KWG & Diagnos To JV Properties Picked By Software

Montréal, Canada – KWG Resources Inc (TSXV-KWG) recently engaged Diagnos Inc (TSXV-ADK) to re-analyze its McFaulds Lake area data. Diagnos Inc.'s proprietary computer-aided resource-detection software system was used in 2005 in a study of the McFaulds Lake area data on behalf of KWG Resources Inc. The study predicted that a high-priority target for base-metal concentration was indicated at the precise co-ordinates of Noront's discovery, first reported in Stockwatch in September of this year.

As part of the engagement agreement for the new analysis, KWG agreed to vest, in a 50/50 joint venture with Diagnos, any mineral interests acquired outside of KWG’s present claims, if targets were identified in them by Diagnos. The results of the new study were delivered to KWG today. The definition of existing data enabled by the Noront discovery, has significantly refined the results generated from the current analysis.

This strategic partnership comes perfectly in time as DIAGNOS is positioning itself as the leader in the industry of predicting high probability mineralized zones for drilling. Mr. André Larente states: “We knew, in 2005 there was something to look for in McFaulds Lake area. With this refined model, we have an even better understanding of the James Bay Lowlands region and we are looking forward to results of the next drilling on our targets.”

"The focus of the study was to find, from computer analysis of all available data, targets demonstrating similarities to the Noront copper/nickel discovery near McFaulds Lake," said KWG President Frank Smeenk. "We have found the Diagnos self-learning/self-teaching algorithms a very useful advance in rendering and prioritizing the geophysical and geochemical data files. Our upcoming drilling program on targets at the adjacent Freewest Option will be greatly assisted by this analysis and the agreement to joint venture new area acquisitions and discoveries precipitated by the study, obviously speaks for itself."