KFG's #2 Craig Flowing 80 BOPD

Adams County, Mississippi, LaGrange Field

NATCHEZ, Miss., Feb. 26, 2014 /CNW/ - KFG Resources Ltd. President, Robert A. Kadane, reported that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, has completed its #2 Craig well, a 40-acre west offset to its #1 Craig well in the Second Wilcox Sand at 4,335'; and, it kicked off flowing without stimulation at 80 BOPD, flowing tubing pressure of 170# on an 11/64" choke. Both wells are producing at a combined rate of 170 BOPD. The Company has 300 acres under lease and additional development is planned in the early summer of 2014. KFG is operator of the well and has a 10% working interest, reverting to a 22% working interest after payout.

Also, in the LaGrange Field, KFG has logged its Parker #4 well, drilled to a depth of 6,450' and encountered 10' of Wilson oil sand at 6,242'. Production casing has been set and the rig is moving to a new location on the Company's Parker lease – designated as the Parker #3 location. The Company has a 10% working interest in the Parker lease with no reversion and is operator of the well. It will be a 6,450' Wilcox test evaluating several Wilcox oil sands that have produced in the immediate area.

Warren County, Mississippi

The Company is preparing to acidize its Hannah #1 well in the Second Rodessa Sand at 11,180' in mid-March. Production testing will commence after the acid job.

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.

For further information:

Mr. Robert A. Kadane, President [phone]