KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the six months ended October 31, 2001, of US$2,493,163, compared to US$2,088,880 for the six months ended October 31,2000, resulting in net income before taxes (unaudited) of US$20,349 for the six months ended October 31,2001, compared to net income of US$324,435 for the same period of 2000. Total assets at October 31, 2001, were US$3,326,505 (unaudited), compared to US$3,330,524 (audited) at April 30, 2001. The Company reported a deficit of $US892,209 (unaudited) at October 31, 2001, compared to a deficit of US$907,697 (audited) at April 30, 2001. The Company had outstanding 10,601,501 common shares at October 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."