DDI Debut Diamonds Inc

KWG Resources Inc. (TSX VENTURE:KWG) provides the following update on the status
of the upcoming distribution of the shares of Debut Diamonds Inc. (CNSX:DDI) and
its current diamond exploration programs. 


CRA Advance Income Tax Ruling Received 

KWG has received an Advance Income Tax Ruling from the Canada Revenue Agency
which confirms that KWG's distribution to its shareholders of all of its shares
of DDI as a reduction of the issued and paid-up capital account of KWG's common
shares will constitute a reorganization that will cause KWG shareholders holding
KWG common shares as capital property ("Shareholders") to be considered to
receive a taxable dividend on the distribution only to the extent that the fair
market value of the DDI shares distributed to the Shareholders exceeds the
reduction of the issued and paid-up capital account of KWG's common shares.
Since, in the present circumstances, KWG intends to reduce the issued and
paid-up capital account of its common shares by an amount that is equal to the
fair market value of the DDI shares distributed to the Shareholders, it is
expected that no taxable dividend will be received by the Shareholders on the
distribution. KWG shareholders of record on December 15, 2011 will be entitled
to receive 6 shares of DDI for each 100 shares of KWG. It is expected that each
DDI share will be valued at approximately $0.30 for the purposes of the
distribution. The fair market value of the DDI shares received by a particular
Shareholder will reduce the adjusted cost base of the Shareholder's KWG common
shares. To the extent that the fair market value of the DDI shares received by a
particular Shareholder exceeds the adjusted cost base of the KWG common shares
to such Shareholder, the Shareholder will be considered to have realized a
capital gain. The DDI shares will be posted for trading by the Canadian National
Stock Exchange on December 13, 2011 when the KWG shares will commence trading on
an ex-dividend basis.


New Airborne Geophysical Survey in MacFadyen and Victor Mine Area 

Debut has completed the data acquisition phase of its new high-sensitivity and
high-resolution airborne magnetic survey of the MacFadyen property, adjacent to
De Beers' Victor Mine. A total of 15,030 line kilometers were flown by
helicopter at 75 meter spacing, in two large regional grids. The data is now
being analyzed by Scott Hogg & Associates Ltd. for the development of
prioritized targets for follow-up exploration. The flying conditions were ideal
and the data thus collected is of superb quality and resolution. Part of the
target selection analysis will include overlaying and cross-referencing to
previously acquired data sets which now include many other drill-defined
diamondiferous kimberlites in the area.


Assessment filing confirmed on Railroad corridor claims 

MNDM recently confirmed that it has accepted for filing $7.5 million of
geotechnical data as assessment work completed on the claims constituting the
transportation corridor from Exton to the Ring of Fire. The work distribution
secures tenure in all of the claims, most into 2016.


Corridor till sampling underway in JV between Debut and KWG 

The geotechnical soil profile samples recovered at 500 meter intervals along the
entire length of the railroad corridor claims constitute an unprecedented
opportunity for the search for mineral deposits along this transect of the
Canadian Shield. To facilitate the analysis, KWG and DDI have entered a joint
venture under which DDI will conduct heavy minerals separation and analysis of
the entire suite of samples. Diamond discoveries from this work, within the
claims plus a 30 kilometer area of interest in all directions, will be the
property of DDI; non-diamond mineral discoveries in that area will be the
property of KWG. The processing of samples is underway and heavy minerals
representing a variety of mineral deposit types have been identified. The
Ontario Geological Survey is collaborating in examining the soil samples in
order to construct from them a detailed profile and understanding of the glacial
till depositions. The processing of an anticipated total of 500 samples, in this
program, is expected to be completed during the second quarter of 2012.


About KWG: KWG has a 28% interest in the Big Daddy chromite deposit and is
presently earning an additional 2% interest in it under an option agreement to
create a joint venture with Cliffs Natural Resources on April 1, 2012. KWG also
owns 100% of Canada Chrome Corporation which has staked claims and conducted a
surveying and soil testing program for the engineering and construction of a
railroad to the Ring of Fire from Exton, Ontario where the Trans Canada line of
the Canadian National Railway can be connected.



Shares issued and outstanding: 636,878,941

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