KFG Resources Announces Stock Option Plan Amendment, Election of Directors

    ("KFG" - TSX-V)

    NATCHEZ, MS, Sept. 12 /CNW/ - KFG Resources Ltd. (the "Company" or
"KFG"), an independent emerging North American natural gas exploration and
production company, is pleased to announce an amendment to its stock option
    The amendment to the stock option plan adopted by the Directors of the
Company, increasing the number of common shares reserved for issuance from
1,200,000 to 4,200,000, being just under 10% of the issued and outstanding
shares of the Company presently outstanding, was ratified by disinterested
shareholders of KFG at the annual and special meeting held on September 12,
2008. The amendment of the stock option plan is subject to final approval of
the TSX-V.
    In other business conducted at the meeting, shareholders re-elected
Robert Kadane, Keith Pople and Michael Raftery as directors of the Company.
Davidson & Company were re-appointed as the Company's auditors.

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

For further information:

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

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KFG Resources Ltd.

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