Mr. Robert A. Kadane, President of KFG Resources Ltd., announced today that KFG Petroleum Corporation, a wholly-owned subsidiary of the Company, has completed its Barton #4 well on the Barton Lease in East Feliciana Parish, Louisiana. The well is producing and selling 171,000 cubic feet of natural gas per day through a 7/64^th choke, flowing tubing pressure 960 pounds, with a BTU content of 1,000. The Company has a 58.75% working interest (44.1% net revenue interest) in the Barton #4 well. The Barton #4 has 10 feet of net gas pay between shale at 3,611 to 3,621 feet. 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."