KWG announces termination of combination agreement

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Symbol on TSX Venture Exchange: KWG

Shares issued and outstanding: 589,549,206

MONTRÉAL, July 2 /CNW/ - KWG Resources Inc. ("KWG") announces that Spider Resources Inc. ("Spider") has terminated the combination agreement among KWG, its wholly-owned subsidiary, 7569076 Canada Inc., and Spider dated as of June 11, 2010 and has paid to KWG a break-fee of $2,300,000 in connection with such termination.

Neither the 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.

For further information: BRUCE HODGMAN, Communications Director, Direct: 416-646-1374, [email protected] Or visit our website: www.kwgresources.com