Mr. Robert A. Kadane, President of KFG Resources Ltd., reported today that certain statements made in the National Resource Investor, Fax Alert #9, Volume 2000, regarding the drilling on the Barton Lease, East Feliciana Parish, Louisiana, do not conform with the disclosure policies of the Canadian Venture Exchange and other securities regulators. KFG Resources Ltd. therefore wishes to retract estimates of natural gas reserve potential and estimates of potential revenues for this project as stated in the Natural Resource Investor.

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."