Mr. Robert A. Kadane, President of KFG Resources Ltd., announced today that KFG Petroleum Corporation, a wholly-owned subsidiary of the Company, has set production casing to 3,785 feet for a completion attempt on the Barton #4 well on the Barton Lease in Each Feliciana Parish, Louisiana. The previously announced drilling of the Barton #3 well resulted in a dry hole. The Company has a 58.75% working interest (44.1% net revenue interest) in the Barton #4 well. Total depth in the wells was 4,000 feet. Electric log and core analysis of the Barton #4 indicated 10 feet of net pay between shale at 3,611 to 3,621 feet. The completion operations will commence in about one week, and if successful, gas sales will start in late May or early June. The Barton lease consists of 8,543 acres.

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."