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

"Friday, February 6, 2004

Mr. Robert a. Kadane, President of KFG Resources Ltd., announced today that the Company's subsidiary, KFG Petroleum Corporation, has recompleted its Dale B #5 well in the north Horseshoe Field, Concordia Parish, Louisiana. The well was perforated in the Miner Sand from 5,287 feet to 5,290 feet, and, on a 24 hour test flowed 63 BOPD and no water through a 6/64th choke, flowing tubing pressure 412 pounds. KG petroleum has a 25.12% working interest (18.8% net revenue interest) in the well.

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."