Retractions - Hummmmmmmmmmmmmmmm!!!!!!!!!!!!! The company has filed a number of technical reports in accordance with National Instrument 43-101. They include technical reports for the Big Daddy deposit dated May 27, 2011, and Nov. 12, 2014. The May, 2011, technical report is a preliminary economic assessment based on the deposit's estimated resources described therein. The November, 2014, technical report is an update (and increase) in respect of the deposit's estimated resources; however, it is not an update of the economic assessment for those resources and does not include information necessary to support disclosure of a preliminary economic assessment in respect of the estimated resources described in the November, 2014, technical report. The May, 2011, technical report is no longer current and should not be relied on.
At the request of staff following their review of KWG's continuous disclosure record, KWG has determined to retract the economic projections referred to on the company's website based on the May 27, 2011, technical report that had been completed in 2011 in accordance with NI 43-101 and filed on SEDAR at that time. Prior to January, 2018, the company had referred to various projects in the Ring of Fire and to the Ring of Fire as a whole and, in respect thereof, had confirmed to staff that the company would make no further references in its public disclosure materials to estimates of the value of mineral resources until the completion and publication of applicable preliminary economic assessments, prefeasibility studies or feasibility studies to support such estimates (please see the company's news release dated Jan. 9, 2018).
At the request of staff, the company has also removed references and links to certain websites, papers, studies, analysts' reports and newspaper articles, including: (i) a paper presented by Barnes, Muinonen and Lavigne to the CIM Metallurgical Society; (ii) the rail-versus-road tradeoff study dated Feb. 11, 2013, by Tetra Tech; (iii) the Pope & Company analyst report (2013); and (iv) the article from the Greenstone Times-Star dated January, 2010, as those materials should not be relied on. In respect of the rail-versus-road tradeoff study dated Feb. 11, 2013, by Tetra Tech, the company retracts any parts thereof that may be interpreted as implying economic feasibility and advises that such study should not be relied on as a feasibility study within the meaning of NI 43-101.
In situ value
On the company's website were some statements from a newspaper article and some links to websites of newspapers and other companies that referred to in situ or gross metal values. In situ and gross metal values are governed by restricted disclosure provisions in Section 2.3 of NI 43-101. At the request of staff following their review of KWG's continuous disclosure record, KWG has determined to retract certain statements from that newspaper article and to remove references and links to certain websites, as those materials do not appear to be based on an acceptable method of valuation, omit material information, and do not appear to have an acceptable relationship to economic viability, value or potential return to investors, and, accordingly, such materials, including a Mineralfields monthly newsletter from May, 2010, and a Middelkoop analyst report from Feb. 9, 2009, should not be relied on. Similarly, a statement by the chief operating officer of the company's wholly owned subsidiary, Canada Chrome Corp. (CCC), in a newspaper several months ago referring to an estimated value of the minerals in the Ring of Fire has been retracted and should not be relied on.
Exploration target
On the company's website, in respect of its Black Horse chromite deposit, there was a statement regarding tonnage of deposits that the company regarded as a forward-looking statement regarding a potential reconstruction of the deposits and their resources. At the request of staff following their review of KWG's continuous disclosure record, KWG has determined to retract that statement. That tonnage was not a mineral resource within the meaning of Canadian Institute of Mining, Metallurgy and Petroleum definitions and was not described as an exploration target with a range of tonnage and grade with required cautionary language in accordance with NI 43-101. The company has also determined to remove references to the reconstruction potential; that statement should not be relied on.
Rail transportation corridor
On the website of Canada Chrome was a statement regarding the staking of that route by the company and the reasons therefor. At the request of staff following their review of KWG's continuous disclosure record, KWG has determined to retract that statement and remove from the CCC website references to the reasons for staking those claims; that statement should not be relied on.
Canada Chrome website
On the CCC website, there were references to some of the matters being retracted and removed from the company's website. All such matters that appeared on the CCC website are similarly being retracted and have been removed from the CCC website.
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