KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the six months ended October 31,1999, of US$724,794 compared to US$954,468 for the six months ended October 31, 1998, resulting in net income, before taxes (unaudited) of US$134,546 for the six months ended October 31,1999, compared to a net loss of US$113,384 for the same period of 1998. Total assets at October 31,1999, were US$I,035,663 (unaudited) compared to US$I,097,710 (unaudited) at October 31, 1998. The Company reported a deficit of US$I,106,620 (unaudited) at October 31, 1999, compared to a deficit of US$I,031,460 (unaudited) at October 31,1998. The Company had outstanding 8,002,833 common shares at October 31,1999.

The Company's common shares are listed on the Canadian Venture Exchange, trading symbol "KFG". For additional information, please contact Mr. Robert A. Kadane, President, at (303) 825- 7080.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release."