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

"Tuesday, January 8, 2008

KFG Resources Ltd. reported today that it has consolidated revenue (unaudited) for the six months ended October 31, 2007, of US$374,756, compared to US$380,293 for the six months ended October 31, 2006, resulting in a net loss (unaudited) from operations of US$58,906, compared to a net loss (unaudited) from operations of US$112, 187 for the six months ended October 31, 2006. Total assets at October 31, 2007 (unaudited) were US$2,859,841 compared to US$567,430 at April 30, 2007. The Company reported a deficit (unaudited) at October 31,2007, of US $1,703,673, compared to a deficit of US$1,898,694 at April 30, 2007. The Company has 42,147,311 common shares outstanding at October 31,2007.

Mr. Robert A. Kadane, President of the Company, noted that the October 31, 2007, figures include the net proceeds of the brokered private placement of 25,000,000 Units of the Company completed in October, 2007. Mr. Kadane also reported that the previously announced drilling by the Company's subsidiary, KFG Petroleum Corporation, of an oil test well in Adams County, Mississippi, in the Mantua Field, resulted in a dry hole.

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 press release."

"James F. Gilbert"
James F. Gilbert, Secretary