Kenai Resources Confirms High Grade Gold Zones at Sao Chico

Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") is pleased to provide a update
on drilling at the Sao Chico gold project in north central Brazil. High grade
gold assay results have been received from the independent lab for four core
holes. Two strongly mineralized gold zones have been encountered from the
results of 16 core holes that have now been completed over a strike length of
500 meters, for a total of approximately 2,200 meters so far drilled in the
first phase 3,000 meter program. Sulphides have been encountered to a downhole
depth so far of 186 meters or 158 vertical meters. Mineralization is open at
depth and along strike.


As detailed below, the initial exploration target is for a potential high grade
deposit in the range of 1.1 million to 2.2 million tonnes.


Official assays for NI 43-101 reporting purposes have been received from ACME
Analytical Laboratories (Chile) S.A. for the first six holes, with additional
unofficial preliminary assays received for the seventh hole from the nearby
Serabi Mining plc Palito mine assay laboratory. No results have yet been
received for subsequent holes, but high interest sulphide bearing core samples
from holes 8 to 16 have been submitted to both ACME and Palito, with assays
pending.


The assay data now received include the results shown in the table below,
showing reasonable correlation between the ACME and Palito assays. The estimated
true widths shown have been estimated having regard to the surveyed dip of the
vein where intercepted, ranging from about 80 degrees to the south at higher
levels, to near vertical at greater depths. All holes are drilled at 55 degrees
declination from the horizontal, with an azimuth of approximately 10 degrees.




----------------------------------------------------------------------------
                                             Estimated                      
                                                  True       ACME     Palito
                 From         To  Intercept      Width      Assay      Assay
Hole No.       Meters     Meters     meters     meters   g/t gold   g/t gold
----------------------------------------------------------------------------
11-SC-002       38.25      40.11       1.86       1.12       17.7      19.40
                                                                            
                49.10      50.30       1.20                 77.30       60.9
                50.30      51.15       0.85                  0.59           
                51.15      52.28       1.13                  0.34           
                52.28      52.83       0.55                  0.90           
                52.83      53.50       0.67                  1.07           
11-SC-004       49.10      53.50       4.40       2.64      35.93           
                                                                            
11-SC-005      142.13     143.71       1.58       0.95      115.9       97.6
                                                                            
               132.78     133.90       1.12                 115.3      123.2
               133.90     134.93       1.03                 27.20       27.0
11-SC-006      132.78     134.93       2.15       1.29      73.09       77.1
                                                                            
11-SC-007      158.50     160.50       2.00       1.20    pending       62.8
----------------------------------------------------------------------------



The assay data above have been interpreted on an initial longitudinal section,
as shown below.


To view the associated image click on: http://media3.marketwire.com/docs/kenai1.jpg

The drilling plan for the first phase 3000 meter program is shown below. Holes
10 and 12, for which early results are soon expected, and holes 13 and 15, are
testing the Highway Zone area, about 500 meters along strike, east south-east of
the Waldimiro Drive.


To view the associated image click on: http://media3.marketwire.com/docs/kenai2.jpg

In the drilling plan above, the SCDP numbering sequence is the plan as
originally laid out. The actual chronological sequence is shown with the 11-SC
numbering.


The overall 3000 meter diamond drilling program is scheduled to be completed
during December, with an updated NI 43-101 report soon thereafter, assessing
initial mineral resources and also metallurgical testwork which is under way at
the SGS Lakefield laboratory in Ontario, Canada.


Sao Chico Initial Exploration Target: Potential Size(1)

The interpretation of the mineralization is based on the Sao Chico block model
shown below, and on information from the nearby Serabi Mining plc Palito high
grade, narrow vein underground gold mine(2), which is hosted in the same Paruari
suite of intrusive granites as Sao Chico.


(1) The derived estimates are prepared in keeping with NI 43-101, Part 2,
Section 2.3 and clause 18 of the Australian JORC Code.


(2) Mineral Resource and Mineral Reserve Estimate for the Palito Mine, Para
State, Brazil, as at 31 March, 2008, Mello, R and Guzman, C, NCL Brasil Ltda,
September 2008.


Mineralization is interpreted to occur as a sub-parallel series of sub-vertical
lenticular bodies of quartz and disseminated to massive sulphides, hosted within
wider altered granite zones. The potential area for mineralized zones is
outlined by the location of over 200 small shallow garimpeiro shafts indicated
in the figure above, all of which produced gold historically. This shows an
east-west strike length 1,000 meters by 600 meters north-south, within a broader
AP12386 exploration licence area of 1,416 Ha.


