KFG Resources Ltd. Provides Operations Update

NATCHEZ, Miss., March 20, 2013 /CNW/ -

OPERATIONS UPDATE

Mississippi

Mr. Robert A. Kadane, President of KFG Resources Ltd., reported today that the Company's subsidiary, KFG Petroleum Corporation, of Natchez, Mississippi, has reopened production in the Stewart "B" Sand in the Carthage Point Field, Adams County, Mississippi. The KFG MacNeil #2 well encountered 12 feet of Stewart "B" Sand at 4390 feet. Casing was set and the well was completed flowing 70 BOPD, 10% water, flowing tubing pressure 430#. KFG has an 8% working interest reverting to a 20% working interest after payout. A north offset will be drilled within the next 90 days.

At Fayette, the #26-2 well has been completed for 6 BOPD. Fayette has reached payout; consequently, KFG's working interest reverted from 100% to 74.9%. Additional shallow wells will be drilled later in 2013.

Louisiana

At the Clayton Field, Concordia Parish, Louisiana, the #1 Miller has started production in the E-2 Sand at a rate of 25 BOPD. KFG has a 5% working interest before payout and an 18% working interest after payout.

In addition, the Company is assembling acreage in Louisiana and Mississippi for an active drilling program in the summer and fall of 2013, as well as continued development at Fayette.

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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