KFG Resources Announces Annual Oil and Gas Filings, Year End Results

KFG Resources Ltd. (the "Company" or "KFG") is pleased to announce that its annual oil and gas reserve data at April 30, 2008 is available at www.sedar.com.

The Company is also pleased to announce its financial results for the year ended April 30, 2008.  KFG Resources Ltd. had consolidated revenues (audited) for the year ended April 30, 2008 of US$798,214, compared to US$641,915 for the year ended April 30, 2007, resulting in a net loss from continuing operations of US$64,051, compared to a net loss ofUS$622,993 for the year ended April 30, 2007.  The decrease is primarily attributable to the recovery of a net amount of $179,632 in settlement of a lawsuit.  Total assets at April 30, 2008 were US$2,957,592 compared to US$567,430 at April 30, 2007, an increase attributable to the equity financing completed during fiscal 2008.  KFG had cash at April 30, 2008 of $2,660,826 and believes these funds are sufficient to satisfy the obligations existing at year end and its capital plans through fiscal 2009.  The Company had outstanding 42,147,311 common shares at April 30, 2008.

KFG is listed on the TSX·Venture Exchange, under the symbol "KFG".  

For further information please contact:
KFG Resources Ltd.,
118 Lower Woodville Road,
Natchez, Mississippi, 39120.
Phone (303) 825-7080.

Mr. Robert A. Kadane,
President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release."