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|   | 1. | I                  have reviewed this quarterly report on Form 10-QSB of SFG Financial                  Corporation; |
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|   | 2. | Based                  on my knowledge, this report does not contain any untrue statement                  of                  material fact or omit to state a material fact necessary to make                  the                  statements made, in light of the circumstances under which such                  statements                  were made, not misleading with respect to the period covered by                  this                  report; |
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|   | 3. | Based                  on my knowledge, the financial statements, and other financial                  information                  included in this report, fairly present in all materials respects                  the                  financial condition, results of operations and cash flows of the                  small                  business issuer as of, and for, the periods presented in this                  report; |
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|   | 4. | The                  registrant’s other certifying officer and I are responsible for                  establishing and maintaining disclosure controls and procedures                  (as                  defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the                  small                  business issuer and have: |
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|   | a. | Designed                  such disclosure controls and procedures, or caused such disclosure                  controls and  procedures to be designed under our supervision,                  to ensure that material information relating to the small business                  issuer,                  including its consolidated subsidiaries, is made known to us by                  others                  within those entities, particularly during the period in which                  this report                  is being prepared; |
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|   | b. | Paragraph                  omitted in accordance with SEC transition instructions contained                  in SEC                  Release No. 33-8238; |
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|   | c. | Evaluated                  the effectiveness of the small business issuer’s disclosure controls and                  procedures and presented in this report our conclusions about the                  effectiveness of the disclosure controls and procedures, as of                  the end of                  the period covered by this report based on such evaluation;                  and |
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|   | d. | Disclosed                  in this report any change in the small business issuer’s internal control                  over financial reporting that occurred during the small business                  issuer’s                  most recent fiscal quarter (the registrant’s fourth fiscal quarter in the                  case of any annual report) that has materially affected, or is                  reasonably                  likely to materially affect, the small business issuer’s internal control                  over financial reporting; and |
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|   | 5. | The                  registrant’s other certifying officer and I have disclosed, based on our                  most recent evaluation of internal control over financial reporting,                  to                  the small business issuer’s auditors and the audit committee of the                  registrant’s board of directors (or persons performing the equivalent                  functions): |
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|   | a. | All                  significant deficiencies and material weaknesses in the design                  or                  operation of internal control over financial reporting which are                  reasonably likely to adversely affect the small business issuer’s ability                  to record, process, summarize and report financial information;                  and |
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|   | b. | Any                  fraud, whether or not material, that involves management or other                  employees who have a significant role in the small business issuer’s                  internal control over financial                  reporting. |
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| Dated:   August                  3, 2007 | By:    | /s/                  BRUCE                  STEPHENS                  |
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|                                                    |   | Bruce                  Stephens                                                                                                                            |
|                                                    |   | Chief                  Executive Officer and                                                                                                               |
|                                                    |   | Chief                  Financial Officer                                                                                                                   |

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