Robert A Kadane, President of KFG Resources Ltd. announced today that the Company's subsidiary, KFG Petroleum Corporation, has completed the previously announced Hackney "B" #1-17 well located in the SW/4 of Section 17, T34S-R19W, Comanche County, Kansas. KFG has a 13.5% working interest (11.2% net revenue interest) in the well. As previously announced, this property was obtained in a farmout form Mach Petroleum, and the farmor has reserved the right to convert various overridingly 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.

The Hackney "B" #1-17 has been completed in the Pawnee zone for an absolute open flow potential of 2,000 MCF and was turned into the sales line on May 18, 2000. The well has SITP of 1,690# and was tested at a stabilized rate in excess of 1,000 MCF/D. Current plans are to produce the well at 500 MCF/D plus 40-50 barrels of oil per day.

After completing the Hackney well, a completion attempt will be made on the previously announced Kansas University tract. Casing has been set below 6,100 feet in the Christopher "A" #1, SW/4 of Section 32, T33S-R18W, Comanche County, Kansas. The Company has a 13.5% working interest in this well (10.97% net revenue interest) and there is no conversion option at payout.

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."