KFG Resources Ltd. reported today net income for the year ended April 30, 2000, of US $48,644, compared to a net loss of US $293,090 for the year ended April 30, 1999. Total revenues for the fiscal year ended Apri130, 2000, were US $1,647,186, compared to US $1,570,444 for the preceding year. Total assets at Apri1 30, 2000, were US $1,122,753, compared to US $711,528 at April 30, 1999. The Company reported an accumulated deficit of US $1,162,522 at April 30, 2000, compared to an accumulated deficit of US $1,211 ,166 at April 30, 1999. The Company had outstanding 8,002,833 common shares at April 30, 2000.

KFG Resources Ltd. is a junior independent energy company, which, through its wholly- owned subsidiary , KFG Petroleum Corporation, is engaged in the exploration, development and production of oil and gas reserves in east-central Louisiana, southwest Mississippi and central Kansas. Through its wholly-owned subsidiary, Shamrock Drilling, Inc., the Company is engaged in contract oil and gas drilling operations in the areas of its interest in Louisiana and Mississippi. KFG Petroleum and Shamrock Drilling are both based in Natchez, Mississippi.

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."