KFG Running Production Casing in Spring Hill #6 Well

NATCHEZ, Miss., Sept. 8 /CNW/ -- KFG Resources President, Robert A. Kadane, reported that KFG Resources Ltd's wholly-owned Subsidiary, KFG Petroleum Corporation has run production casing for a completion attempt in the Spring Hill #6 well in the Fayette Field, Jefferson County, Mississippi. The Spring Hill #6 well is a southwest offset to the Spring Hill #1 producer and three potentially productive oil zones were cored between 3840' and 3928' in depth. Completion results will be reported as soon as available.

KFG has approximately 4100 acres of leases in the area and owns a 100% working interest (79.16% net) in the Spring Hill wells reverting to a 74.6% working interest (59.1% net) after payout of all drilling, seismic, land, exploration, development, taxes, and operating costs - currently $2 million USD.

The Company's common shares are listed on the TSX Venture Exchange, Vancouver, B.C. trading symbol "KFG". For additional information please contact Mr. Kadane at [phone].

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

For further information: Robert A. Kadane, President of KFG Resources Ltd., [phone] Web Site: http://www.kfgresources.com