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

"Tuesday, September 30, 2003

KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the three months ended July 31, 2003, of US$1,097,885, compared to US$585,952 for the three months ended July 31, 2002, resulting in a loss (unaudited) of US$85,790 for the three months ended July 31, 2003, compared to a loss of US$203,891 for the same period of 2002. Total assets at July 31, 2003, were US$1,443,449(unaudited), compared to US$1,370,021 at April 30,2003. The Company reported a deficit of US$2,564,174 (unaudited) at July 31, 2003, compared to a deficit of US$2,478,384 at April 30, 2003. The Company had outstanding 10,601,501 common shares at July 31, 2003.

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."