KWG Announces Proposed Investment Acquisition

Press Release

Toronto, Canada, June 24, 2025 – KWG Resources Inc. (CSE: CACR and CACR.A), which carries on business as The Canadian Chrome Company (“CCC”, “KWG” or the “Company”), announces that it proposes to acquire, in two stages to assure conformity with terms of a shareholders’ agreement, up to 50% of the equity of Newcon International Ltd. (“Newcon”), which carries on business as Newcon Optik, in exchange for CCC Multiple-Voting Shares to be issued from treasury at a 15% premium to CCC’s current volume weighted average trading price. A letter of intent was signed today to acquire an initial 25% indirect interest assuming certain underlying options are exercised, and is proposed to be completed following execution of a definitive agreement, satisfying all conditions and receiving all necessary approvals. The estimated value of this first 25% tranche at present market prices, based on a formula agreed upon and to be supported by a fairness opinion to be obtained prior to closing, would be approximately CA$14 million.

The proposed transaction is not intended to constitute or result in a change of business for CCC as CCC intends to continue to focus on its business of mineral exploration involving the acquisition of interests in, and the exploration, evaluation and development of, large scale mineral deposits of chromite and other base metals and minerals including the large chromite deposits it controls in Ontario’s Ring of Fire. It is the objective of the proposed transaction to provide a source of cash-flow to be derived from dividends to be paid by Newcon and, in the longer term should the opportunity present itself, a liquidation of the investment in Newcon. Newcon Optik is a night optical equipment manufacturer and a world leader in laser-based rangefinders which are sold to military and police organizations in many countries. With annual net income ranging between $2.9 million and $6.1 million over the last five years, and excellent growth prospects, including in 2025, it has shown itself to be a profitable business and is expected to provide a steady flow of dividend income to its shareholders. This income will assist CCC with its cash needs rather than relying totally on periodic private placements in these challenging capital markets. The business is also believed to have excellent growth prospects with interesting possibilities for strategic development.

The Company also announces a proposed private placement of Units, each Unit being comprised of four CCC Multiple-Voting Shares and two Warrants (each Warrant exercisable for the purchase of one further such share at any time within 12 months after closing of the first tranche of the private placement or a change of control, whichever first occurs, upon payment of $4.00). Up to 3 million Units priced at
$10.00 each will be offered to Accredited Investors and other investors qualified to purchase such securities on a prospectus-exempt basis.

About The Canadian Chrome Company:
KWG, which carries on business as The Canadian Chrome Company, is an exploration stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals including chromite, base metals and strategic minerals and, where applicable, in the development of transportation and electrification links to access remote areas where these deposits may be located. The Canadian Chrome Company is a registered business style of KWG Resources Inc.

For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@canadachrome.com

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