TRADING SYMBOL: TSX-V: KAI                                                                 December 19, 2011                                                        

Shares Outstanding:  62,406,734

KENAI RESOURCES TO ACQUIRE

100% of sao chico gold project

VANCOUVER, B.C. � Kenai Resources Ltd. (TSX-V: KAI, �Kenai�). Mr. Daniel Kunz, Chairman of Kenai, announced today that Kenai has entered into a letter agreement (the �Agreement�) with ASX-listed Gold Anomaly Ltd (�GOA�) to acquire GOA�s wholly-owned subsidiary, Gold Aura do Brasil Minera��o Ltda (�GOAB�), which holds 100% of the Sao Chico gold project mineral rights. The consideration payable by Kenai includes: a) forgiveness of an existing loan of AUD$3,500,000 due to Kenai from GOA which is part of cash advances made by Kenai for the Sao Chico gold project; b) issuance of 10 million common shares of Kenai following regulatory and related approvals, with such shares subject to a 12 month non-trading hold period; and, c) the issuance of an additional 6 million Kenai common shares when one of several development milestones are achieved for the Sao Chico project such as completion of a bankable feasibility study.  Under the terms of the Agreement, Kenai has no other obligations to GOA for royalty, net profit interest or similar payments in the future. 

Mr. Kunz said, �This acquisition simplifies the ownership structure to allow Kenai to focus its efforts on further exploration and a development plan at Sao Chico. Kenai will be releasing all the drill hole and official assay results for the recently completed 3,268 meter drill program when they become fully available within the first quarter of 2012.�

Upon completion of definitive documentation, the Agreement will replace an existing Option and Loan Agreement with GOA under which Kenai forwarded AUD$4,150,817 in anticipation of exercising an option that would have resulted in Kenai acquiring 75% of GOAB.

The Agreement provides Kenai with full ownership of Sao Chico and an oxide ore treatment plant that GOA recently constructed.  Kenai will evaluate the usefulness of the plant which is currently on care and maintenance. Kenai drilling confirmed the discovery of two high grade gold zones containing sulphide mineralization.  Kenai has drilled 3,268 meters in 22 core holes completing the Stage One Diamond drilling program. Almost every drill hole intercepted significant gold bearing structures. Currently, the deepest intercept is 220 meters from surface. The drilling has successfully identified high grade gold mineralization over a 650 meter strike length.  To date, the gold bearing structures have vein true widths from just less than 1 meter to greater than 2.5 meters.

Official gold assays reported in the November 28, 2011 Kenai news release include Drill Hole 002 with an true vein width of 1.12 meters and an official grade of 17.7 grams per tonne gold (�g/t�); Hole 004 intercepted a 2.64 meter wide vein containing 35.9 g/t; Hole 005 hit a 0.95 meter vein width with 115.9 g/t; and Hole 006 intercepted a 1.29 meter vein width containing 73.1 g/t.  For cross sections and plan view drawings of the drilling program please see our website at http://kenairesources.net.  Current exploration activity is confined in a 56 hectare (�Ha�) area of a 1400 Ha exploration lease and GOAB has applications for over 8,000 additional Ha of exploration land.

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, 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.