KWG Makes International Patent Claim; Steel and Chrome Giants Interested in Offtake and Marketing Alliance, Engineering and Construction

TORONTO, ONTARIO--(Marketwired - Sep 22, 2014) - KWG Resources Inc. (TSX VENTURE:KWG)(FRANKFURT:KW6) has filed an international patent application under the Patent Cooperation Treaty. This will provide KWG with the right to file patent applications in over 140 countries around the world in order to secure its rights to its new method of refining chromite ore into ferrochrome by means of natural gas. The disclosed subject matter of this PCT application is supported by results of ongoing metallurgical tests being conducted on behalf of KWG by XPS Consulting and Testwork Services.

KWG has received expressions of interest in creating two strategic alliances:

• A global steel company has proposed to provide project engineering and construction expertise and to market intermediate products for primary stainless steel casting. In this regard, KWG is studying the opportunity to build a facility to produce custom-made stainless steel billets for global export to stainless steel makers for remelting and dilution with iron.

• A large ferrochrome producer has proposed a strategic marketing alliance for the global charge chrome market.

The parties are mutually exploring terms for offtake agreements for such products that could support future project financing facilities. These plans are being developed based on the commercial potential of the new method of refining chromite ore into ferrochrome by means of natural gas disclosed in the patent application. The customized cast billets contemplated for production at the proposed casting plant could become an export vehicle for the combined content of Canadian chromium, nickel and iron and the hydro-electricity and natural gas consumed to produce them.

About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG has also acquired patent interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

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.

Cautionary Note Regarding Forward‐Looking Statements: This Press Release contains or refers to "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". All information, other than information regarding historical fact that addresses activities, events or developments that KWG believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this Press Release is subject to a number of risks and uncertainties that may cause the actual results of KWG to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, KWG. Risks and uncertainties may include: the general risks associated with the mining industry, adverse changes in commodity prices, currency and interest rate fluctuations, increased competition and general economic and market factors, risks associated with exporting custom steel billets, the risk that the new method of refining chromite ore into ferrochrome by means of natural gas that is the subject of the PCT application does not prove efficient or economical, the scope, likelihood of grant, enforceability, infringement, freedom to operate, or commercial value relating to the patent applications to be used to support the commercialization of the new method of refining chromite ore into ferrochrome by means of natural gas is worse than expected, the grant or approval of a patent on any invention disclosed in the patent applications relating to the commercialization of the new method of refining chromite ore into ferrochrome by means of natural gas is limited or does not materialize, completion of the off-take agreements does not materialize, completion of the strategic alliances does not materialize, the results of any feasibility studies, design, engineering or construction of the proposed project are worse than expected, or assumptions underlying the forward looking statements prove incorrect. We do not intend and do not assume any obligation to update these forward‐looking statements, except as required by law. Readers are cautioned not to put undue reliance on such forward‐looking statements.

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