Fayette Field Update

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NATCHEZ, Miss., April 7, 2011 /CNW/ -- KFG Resources President Robert A. Kadane reported that the Company's subsidiary, KFG Petroleum Corporation, is running production casing in the Spring Hill #7 well....the southernmost well in the field. Two Wilcox oil sands were encountered........the 4600' sand and the Upper Lobe of the Stewart A Sand. This well potentially opens up the southern part of the Spring Hill area for several offset locations. Development will resume after extensive testing of the #7 well. Production test results will be reported as soon as they become available.

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 (303) 825-7080.

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

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SOURCE KFG Resources

For further information: Robert A. Kadane, President of KFG Resources, +1-303-825-7080 Web Site: http://www.kfgresources.com

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KFG Resources

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