KAI Kenai Resources Ltd.

Kenai Resources Ltd. ("Kenai") (TSX VENTURE:KAI) - 



--  Engagement of key Geological Consultants Exploration Alliance Ltd.
    
--  Engagement of key Engineering Personnel and Project Managers D.E.N.M.
    Ltd.
    
--  Commencement of infrastructure improvements on site
    
--  Commencement of plant foundations construction
    
--  Plant progressing through Customs
    
--  TSX-V reviewing independent NI 43-101 Technical Report



Further to the Company's News Release of September 21, 2010, the Company wishes
to provide an update of its activities toward consummating the Sao Chico Gold
Project option, TSX Venture Exchange approval and progress towards early gold
production.


About the Sao Chico Project:

The Sao Chico gold project is the subject of the recently announced Option
Agreement dated September 21, 2010 between Kenai and Gold Anomaly Ltd. ("Gold
Anomaly"). The Option Agreement, along with the recent NI 43-101 report
commissioned by Kenai and supporting papers have been lodged with TSX-V for
which conditional approval has been received.


The Option Agreement provides Kenai with the right to acquire initially 50% and
thereafter in stages 75% and 100% of the Sao Chico gold project. The project is
subject to an existing 40% net profit sharing agreement ("NPI") and a royalty
equivalent to US$8.80 per ounce of gold production, payable to the owner of the
mining rights.


The Sao Chico project is centred at 6.41 degrees S 55.94 degrees W, 240
kilometres south of the city of Itaituba, capital of Para state, and 580
kilometres south-east of the major inland port city of Manaus. It is located in
the emerging Tapajos Gold District, 54 kilometres south-east of the
Tocantinzinho project recently acquired by Eldorado Gold Corp. and 23 kilometres
south-west of the established Palito underground gold mine owned by Serabi
Mining plc, in which Eldorado Gold Corp. acquired a 26.8% equity interest in
June 2010. Mineralisation at Sao Chico is located within the same geological
sequences that host the Tocantinzinho and Palito gold project defined mineral
resources.


The Sao Chico project is within a single Authority to Prospect exploration
permit, AP12836, of 1416 hectares, within which there is a small trial-mining
Use Permit (locally, "GUIA") covering 56.5 hectares. The GUIA covers the area of
historical garimpeiro or artisanal mining and permits 50,000 tons to be mined
and processed up until June 6, 2011, with the possibility of a 12 month
extension for a further 50,000 tons. An application for renewal has been lodged
covering a further three year term for AP12836 from November 30, 2010, when the
current permit expires.


The following Sao Chico project information is taken from information and
earlier releases provided by Gold Anomaly.


Apart from garimpeiro activity over around 30 years, for which there are no
production records, there has been no prior modern exploration. Gold Anomaly's
local subsidiary has conducted exploration work including 16 trenches totalling
377 metres. The local owner of the mining rights constructed a vertical shaft to
a depth of some 18 metres on one of the quartz-sulphide veins and established a
drive in the primary vein material, shown in the Gold Anomaly photo below, along
a strike length of approximately 68 metres. Gold Anomaly channel sampled the
drive with several high grade intercepts, including a maximum assay of 348 g/t
gold over 1 metre. Gold Anomaly's limited historical metallurgical testwork has
indicated satisfactory gravity processing recoveries and very good cyanide
process leach recoveries.


To view the first photo accompanying this press release, please click on the
following link: http://media3.marketwire.com/docs/KAI4.jpg


Engagement of key Geological Consultants Exploration Alliance Ltd.

Kenai has now engaged Exploration Alliance Ltd. ("EAL") to coordinate and direct
the technical work towards the demonstration of defined mineral resources and
mineral reserves at Sao Chico. EAL has prior experience both in the region and
with world class deposits. They are the authors of the recent NI 43-101
technical report on Sao Chico commissioned by Kenai, currently awaiting TSX
approval.


