Toronto, Ontario--(Newsfile Corp. - September 28, 2018) - KWG Resources Inc. (CSE: KWG.A) (CSE: KWG) (OTC: KWGBF) (FSE: KW6) ("KWG") has advised the Canadian Securities Exchange that it will extend for a further 120 days from today, the time within which existing options to acquire additional Convertible Debentures of the Corporation may be exercised.

As previously announced the Company received CSE approval for a private placement to a maximum of $3,000,000 of debentures convertible at the option of KWG into units with a deemed value of $21 per unit (each a "Unit") under which each subscriber will receive an option (the "Option") to acquire an equal amount of additional debentures at any time within 120 days from closing. Each Unit will be comprised of four KWG.A multiple voting shares and four multiple voting share purchase warrants, with each such warrant enabling its holder to acquire one further KWG.A multiple voting share from treasury upon payment of $7.50 at any time within two years from the date of the debenture's issuance. The debentures will bear interest at a rate of 12% per annum, accruing daily, compounding annually and payable at the earlier of maturity, redemption or conversion, in KWG.A multiple voting shares from treasury at their volume-weighted average price ("VWAP") for the ten trading days prior to payment. The debentures secure repayment of the principal, plus interest earned thereon to the date of payment, plus a premium of 20% of the original principal amount payable immediately following issuance of the debenture by the issuance of Units with a deemed value of $21 per Unit. At any time and from time to time, KWG will have the right to redeem the debenture in whole or in part by payment in cash, or convert the debentures in whole or in part into Units.

An aggregate of $2,576,908.25 of debentures were issued on December 15, 2017 and the balance remain to be issued. The Company has advised CSE that it now anticipates issuing up to $4.5 million of the debentures and options, in total, subject to all requisite approvals being first received.