Mr. Frank Smeenk reports

KWG AMENDS OPTION FOR EQUITY CONVERSION BY CCC

KWG Resources Inc., which carries on business as The Canadian Chrome Company, has amended its agreement of Jan. 18, 2021, with Tony Marquis, relating to KWG's wholly owned subsidiary, Canada Chrome Corp., and the potential conversion of CCC's equity into multiple voting shares of KWG, as follows:

• Mr. Marquis will continue as the sole director of CCC at the pleasure of KWG.
• Mr. Marquis's right to tender unpaid compensation to CCC in exchange for up to 244,400 CCC shares will be extended to the following expiry dates: (i) in respect of $800,000 of compensation earned by Mr. Marquis in 2021, the expiry date will be the earliest: of (A) Dec. 31, 2024; (B) a change of control of CCC; or (C) a change of control of KWG; and (ii) in respect of $880,000 of compensation earned by Mr. Marquis in 2022 and January, 2023, the expiry date will be the earliest of: (A) Dec. 31, 2025; (B) a change of control of CCC; or (C) a change of control of KWG.
• In the event that Mr. Marquis tenders unpaid compensation to CCC and receives CCC shares in exchange therefor: (i) Mr. Marquis shall have the right, exercisable on or before the applicable expiry date for acquiring such CCC shares, to tender such CCC shares to KWG and receive 6.874 multiple voting shares at a deemed price of $1.99 per multiple voting share in exchange for each CCC share tendered by Mr. Marquis; and (ii) KWG will have the right to tender 6.874 multiple voting shares to Mr. Marquis at a deemed price of $1.99 per multiple voting share in exchange for each CCC share held by Mr. Marquis. A total of 1.68 million multiple voting shares are issuable pursuant to the foregoing tender rights.

"We're very pleased that Tony will continue in his advisory role for KWG now that development alternatives for the Ring of Fire are being considered," said chief executive officer Frank Smeenk. "To have a premier railroad man in our group is crucial, when the long-term economics of moving a bulk commodity from Canada's north to markets at a great distance south is being assessed. We know he will continue to make a significant contribution to that process for this frontier project from his wealth of experience in his frontier development industry."

About KWG Resources Inc.

KWG, which carries on business as The Canadian Chrome Company, is an exploration-stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals, including chromite, base metals and strategic minerals, and, where applicable, in the development of transportation links to access remote areas where these deposits may be located. KWG is the owner of 100 per cent of the Black Horse chromite project (formerly part of Fancamp's Koper Lake-McFaulds properties), in which Bold Ventures Inc. is carried through exploration of the former Fancamp claims for 10 per cent of the chromite project. KWG also holds other area interests, including a 100-per-cent interest in the Hornby claims, a 15-per-cent vested interest in the McFaulds copper/zinc project and a vested 30-per-cent interest in the Big Daddy chromite project. KWG also owns 100 per cent of Canada Chrome Corp., which staked mining claims between Aroland, Ont. (near Nakina), and the Ring of Fire. The subsidiary has conducted a surveying and soil testing program to assess the prospects for the engineering and construction of a railway along that route between the Ring of Fire and Aroland, Ont., covering the claims staked by the subsidiary. The subsidiary engaged Cormorant Utilities and Rail-Veyor Technologies for engineering proposals for the construction of a transportation and utility corridor within the route, and has received those proposals. KWG has also acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary Muketi Metallurgical LP has acquired two chromite-refining patents in Canada and one in each of the United States, South Africa and Kazakhstan, and is prosecuting an application in Turkey.

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