Kenai Resources Ltd.: Sao Chico, Brazil-Technical Report Details High Grade Gold Resources

Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") advises the filing on SEDAR of
its updated NI 43-101 Technical Report, reporting its maiden mineral resources
estimate and covering in detail results from the initial diamond drilling
campaign at Sao Chico, including the identification of high grade gold-bearing
quartz/sulphide vein structures known from surface workings.


Due to the high grade and compact geography of the gold resource, Kenai is
currently evaluating commencement of trial mining with the objective of
generating immediate cash flow. Surplus cash from trial mining can be used to
finance an exploration program aimed at identifying a significantly larger gold
resource in the immediate vicinity of this maiden resource area. Trial mining is
the planned precursor to Kenai's application for a Mining Concession which will
not have the same 50,000 tons per annum production limit that is a provision of
the pending trial mining license.


Mr. Greg Starr, President and CEO of Kenai Resources Ltd., said, "This shallow,
high grade gold resource is an excellent place for Kenai to initiate trial
mining. The continuity of the gold grade in the Main Vein and the excellent
metallurgical test results provide a lower risk opportunity to generate
significant cash flow. With a grant of a trial mining concession, we plan to
recover an initial 58,000 ounces of gold over an 18 month period. With the cash
flow generated from this trial mining we aim to explore fully this highly
prospective area of the prolific Tapajos gold belt together with applying for a
Mining Concession."


Maiden Mineral Resources Estimate

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




                                                              Gold          
                                                   Tonnes     (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 Resources     26,487    29.77    25,275
                                                   ------    -----    ------
                                                                            
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 primary author of the NI 43-101 Technical 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 25, 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 above. Both persons are independent of Kenai and are qualified
persons for the purposes of NI 43-101.


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 previously reported by Kenai.


About the Sao Chico, Brazil project

The Sao Chico project 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") which owns the Sao Chico mineral rights.


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 1000 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.


To view the map accompanying this press release, please click on the following
link: http://media3.marketwire.com/docs/kai1.pdf


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.


Shares Outstanding: 105,906,734

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Kenai Resources Ltd.
[phone]
[phone] (FAX)
[e-mail]
www.kenairesources.ca