Robert A. Kadane, President of KFG Resources Ltd. announced today that KFG has engaged National Media Associates of La Canada, California as media consultants. Under the terms of the engagement, National Media Associates will be paid a fee of $2,500 per month plus expenses for a period of one year.

As media consultants, National Media Associates will provide the Company with financial relations, media relations and public marketing development services.

National Media Associates and its principal, Mr. George Duggan, do not have any direct or indirect interest in the Company or any right to acquire such an interest.

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."