KFG Resources Ltd. reported today that the Company's subsidiay, KFG Petroleum Corporation, has increased its interests in its producing and leasehold properties in Commanche County, Kansas, by the purchase of additional interests in these properties. The working and leasehold interests acquired range from 2.49% to 5.71 %, and were purchased from unrelated parties in arms' length negotiations for an aggregate consideration of US$45,000 and 231,333 shares of the Company's common shares. Mr. Robert A. Kadane, president of the Company, stated that the transactions were subject to approval by the Canadian Venture Exchange.

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."