KWG and China Railway FSDI Ink Strategic Cooperation Agreement - FSDI to Complete Conditional Bankable Feasibility Study

TORONTO, ONTARIO--(Marketwired - Aug. 22, 2016) - KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) ("KWG") announces that it has entered a Framework Strategic Cooperation Agreement with China Railway First Survey & Design Institute Group Co., Ltd. ("FSDI"). Pursuant to the Strategic Cooperation Agreement, the parties have also executed a Conditional Bankable Feasibility Study Consultation Service Agreement ("BFSCS"). Under terms of the BFSCS the parties have agreed on the deliverables and timetable for FSDI to complete a Conditional Bankable Feasibility Study on a railroad from the mineral properties in Ontario's Ring of Fire to a junction with the CN Railroad at Exton, Ontario.

The Study will include:

• Traffic volume estimates
• Corridor Alignment identification
• Transportation/Operating plan
• Geological analysis
• Track design parameters and recommended design
• Subgrade design parameters and recommended design
• Bridge and culvert design parameters and recommended design
• Yard and siding design parameters and recommended design
• Analytical study of land use evaluation
• Rolling stock evaluation
• Water supply and drainage design
• Telecommunication functional design and specification
• Signalling system functional design and specification
• Electrical power supply design and specification
• Building functional specification and design
• Construction schedule
• Detailed CAPEX
• Financial and economic analysis and financing strategy
• Environmental Impact assessment and mitigation plan

Plans, Maps, Profiles and Sections to be included also:

• Recommended Corridors and Preferred Alignment Plan
• Recommended Corridors and Preferred Alignment Profile
• Geographical Location Map of Preferred Corridor
• Locomotive Routing Diagram
• Geological Map of Project Area
• Detailed Geological Map
• Geologic Profile of Preferred Alignment
• Key Bridge Location Plan
• Key Bridge Site Plan
• Comparison Drawing of Bridge Designs
• Geologic Profile for Key Bridge Sites
• Junction, Loading and Unloading Yard Layouts
• Communication Network Map
• General Layout of Signalling Equipment
• Sketch of Existing Signalling Equipment at Junction and Rebuilding Plan
• Power Supply Diagram for entire project
• Remote Controlled Devices Electrical System Layout
• Mechanical and Electrical Equipment Monitoring System Layout
• Linear Construction Schedule Diagram

The BFSCS contemplates that the Conditional Bankable Feasibility Study will be completed by the end of 2016.