KFG Operations Update

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    Concordia Parish, Louisiana





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NATCHEZ, Miss., Sept. 13, 2011 /CNW/ -- KFG Resources President Robert A. Kadane reported that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, has staked location to drill the Roundtree#3, a 6000' Wilcox test in Concordia Parish, Louisiana. It is also planned to drill an offset to the #1 well in the fall of 2011. The Company will retain a 12.5% working interest in the project and back in after payout for an additional 20% working interest.

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    Fayette Field, Jefferson County, Mississippi
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As previously reported, the Company set 9900' of production casing in the Spring Hill LT#1 for a completion attempt in the Lower Tuscaloosa formation at 9730'. Unfortunately, we had a bottom channel in the cement job opposite the zone and further attempts to complete the well have been suspended. The new data is being included in the 3D seismic survey and we will await the new interpretation before proceeding. In addition, several of the wells will be worked on this fall to improve production. It is anticipated that at least one more shallow well will be drilled before yearend. KFG holds a 100% working interest (79.16% net) until payout of all costs incurred to date in the field. At payout the Company's interest reverts to a 74.6% working interest (59.1% net).

The Company's common shares are listed on the TSX Venture Exchange, Vancouver, B. C. trading symbol "KFG".

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, +1-303-825-7080 Web Site: http://www.kfgresources.com

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KFG Resources

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