VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2012) - 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 zone¹ at its Sao Chico project. The Sao Chico project is located in the Tapaj�s 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 Minera��o 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 29^th, 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

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