Robert A. Kadane, President of KFG Resources Ltd. announced today that the Company's subsidiary, KFG Petroleum Corporation, has completed and put on production, two previously announced wells, and is in the process of completing a third well, in Comanche County , Kansas.

The Bergner-Acres Unit #1 Well, SW/4 Sec. 16, T32N-R18W, went on production from the Pawnee zone on July 3,2000, producing 650 MCF/D of 1150 BTU natural gas with PTP of 300#. KFG's net revenue in the well is 8.87%.

The Christopher A #1 Well, SW/4 Sec. 32, T33S-R18W, started gas sales on July 8, 2000, producing 540 MCF/D of 1160 BTU gas with FTP 740# from the Viola formation. KFG's net revenue interest in tlle well is 10.97%.

The Cronin A #1 Well, also in Section 32, has successfully tested oil and gas out of the Altamont and Pawnee formations and production casing will be run on the well for a completion attempt. KFG has a 10.625% working interest in the well and the farmor has the right to convert to a 30% working interest at payout This well is 3,170 feet from the Company's Lousch D#l well, opening up room for further development

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."