To view the associated image click on: http://media3.marketwire.com/docs/kenai3.jpg

The mineralization and structural setting appears to be similar to the Palito
gold mine, as shown below, where 25 sheet-like structures have been identified,
approximately 1200 meters along strike, 800 meters laterally and 250 meters
deep, each typically 1.2 to 2 meters in width.


To view the associated image click on: http://media3.marketwire.com/docs/kenai4.jpg

For the conversion of volumes to tonnages, specific gravity estimates have now
been completed in duplicate for 18 high grade intercept core samples, with a
range of 2.61 to 4.13, for an average of 2.93 or, expressed in bulk density
terms, 2.93 tonnes per cubic meter.


To estimate the exploration target potential at Sao Chico, the following
parameters have been applied:




  Case                                           low estimate  high estimate
- Strike length of vein structures                       500m           750m
- Cumulative sulphide/quartz vein width                    5m             5m
- Vertical depth of vein structure                       150m           200m
- Derived volume           cubic meters               375,000        750,000
- Bulk density             tonnes per cubic meter        2.93           2.93
- Derived tonnage                                   1,100,000      2,200,000
- Grade assumption         g/t gold                        12             15
- Derived contained gold   ounces                     424,000      1,060,000



The Sao Chico target potential tonnages and grades above are conceptual in
nature. There has been insufficient exploration for a defined mineral resource
and it is uncertain if further exploration will result in the delineation of
such a mineral resource.


About Sao Chico

The project is more completely described in Kenai's NI 43-101 Technical Report
on the project, details of which were contained in Kenai's news release of
January 20, 2011. It has since been filed on SEDAR and on Kenai's website at
www.kenairesources.com.


Sao Chico is located within the Tapajos region in Brazil, the site of one of the
biggest gold rushes in recent history. In the late 1970's and 1980s,
approximately 500,000 garimpeiros rushed to the region to exploit extensive
areas of newly discovered alluvial gold, producing approximately 20-30 million
ounces of gold before the easily won alluvial gold deposits were largely
depleted. Little modern exploration has been conducted over the region to date.


As previously advised, ASX-listed Gold Anomaly Ltd via its wholly owned
Brazilian subsidiary GOAB, until Kenai exercises its options to acquire 50% and
then 75% equity in GOAB, holds the Sao Chico mineral rights to the Sao Chico
project in consideration for loan funds provided by Kenai for activities to date
at Sao Chico. The options expire on September 3rd, 2012.


About Kenai Resources

Kenai is a Canadian company focused on precious mineral project exploration and
development, towards early significant gold production. In addition to the Sao
Chico gold project in Brazil, Kenai is also involved in exploration of the
wholly-owned Quartz Mountain and Hope Butte epithermal gold projects in
South-Eastern Oregon, both located in Malheur County, close to the Oregon border
with Idaho. Kenai's current indicated and historical gold resources from the two
Oregon projects are summarized as follows:




                                        Ounces                              
Project             Tonnes       Grade    AuEq Status/Classification        
Quartz Mountain 15,050,200 0.80 g/t Au 352,667 Indicated Resources NI 43-101
                                               compliant                    
Hope Butte       5,000,000 0.91 g/t Au 146,300 Historical, not NI 43-101    
                                               compliant                    
                                                                            
Footnotes:                                                                  
1.   For Quartz Mountain, resources above a 0.34 g/t cutoff with silver     
     converted to gold equivalent using a ratio of 49.5:1 silver to gold.   
     Metallurgical recoveries were not considered. Indicated resources are  
     as reported in an independent November 2006 NI 43-101 report, posted on
     SEDAR at that time.                                                    
2.   The Hope Butte resources are considered historic in nature, do not     
     comply with current NI 43-101 standards, have not been verified by the 
     Company and therefore should not be relied upon. It is uncertain if    
     further exploration will result in the discovery of an economic mineral
     resource.                                                              



On behalf of the Board of Directors of Kenai Resources Ltd.

Greg Starr, President and CEO

Forward-Looking Statements: Statements in this 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 viabilities of the resources
estimates discussed in the release have 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.


The technical content of this news release has been reviewed by Kenai's Vice
President Technical Services, Neil Cole, who 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.


Shares Outstanding: 62,406,734