CORRECTION: Kenai Resources Ltd.; Sao Chico Gold Project, Brazil-Maiden Mineral Resources and Reduced Royalties

The following corrects and replaces the release issued on behalf of Kenai
Resources Ltd. (TSX VENTURE:KAI). The text of the release was incorrect and was
not the one provided by the company. 


Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") announces major advances in its
Sao Chico Gold project with an update of its NI 43-101 Technical Report, the
release of its Maiden Mineral Resource estimate and negotiation of significantly
reduced royalty obligations. 


Updated NI 43-101 Technical Report

An updated NI 43-101 Technical Report is to be filed with SEDAR in the next few
days covering the Sao Chico project, which is located in the Tapajos Gold Belt
in Para state, northern inland Brazil, about 600 kilometres south-east of the
major Amazon River city of Manaus. Sao Chico is within AP12836, a Brazilian
exploration permit of 1416 hectares owned by Kenai's wholly owned subsidiary
Gold Aura do Brasil Mineracao Ltda ("GOAB"). GOAB owns the mineral rights to the
project.


The Technical Report covers in detail results from the limited Stage 1 diamond
drilling campaign at Sao Chico, including the identification of gold-bearing
quartz/sulphide vein structures known from surface workings. The primary author
of the report is Mr Andrew Tunningley, a geologist from Exploration Alliance
Ltd, who was also the primary author of Kenai's initial NI 43-101 Technical
Report dated November 25th, 2010. Mr Bradley Ackroyd is a principal consulting
geologist for Andes Mining Services, who is responsible for the mineral
resources estimate in the current report as summarised below. Both persons are
independent of Kenai and are qualified persons for the purposes of NI 43-101.


Maiden Mineral Resources Estimate and Trial Mining Preparations

The NI 43-101 Technical Report includes the estimate presented below for
estimated mineral resources, covering the three vein structures identified
during the initial 22 hole 3,268 metre Stage 1 diamond drilling program.




                                               Tonnes    Gold (g/t)   Ounces
Main Vein      Measured Mineral Resources       5,064        32.46     5,269
Main Vein      Indicated Mineral Resources     21,423        29.14    20,006
                                            --------------------------------
Total Measured and Indicated Mineral           26,487        29,77    25,275
 Resources                                                                  
                                            --------------------------------
                                            --------------------------------
                                                                            
Main Vein      Inferred Mineral Resources      69,440        27.83    61,940
Highway Vein   Inferred Mineral Resources       8,490        12.21     3,323
Parallel Vein  Inferred Mineral Resources       7,647        24.98     6,123
                                            --------------------------------
Total Inferred Mineral Resources               85,577        26.03    71,385
                                            --------------------------------
                                            --------------------------------



The Stage 1 drilling concentrated on the central part of the Main Vein, and only
drilled along 530 metres of the known east-west strike length of 1000 metres in
AP12836 and less than half the known 400 metres north-south of old workings and
surface vein structures, with further drilling planned for the first half of
2013.


No mineral reserves have been estimated and it is uncertain if further
exploration will result in the delineation of a mineral reserve.


The vein structures all trend east-west and are all sub-vertical, with a dip of
about 85 degrees to the south. The Main Vein shows a high degree of continuity
and is considered suitable for narrow vein shrinkage stoping mining, with a
diluted mining width of 1.4 metres.


As reported previously by Kenai, an application for a GUIA trial mining licence
was lodged in May 2012 and is expected to be approved by the end of the year.
Kenai has completed detailed preparations for trial mining to the level of
detail associated with an advanced pre-feasibility study but has not completed a
definitive feasibility study, without which Kenai cannot be certain of the
economic viability of the trial mining. Subject to permitting and funding, the
GUIA licence operation should allow for the commencement of underground trial
mining ore production in the first half of 2013, at a maximum rate of 50,000
tons over 12 months.


A successful metallurgical testwork program on underground primary ore samples
has been completed at SGS Mineral Services at Lakefield, Ontario. Results from
that program showed high metallurgical recoveries of gold. Planning is underway
for the installation of a simple mineral processing plant, which will include
crushing and grinding, followed by gravity separation of a high grade
gold/silver gravity concentrate from which a gold dore product can be recovered
on site, and a gold/silver flotation concentrate from the gravity plant
tailings. Commercial discussions are under way with smelters and refineries for
the sale of the end products.


