KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the three months ended July 31, 2002, of US $585,952, compared to US $836,964 for the three months ended July, 31, 2001, resulting in net income (unaudited) of US $25,757 for the three months ended July 31, 2002, compared to net income of US $299,818 for the same period of 2001. Total assets at July 31, 2002, were US $1,721,526 (unaudited), compared to US $1,511,592 (audited) at April 30, 2002. The Company reported a deficit of US $2,124,038 (unaudited) at July 31, 2002, compared to a deficit of US $2,149,795 (audited) at April 30, 2002. The Company had outstanding 10,601,501 common shares at July 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 TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release."