KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the three months ended July 31, 2000, of US $551,816 compared to US $116,109 for the three months ended July 31, 1999, resulting in net income, before taxes (unaudited) of US $173,876 for the three months ended July 31, 2000 compared to a net income of US $29,133 for the same period of 1999. Total assets at July 31, 2000 were US $2,911,333 (unaudited) compared to US $676,865 (unaudited) at July 31,1999. The Company reported a deficit of US $988,646 (unaudited) at July 31, 2000 compared to a deficit of US $1,195,269 (unaudited) at July 31, 1999. The Company had outstanding 8,002,833 common shares at July 31, 2000.

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."