Attention Business Editors:

KWG Resources Inc. - Grant of options

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    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 269,659,821
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    MONTREAL, Oct. 31 /CNW/ - The Board of directors has granted 400,000
stock options to directors of the Company. The options are exercisable at
$0.10 over a period of five years. The options are subject to a hold period of
four months and they vest over 18 months as follows: 25% at the date of the
grant and thereafter, 12.5% per quarter.

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    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
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For further information: BRUCE HODGMAN, Communications Director, Direct:
(416) 646-1374, [email protected]; MICHEL COTE, Director, (514) 866-6001
ext. 266, Or visit our website: www.kwgresources.com