KFG Resources Ltd. reported today net income for the year ended April 30, 2001, of US $254,825, compared to US $48,644 for the year ended April 30, 2000. Total revenues for the fiscal year ended April 30, 2001, were US $4,438,044, compared to US $1,647,186 for the preceding year. Total assets at Apri130, 2001, were US $3,330,524, compared to US $1,122,753 at Apri130, 2000. The Company reported an accumulated deficit of US $907,697 at April 30, 2001, compared to an accumulated deficit of US $1,152,522 at April 30, 2000. The Company had outstanding 10,342,168 common shares at Apri130, 2001.

KFG Resources Ltd. is a junior independent energy company, which through its wholly- owned subsidiary , KFG Petroleum Colporation, is engaged in the exploration, development and production of oil and gas reserves in east-central Louisiana, southwest Mississippi, and central Kansas. Through its wholly-owned subsidiary, Shamrock Drilling, Inc., the Company is engaged in contract oil and gas drilling operations in the areas of its interests in Louisiana and Mississippi.

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."