KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the three-months ended July 31, 2001, of US $836,964 compared to US $551,816 for the three-months ended July 31, 2000, resulting in net income, before taxes (unaudited) of US $299,818 for the three-months ended July 31, 2001, compared to net income of US $179,929 for the same period of 2000. Total assets at July 31, 2001, were US $3,455,079 (unaudited), compared to US $3,330,524 (audited) at Apri130, 2001. The Company reported a deficit of US $607,879 (unaudited) at July 31, 2001, compared to a deficit of US $907,697 (audited) at April 30, 2001. The Company had outstanding 10,342, 168 common shares at July 31, 2001.

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."