Reduced Vendor Royalty Obligations

Following extensive negotiations between GOAB and the Brazilian vendors of the
Sao Chico project over the past 12 months, the previous royalty payable to the
vendors which had been negotiated prior to Kenai's involvement at a NPI (Net
Profit Interest) level of 40%, has now been substantially reduced. All parties
agreed the revised terms to maximise the potential to enable funding so as to
enable work and development at Sao Chico to continue. Under the revised terms
(in US$ at a rate of US$1=R$2), GOAB will pay the following:




I.  Unconditional Payment
    Property acquisition payment
    - US$600,000 (US$75,000 per quarter from December 2012 to September
    2014) 
II. Conditional on Receipt of Project Financing for production 
    Property acquisition payment
    - US$3,500,000
    - US$1,500,000 30 days after project financing plus
    - US$2,000,000 over 36 equal monthly instalments starting 11 months
    after project financing 
III.Conditional on Production
    Production based royalties
    - 3% Net Smelter Royalty (NSR) to a maximum of US$10,000,000 (ie this
    NSR would cease after some 200,000 ounces of production at a US$1600
    gold price)
    - US$3.75 per ounce of gold production 



Based on a $1,600 gold price and 100,000 ounces of gold production, this equates
to an average NSR of 3.2%. Based on 500,000 ounces of gold production, this
equates to an average NSR of 1.5% (as the 3% NSR would cease after some 200,000
ozs).


The above amounts are based on production from gold in AP12836. There are other
minor royalty payments on metal production from any new exploration permits
arising from the further contiguous and nearby 6,763 hectares which are the
subject of current exploration permit applications.


About the Sao Chico, Brazil project

The Tapajos Gold Belt, south of the regional city of Itaituba, trends north-west
to south-east for about 200 kilometres, with seven significant gold discoveries
and developments in recent years, notably Eldorado Gold Corporation's TZ
(Tocantinzinho) project and Serabi Gold plc's Palito project.


The Sao Chico project, like all the other discoveries, evolved from the old
workings mainly in and after the huge 1970s and 1980s local gold rush. Much of
the region has been crudely mined by artisanal miners (garimpeiros), mainly from
simple alluvial workings with inefficient gravity separation and gold recovery
by amalgamation, but only at surface or near surface because the simple
garimpeiro methods could not extract gold from primary or unoxidised ores.


At Sao Chico, over an east-west strike length of about 900 metres and
north-south 400 metres, some 220 old workings, mainly shallow shafts, have been
identified by GOAB. Following prior GOAB surface trenching to trace the
gold-bearing quartz veins, Kenai's Stage 1 diamond drilling was the first ever
undertaken in the Sao Chico area. That drilling program of 3,268 metres
confirmed the hypothesis of a series of sub-parallel near vertical vein
structures, in the same rocks and with the same structure as the Palito mine 30
kilometres north-east.


About Kenai Resources Ltd.

Kenai is a Canadian company focused on precious mineral project exploration and
development, towards early significant gold production. Its principal current
activity is at the Sao Chico project, with a corporate priority towards the
earliest possible cash flow generation from Sao Chico.


On behalf of the Board of Directors,

Greg Starr, President and CEO

Forward-Looking Statements: Statements in this news release that are
forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed and elsewhere in the company's
periodic filings with Canadian securities regulators. The economic viability of
the mineral resources estimates described herein has not been established and
may not be. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
company does not assume the obligation to update any forward-looking statement.


Kenai's Vice President Technical Services, Neil Cole, is responsible for
technical information in this news release. Mr Cole has sufficient experience
which is relevant to the style of mineralization under consideration and to the
activity which is being undertaken and planned to qualify as a Qualified Person
under NI 43-101. Mr Cole has verified the technical data disclosed in this
release, including references to planned exploration and operational activities,
and the sampling of the gold-bearing vein structures. Mr Cole has consented to
the inclusion in this release of such technical information in the form and
context in which it appears.


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