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 mine², which is hosted in the same Paruari suite of intrusive granites as Sao Chico.

¹The derived estimates are prepared in keeping with NI 43-101, Part 2, Section 2.3 and clause 18 of the Australian JORC Code.
²Mineral Resource and Mineral Reserve Estimate for the Palito Mine, Par� State, Brazil, as at 31 March, 2008, Mello, R and Guzm�n, 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.

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:

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 3^rd, 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: