KFG Resources Ltd., announced today that it had consolidated revenues (unaudited) for the nine-months ended January 31, 2001, of US $3,322,444 compared to US $1,200,216 for the nine- months ended January 31, 2000, resulting in net income, before taxes (unaudited) of US $400,460 for the nine-months ended January 31, 2001, compared to net income of US $303,409 for the same period of 2000. Total assets at January 31, 2001, were US $3,046,729 (unaudited), compared to US $1,401,412 (unaudited) at January 31, 2000. The Company reported a deficit of US $913,637 (unaudited) at January 31, 2001, compared to a deficit of US $965,467 (unaudited) at January 31, 2000. The Company had outstanding 10,292,168 common shares at January 31, 2001.

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."