Mr. Robert A. Kadane, President of KFG Resources Ltd., reported today that the Company's wholly-owned subsidiary, KFG Petroleum Corporation, has successfully recompleted and returned to production two wells: the Christopher A-1, Comanche County, Kansas, and the Smith 1-11A, Fayette Field, Jefferson County, Missisippi.

The Christopher A-1 has been recompleted in the Mississippi Detridal zone at 5,246 feet. After a 50,000 pound sand frac, the well was completed flowing 400 Mcf/day on a 24/64 inch choke with 130 pound FTP into the sales line. The Company has a 18.5% working interest (14.8% net revenue interest) in the well and 320 acre gas unit.

The Smith 1-11A has been recompleted into the sales line, in the First Wilcox gas sand at 3,598 - 3,610 feet, with 700 pound FTP on a 6/64 inch choke and 150,000 cubic feet of gas per day. The Company owns a 43.75% working interest (32.8% net revenue interest) in the well and surrounding 4,000 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."