KFG Resources Signs With CHF Investor Relations


<p>NATCHEZ, Miss., <chron>Oct. 5</chron> /CNW/ -- KFG Resources Ltd. ("KFG", TSXV: KFG) today announced that, subject to Exchange acceptance, it has retained CHF Investor Relations ("CHF"), a well established, Toronto-based, Canadian IR firm with another Canadian office in <location>Calgary</location>; as well as branch offices in New York, USA; <location>Sao Paulo</location>, <location>Brazil</location>; and <location>Shanghai</location>, <location>China</location>.</p>
<p>KFG <person>President Bob Kadane</person> commented, "Since we have completed the drilling of one successful well at Fayette having three producing zones, with a current flow of 50 bopd out of only the first zone and we are expecting several successful offsets to be drilled to add substantially to its production, clearly a new pro-active approach to investor relations will showcase KFG's value and potential to the financial community. Meanwhile, completion operations are underway at Fayette where pipe has been set in an east offset to the discovery well."</p>
<p>Effective immediately, the services agreement for investor relations and market-making is for a fixed term of twenty-four months subject to a satisfactory performance review at the six-month mark. Services may be cancelled before <chron>September 30, 2011</chron>, and after six months upon provision of 60 days written notice. The agreement compensates CHF with fees of C$6,000 per month plus applicable disbursements. The Company has granted CHF, subject to Exchange approval, incentive stock options in the amount of 250,000 options exercisable at C$0.10 per for a period of two years. Further, these options shall vest in stages whereby one-quarter will vest at the end of successive three-month periods from the grant date. All options are subject to cancellation 30 days after termination of the contract as is required for Tier 2 Issuers.</p>
<p>It is intended that CHF will initiate its Market Liquidity Program, more commonly referred to as market-making ("MM"), through CHF's <location>Calgary</location> office. The MM activity will be undertaken by CHF through a registered broker in compliance with the guidelines established by the TSX Venture Exchange Policy 3.4 and other relevant policies.</p>
<p>Prior to the grant of options described above, CHF had no interest, directly or indirectly, in KFG or its securities.</p>
<p>Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.</p>


For further information: For further information: Robert Kadane, President KFG Resources Ltd., +1-303-825-7080; or Christopher Haldane, Account Manager of CHF Investor Relations, +1-416-868-1079, ext. 237, chris@chfir.com, for KFG Resources Ltd. Web Site: http://www.kfgresources.com

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