14 RAILROAD STUDY LIABILITY On August 22, 2016, the Company entered into a Conditional Bankable Feasibility Study Consultation Service Agreement (“BFSCS”) with China Railway First Survey & Design Institute Group., Ltd. (“FSDI”).  Under the BFSCS, FSDI is to prepare a study on the economics of building and operating a railroad from the mineral properties in Ontario’s Ring of Fire to a junction with the CN railroad at Exton, Ontario, conditional on the development of mining projects in the Ring of Fire.  The BFSCS calls for KWG to pay FSDI a total of $1,385,000 in United States dollars (“USD”).  To date, KWG has paid $50,000 USD of this amount.  The original agreement stated that if there remains any unpaid amounts owed by KWG to FSDI on or after November 30, 2017, FSDI shall gain all ownership rights to the deliverable documents and information related thereto and the remaining debt will be extinguished.  The deadline has passed without any payment being made, therefore the ownership rights have reverted to FSDI.  As a result, the accrual has been reversed.