Contact: Robert A. Kadane, President (303) 825- 7080

"Wednesday, February 26,2003

.....amended Schedules B and C to the Quarterly and Year End Reports.....

KFG Resources Ltd. announced today that it had filed on SEDAR amended Schedules B and C to the Quarterly and Year End Reports for the year ended April 30, 2002, the quarter ended July 31, 2002, and the quarter ended October 31, 2002, following comments by the British Columbia Securities Commission. Such comments primarily found that the information previously filed by the Company in those Reports were materia1ly deficient in its failure to set forth certain expense breakdowns in Schedules B and further, that the Company must provide more meaningful presentations of its oil and gas production, drilling revenues, lease operating expenses, liquidity and solvency discussiom and oil and gas reserves in the Management Discussions and Analyses in Schedules C. The Commission also asked that results of certain drilling operations previously announced by press release be furnished. Pending the review of the required amendments, the Company was placed on the Commission's "Issuer's in Default" list.

The Company's common shares are listed on the TSX 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."