Robert A. Kadane, President of KFG Resources Ltd. announced today that the Company's subsidiary , KFG Petroleum Corporation, has run casing for a completion attempt in the Woolfolk B #1-32, SW/4 Section 32, T34S-R19W, Comanche County, Kansas. KFG has a 13.5% working interest (10.8% net revenue interest) in this well. As previously announced, this property was obtained in a farmout from Mach Petroleum, and the farmor has reserved the right to convert various overriding royalty interests to a 25% working interest at payout of the well, reducing the interest of KFG. The Company earns 320 acres with this well and has six months to drill an offset to earn an additional 320 acre tract.

KFG is moving in on the second well of the Mach Farmout, the Hackney "B" #1-17, Sec. 17, T34S-R19W , Comanche County, Kansas. Results of this second well will be available in about two weeks. After drilling the Hackney well, a third well, the Kansas University "B" # 1- 32, Sec. 32, T33S-R19W, Comanche County, Kansas, will be drilled, probably in Apri1 2000. The Company has a before payout working interest in these two wells of 13.5% (10.8% net revenue interest) and each well is subject to the same conversion option of 25% as in the Woolfolk "B" #1-32 well.

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."