KFG Resources Ltd. Operations Update

Adams County, Mississippi

NATCHEZ, Miss., April 3, 2014 /CNW/ - KFG Resources Ltd. President, Robert A. Kadane, reported that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, has staked two locations in the LaGrange Field – one on the Parker Lease (the Parker #5) and one on the Craig Lease (the Craig #3). Drilling operations should begin in the next 45 days.

Parker Lease

The combined production from the Parker #2 and Parker #4 wells is approximately 105 BOPD. The Parker #3 well has just been put on production in the Wilson Sand at 6,221' and initial production is 20 BOPD. The well will be production-tested for 30 days before deciding whether or not to add another zone. The Company has a 10% working interest in the Parker Lease.

Craig Lease

The Craig #1 well has been flowing for five months – averaging 85+ BOPD with 250 psi flowing tubing pressure. The Company has a 10% working interest in the Craig wells, reverting to a 22% working interest at payout. The #2 Craig well is averaging 40 BOPD.

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.

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