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

"Thursday, April 13, 2003

KFG Resources Ltd announced today that it had consolidated revenues (unaudited) for the nine months ended January 31, 2003, of US$2,349,665, compared to US$3,333,274 for the nine months ended January 31, 2002, resulting in a net loss of US$207,387 (unaudited) for the nine months ended January 31, 2003, compared to a net loss of US$I48,083 (unaudited) for the same period of 2002. Total assets at January 31, 2003 were US$I,443,701 (unaudited) compared to US$I,511,592 (audited) at April 30, 2002. The Company reported a deficit of US$2,357,182 (unaudited) at January 31, 2003, compared to a deficit of US$2,149,795 (audited) at April 30, 2002. The Company had outstanding 10,601,501 common shares at January 31, 2003. Mr. Robert A. Kadane, President of the Company, noted that the Company realized income for the three month period ended January 31, 2003 of $89,183 (unaudited) compared to a loss for the three month period ended January 31, 2002 of $163,571 (unaudited).

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."