Kenai Resources Ltd.: Sao Chico-High Grade Gold Zone Confirmed-Now Over 540m Strike Length

Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") is pleased to announce that
following the completion of a 3,268 meters, 22 hole diamond drilling program it
has confirmed a 540 meter strike length high grade gold zone(1) at its Sao Chico
project. The Sao Chico project is located in the Tapajos Gold Trend (see Figure
1), a strongly mineralized zone in north central Brazil, south of the regional
city of Itaituba. Kenai recently announced the acquisition from Gold Anomaly Ltd
of its wholly owned subsidiary Gold Aura do Brasil Mineracao Ltda ("GOAB"),
which holds 100% of the Sao Chico gold project mineral rights.


As a result of the completion of the program, drilling has demonstrated



--  strong vertical continuity, with quartz veins so far intercepted in the
    central zone to a vertical depth of approximately 250 vertical meters; 
--  good continuity of very high gold grades in the central zone along an
    east-west strike length of about 120 meters to a vertical depth of
    approximately 120 vertical meters, with an estimated true width of about
    1.5 meters; 
--  confirmation of anticipated sub-parallel quartz vein structures, north
    and south of the principal Waldimiro Vein structure; 
--  high grades in two parallel quartz veins along an east-west strike of
    about 100 meters in the eastern Highway Vein area, for a combined vein
    width of about 2 meters, so far demonstrated to approximately 80 meters
    vertical depth, and with 
--  considerable further untested potential along strike in the central
    eastern area, to the north and also to the west where numerous
    historical garimpeiros shaft workings exist.



The previously announced exploration target of the between 424,000 and 1,060,000
gold ounces in the Sao Chico area (56 Ha of the whole 1,436 Ha exploration
licence) remains. As reported in detail by Kenai on November 29th, 2011, the
estimated exploration target potential at Sao Chico, is between 1.1 million and
2.2 million tonnes with a grade potential of between 12 and 15 gram per tonne
average. The Sao Chico target potential tonnages and grades on which such
estimates of gold ounces are based 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.


Kenai will now plan the Stage 2 8,000 meter diamond drill program, commence an
update of its January 2011 NI 43-101 report and apply for a trial mining permit
to mine the underground mineralized material.


Details of the above along with relevant diagrams can be found on Kenai's
website www.kenairesources.com.


(1) See Table 1 for assay results and intervals of significant drill intercepts

About Kenai Resources Ltd.

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 (100% - see details in the 19 December 2011 News
Release), Kenai is also involved in exploration of the wholly-owned Quartz
Mountain and Hope Butte gold epithermal gold projects in South-Eastern Oregon,
both located in Malheur County, close to the Oregon border with Idaho. 


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. 


Kenai's Vice President Technical Services, Neil Cole, is responsible for
technical information in this 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 reef structures. Mr Cole has consented to
the inclusion in this release of such technical information in the form and
context in which it appears. 


To view the Figures associated with this release, visit the following link:
http://media3.marketwire.com/docs/Kenai_Figures.pdf


Shares Outstanding: 62,406,734