A core early objective of Kenai is to demonstrate over the next year an initial
defined mineral resource for Sao Chico in NI 43-101 compliant terms. Based on
Gold Anomaly's prior work and interpretation, the target is towards an initial
high grade open pit and underground resource containing a minimum of 250,000
gold ounces with substantial blue-sky potential.


Kenai views the project to be significantly larger. It is 54 kilometres
south-east of the 2 million ounce resource Tocantinzinho project recently
acquired by Eldorado Gold Corp. and 23 kilometres south-west of the established
Palito underground gold mine owned by Serabi Mining plc, in which Eldorado Gold
Corp. acquired a 26.8% equity interest in June 2010.


Engagement of key Engineering Personnel and Project Managers D.E.N.M. Ltd.

Kenai, in conjunction with Gold Anomaly, has engaged D.E.N.M. Ltd. ("DENM") as
Project Managers for the early commencement of gold production at Sao Chico,
targeted before the end of 2010.


DENM has extensive experience with the establishment of small scale gold
projects in South America, Central America and Mexico, and have, over the past
two years, been actively involved with the Sao Chico project.


Commencement of infrastructure improvements and pre-production works at Sao
Chico site


Extensive preparatory work is now being undertaken at Sao Chico, mainly covering
several infrastructure improvements and also preparations for the installation
of the gravity processing plant currently being imported to Brazil.


The infrastructure works include building of additional camp accommodation
units, pictured below, with an expanded mess, camp rewiring, water supply and
sanitation, enhanced communications, local roads and airstrip upgrade.


To view the second photo accompanying this press release, please click on the
following link: http://media3.marketwire.com/docs/KAI2.jpg


Work on the preparation of plant foundations has recently commenced, with
preparing the footings for the foundations for the slab on which the gravity
plant and ancillary equipment are to be mounted, as seen in the photo below.


To view the third photo accompanying this press release, please click on the
following link: http://media3.marketwire.com/docs/KAI3.jpg


Plant progressing through Customs

The gold gravity plant concentration units along with ancillary plant items
sourced by Gold Anomaly from Gekko Systems have recently arrived in Brazil. They
are going through Customs clearance and related procedures ahead of being
trucked to Sao Chico within the next fortnight.


It is expected by Kenai that it will be possible for gravity plant commissioning
and initial gold production to occur within the next 60 days.


About Kenai Resources:

Kenai is a Canadian company focussed on precious mineral project exploration and
development, towards early significant gold production. 


Apart from the Sao Chico gold project in Brazil, Kenai is also involved in
exploration projects - Albisu, Nevada, an advanced gold exploration project, and
the wholly-owned Quartz Mountain and Hope Butte gold projects in South-Eastern
Oregon, both located in Malheur County, close to the Oregon border with Idaho.
All three of these projects are epithermal gold projects.


Kenai's current gold resources from the two Oregon projects, aggregating
approximately 500,000 contained gold ounces, are summarized as follows:




                                           Ounces
Project              Tonnes        Grade       Au  Status/Classification    
Quartz Mountain  15,050,200  0.80 g/t Au  352,667  Indicated Resources, NI  
                                                    43-101 compliant        
Hope Butte        5,000,000  0.91 g/t Au  146,300  Historical, not NI 43-101
                                                    compliant               
Footnotes:                                                                  
1.   For Quartz Mountain, resources above a 0.34 g/t cutoff with silver     
     converted to gold equivalent using a ratio of 49.5:1 silver to gold.   
     Metallurgical recoveries were not considered. Indicated resources are  
     as reported in an independent November 2006 NI 43-101 report, posted on
     SEDAR at that time.                                                    
2.   The Hope Butte resources are considered historic in nature, do not     
     comply with current NI 43-101 standards, have not been verified by the 
     Company and therefore should not be relied upon. It is uncertain if    
     further exploration will result in the discovery of an economic mineral
     resource.                                                              



On behalf of the Board of Kenai Resources Ltd.

Greg Starr, President and CEO

FOR ADDITIONAL INFORMATION PLEASE CONTACT:

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.


Shares Outstanding: 35,906,734

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