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

"Monday, June 23, 2008

KFG Resources Ltd. reported today that the Company's subsidiary, KFG Petroleum Corporation, Natchez, Mississipppi, has completed all field work of the Company's 3D seismic survey of the company's leases covering approximately 14.3 square miles in the Fayette Field area, Jefferson County, Mississippi.  Processing and interpretation of the survey is expected to take from four to six weeks and the Company anticipates that the analysis of the field work will be completed in mid-July, 2008.  If the results of the survey are favorable, the Company will then participate in the drilling of a 10,000 test well durinq the late third quarter or early forth quarter of 2008.  The Company has approximately an eighty percent working interest in the Fayette Field prospect.

Mr. Robert A. Kadane, President of the Company, also reported that the Company is preparing to drill a 6,100 foot Wilcox test well in Avoyelles Parish, Louisiana, on a 640 acre lease block located in Sections 35 and 36, T4N R4E.  KFG Petroleum will act as operator of the well, if successful, and retain a 21% working interest (15.75% net working interest) in the well.  The lease block carries a 25% royalty interest.  If successful, and after payout, the Company's interest will increase to 28.25% working interest (21.1875% net working interest).

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