KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the nine-months ended January 31, 2002, of US $3,333,274, compared to US $3,322,444 for the nine- months ended January 31, 2001, resulting in a loss before taxes (unaudited) of US $122,168 for the nine-months ended January 31, 2002, compared to net income of US $400,460 for the same period of 2001. Total assets at January 31, 2002, were US $2,800,707 (unaudited), compared to US $3,330,524 (audited) at April 30, 2001. The Company reported a deficit of US $1,055,780 (unaudited) at January 31, 2002, compared to a deficit of US $907,697 (audited) at Apri1 30, 2001. The Company had outstanding 10,601,501 common shares at January 31, 2002.

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."