Robert A. Kadane, President of KFG Resources Ltd. announced today that the Company's wholly-owned subsidiary, KFG Petroleum Corporation, has entered into an agreement with Sien Energy, San Antonio, Texas, granting KFG a 60-day option for a consideration of $50,000 to purchase a 75% interest in 78 square miles of 3-D seismic as well as a 75% working interest in an 8,468-acre lease (the Barton Lease), all in East Feliciana Parish, Louisiana. If the option is exercised, $390,025US is due on or before June 17, 2000. This area of East Feliciana Parish is known for its shallow Miocene/Frio gas reserves down to 5000.

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."