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

"Monday, March 29,2004

KFG Resources Ltd. announced today that it had consolidated revenues (unaudited) for the nine months ended January 31, 2004, of US$3,236,666, compared to US$2,349,665 for the nine months ended January 31, 2003, resulting in a loss (unaudited) of US$141,379 for the nine months ended January 31, 2004, compared to a loss of US$207,387 for the same period of 2003. Total assets at January 31, 2004, were US$l,151,262 (unaudited), compared to US$1,370,021 at Apri1 30, 2003. The Company reported a deficit of US$2,619,763 (unaudited) at January 31, 2004, compared to a deficit of US$2,478,384 at Apri1 30, 2003. The Company had outstanding 10,601,501 common shares at January 31, 2004.

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."