KFG Resources Ltd. reported today that the Company's subsidiary, KFG Petroleum Corporation, had closed on the purchase of additional interests in its producing and leasehold properties in Commanche County , Kansas. As previously announced, 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,OOO and 231,333 shares of the Company's common shares. There were no bonuses, finders' fees or commissions paid in connection with the purchase. Mr. Robert K. Kadane, President of the Company, noted that the common shares issued were subject to a hold period, expiring September 10, 2002, except as permitted by the Securities Act (British Columbia) and rules made thereunder.

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."