Mr. Robert A. Kadane, President of KFG Resources Ltd., announced today that KFG Petroleum Corporation, a wholly-owned subsidiary of the Company, has run production casing to 5,400 feet in the Webster A #1 well, C NE NE, Section 30, T34S-R19W, Comanche County, Kansas. Several zones of interest will be production tested, including the Ft. Scott and Pawnee zones at 5,100 feet. KFG has a 19% working interest (15.4375% net interest) in this well and the surrounding 1,920 acres. This area is also included in a 6.3 square mile 3D seismic shoot which should begin in the near future.

The Company's common shares are listed on the Canadian Venture Exchange, Vancouver, B.C., 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."