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Fancamp and KWG Resources Announce Closing of the Sale of Fancamp’s Interests in Koper Lake-McFaulds Mining Claims to KWG

Press Release

Vancouver, BC and Toronto, ON – September 1, 2022 – Fancamp Exploration Ltd. (“Fancamp”) (TSXV: FNC) and KWG Resources Inc. (“KWG”) (CSE: KWG, KWG.A; FSE: KW61) are pleased to announce that, further to their joint press releases dated July 21, 2022 and August 10, 2022, they have closed the sale (the “Transaction”) by Fancamp to KWG of all of the right, title and interests beneficially owned by Fancamp in and to the “Koper Lake-McFaulds” mineral properties, comprised of four (4) “legacy” mining claims (the “Mining Claims”) that cover approximately four (4) square kilometers, overlying the axis of the Ring of Fire intrusion, host to all the known chromite deposits  located within the “Ring of Fire” in the Province of Ontario.

The consideration paid by KWG to Fancamp for the purchase of the Mining Claims and the one-time payment by Fancamp to KWG of C$1,500,000 consisted of: (a) the issuance by KWG to Fancamp of a secured convertible promissory note in the principal amount of C$34.5 million; (b) the issuance by KWG to Fancamp of warrants to purchase a total of 4,044,453 multiple voting shares of KWG; and (c) the grant by KWG to Fancamp of a 2.0% net smelter return royalty (one-quarter of which may be purchased by KWG at any time for C$5 million and the next one-quarter of which is subject to a right of first refusal in favour of KWG) on any direct or indirect interest in the Mining Claims held by KWG on and after the closing date.

Additional information with respect to the Transaction can be found in the joint press release of Fancamp and KWG dated July 21, 2022. Additional information with respect to the Mining Claims can be found under KWG’s SEDAR profile at www.sedar.com.

For further information, please contact:

on behalf of Fancamp:

Rajesh Sharma President and Chief
Executive Officer +1 (604) 434 8829
[email protected]

Debra Chapman Chief Financial
Officer +1 (604) 434 8829
[email protected]

Tara Asfour Director of Investor
Relations +1 (604) 434-8829
[email protected]

on behalf of KWG:
Bruce Hodgman
Vice-President
416-642-3575
[email protected]

IBF4

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