KFG Resources Ltd. reported today a net loss for the year ended April 30, 2002, of US$1,242,098, compared to net income of US$254,825 for the year ended April 30, 2001. Total revenues for the fiscal year ended April 30, 2002, were US$3,709,698, compared to US$4,438,044 for the preceding year. Total assets at April 30, 2002, were US$1,511,592, compared to US$3,330,524 at April 30, 2001. Mr. Robert A. Kadane reported that the loss for and the decrease in assets resulted primarily from smaller oil and gas income, increased operating expense and the write-downs taken in Louisiana for unsuccessful ventures. The Company reported an accumulated deficit of US$2,149,795 at Apri130, 2002, compared to an accumulated deficit of US$907,697 at April 30, 2001. The Company had outstanding 10,601,501 common shares at April 30, 2002.

KFG Resources Ltd. is a junior independent energy company, which through its wholly-owned subsidiary, KFG Petroleum Corporation, is engaged in the exploration, development and production of oil and gas reserves in east-central Louisiana, southwest Mississippi, and central Kansas. Through its wholly-owned subsidiary, Shamrock Drilling, Inc., the Company is engaged in contract oil and gas drilling operations in the areas of its interests in Louisiana and Mississippi. KFG Petroleum and Shamrock Drilling are both based in Natchez, Mississippi.

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."