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Mr. Greg Starr, President of Kenai
Resources Ltd. (TSX VENTURE:KAI - News;
"Kenai") announces that due to strong demand, Kenai has increased
the private placement announced on January 17, 2011 from $5,000,000 to
$6,000,000. These funds will be raised by Kenai issuing up to 24,000,000
units at a price of $0.25 per unit, each unit consisting of one common share
and one-half of one share purchase warrant. Each whole warrant will entitle
the holder, on exercise, to purchase one common share at a price of $0.35 for
a period of two years from the date of issue.
Finder's fees may be payable on a
portion of the private placement, in accordance with the policies of the TSX
Venture Exchange.
A substantial portion of the net
proceeds of the private placement will be used to fund Kenai's acquisition
costs and initial exploration and development commitments under its option to
purchase up to a 100% interest in the Sao Chico gold project located in
Northern Brazil. The balance of the funds will be used for working capital
purposes. Details of Kenai's investment in the Sao Chico project can be found
in its news release dated September 21, 2010.
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 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. Specifically, completion of the private placement of up to
$6,000,000 is subject to a number of conditions, including but not limited
to, TSX Venture Exchange acceptance. There can be no assurance that the private
placement will be completed as proposed or at all. 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.
Shares Outstanding: 35,906,734
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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