KWG Resources and Bold Ventures Agree on Black Horse

THUNDER BAY – BUSINESS – KWG Resources Inc. (“KWG”) (CSE:KWG)(TSX VENTURE:KWG)(FRANKFURT:KW6) has reached agreement with Bold Ventures Inc. (“Bold “) (TSXV: BOL) to satisfy its obligations to make the third payment of $700,000 required under Bold’s option agreement with Fancamp Exploration Ltd. (“Fancamp”) (TSXV: FNC) on the Black Horse claims (the “Option Agreement”), by delivery to Fancamp of 35 million common shares of KWG (valued at $0.02 per common share) (the “Share Issuance “) on or before March 19, 2015. In consideration of the foregoing and a payment of $5,000 by KWG, Bold has extended the time by which KWG must complete the exploration expenditures required by the Option Agreement to September 30, 2015.

The Canadian Securities Exchange (the “CSE”) has agreed to waive its minimum issue price requirements with respect to the Share Issuance; however, the TSX Venture Exchange (the “TSXV “) was unable to grant a similar waiver. Consequently, in order to proceed with the Share Issuance, KWG will seek to delist its common shares from the TSXV subject to meeting any voluntary delisting requirements (including board approval).
KWG has the right to earn an 80% interest in Bold’s interest in the chromite resources comprising the Black Horse claims, and a 20% interest in their non-chromite resources, by making the payments and exploration expenditures required under the Option Agreement. KWG has incurred $5.8 million of a total of $8 million of exploration expenditures that Bold is required to complete by March 31, 2016 in order for Bold to earn a 50% joint venture interest in the claims, with operatorship of all subsequent programs.