were granted to two consultants.

Black Horse 43-101 amended:

At the request of the British Columbia Securities Commission ("BCSC"), KWG will file an amended version of the report "National Instrument 43-101 Technical Report, Koper Lake Project Chromite Deposit, McFauld's Lake Area, Ontario, Canada, Porcupine Mining Division, NTS 43D16, Updated Mineral Resource Estimation Technical Report, UTM: Zone 16, 548460m E, 5842511m N, NAD83" which is now dated December 15, 2015. The report was not previously addressed to the property's optionor Fancamp Exploration Ltd. as well as the optionee KWG; this has been corrected. Also, on page 58 the description of the limits of the mineral envelope had incorrect distances to the nearest holes; these have now been corrected. Further, on page 59 a new section titled "Determination of Cut-off Grade" has been added. A version extracted from another report done by the authour for nearby chromite deposits, and vetted by the Ontario Securities Commission, was initially provided but BCSC requested more information. It should be noted that the original facts supporting the use of the cut-off chosen still remain. Section 23 (Other Relevant Information) has been amended by removing all mention of the sample analysis program done using a Niton portable X-ray analyser.