KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the six months ended October 31, 2000, of US$2,088,880 compared to US$724,794 for the six months ended October 31, 1999, resulting in net income, before taxes (unaudited), of US$324,435 for the six months ended October 31, 2000, compared to net income of US$134,546 for the same period of 1999. Total assets at October 31,2000 were US$3,229,657 (unaudited), compared to US$1,035,663 (unaudited) at October 31, 1999. The Company reported a deficit of US$839,662 (unaudited) at October 31,2000, compared to a deficit of US$1,106,620 (unaudited) at October 31, 1999. The Company had outstanding 10,264,168 common shares at October 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."