KFG Resources Ltd. Operations Update

Carthage Point Field

NATCHEZ, Miss., Sept. 4, 2013 /CNW/ - Robert A. Kadane, President of KFG Resources Ltd., reported today that the MacNeil #3 well has been drilled, logged, cored, and production casing has been set at 4,610'. The well had 16' of Stewart "B" oil sand – extending the same reservoir found in the MacNeil #2 well located 660' south of the MacNeil #3 well. The Company will report completion data when available (2 to 3 weeks). KFG has an 8% working interest in the well reverting to 20% at payout. The prospect contains 200 acres.

LaGrange Field

The Company's saltwater disposal well, on its Parker lease, has been approved; consequently, completion operations can start on the Company's Parker #2 well. The Company has a 10% working interest in the well and surrounding 160 acres and also has an oil zone behind pipe which will be developed after the Parker #2 well has been on production for an extended period.

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.

SOURCE: KFG Resources Ltd.

Mr. Robert A. Kadane, President, [phone]