KAI Kenai Resources Ltd.

Kenai Resources Ltd. ("Kenai") (TSX VENTURE:KAI) is pleased to announce
encouraging exploration results from the Sao Chico Gold Project in Brazil from
an initial horizontal loop electromagnetic survey (HLEM) over the main vein zone
at Sao Chico. Initial geophysical surveying of the main vein area at the Sao
Chico Gold Project has revealed the presence of two large anomalous conductive
zones. Persistence of the anomalism throughout all frequencies indicates
significant depth extent. The anomalous zones are most likely associated with
pyritic mineralised zones in the basement granite.


Two composite rock grab samples of pyritic granite from a nearby mine shaft
returned encouraging assay results of 1.61 and 36.0 g/t gold and as previously
reported, similar pyritic samples from the nearby Sao Chico Vein No.1 returned
an average assay result of 15.0 g/t gold. A recent trench in the anomalous area
intersected old garimpeiro workings and a 4.45m zone of stockwork veining.
Follow-up induced polarisation (IP) geophysical traversing has been undertaken
and is currently being interpreted. The results will be used to select targets
for further trenching and drill testing. 


To view the map associated with this press release, please click on the
following link: http://media3.marketwire.com/docs/k112.pdf


The HELM survey was undertaken along a series of 50 metre spaced N-S orientated
lines over the main Sao Chico gold vein area. Several regional traverse lines
were also surveyed and were randomly selected within the AP to the east (1.0km,
1.5km and 4.5km) of the main prospect area. The larger of the two conductive
anomalies was delineated immediately south of the main vein along which a drive
was developed from the Waldimiro shaft at Sao Chico Vein No. 1.


Further south into the anomalous zone, a recent trench (21) area intersected old
garimpeiro workings and a 4.45m zone of stockwork veining. Three channel samples
from within this zone returned assays of 1.02 g/t gold, 2.89 g/t gold and 11.34
g/t gold. A large conductive anomaly was also delineated some 100 metres to the
east of the main zone (where veins are known) and discrete conductive anomalies
were also detected on the two traverse lines 1.0 and 1.5 km to the east. The
latter two areas require follow-up as there are no veins known in these areas. 


Follow-up induced polarisation (IP) surveying has been undertaken and the data
is currently being interpreted to further define the conductivity anomalies and
to select priority targets for drill testing early in 2011. 


As a result of the encouraging exploration results at Sao Chico, Kenai has
decided to cease further exploration at its Albisu project in Northern Nevada.
While the Albisu project showed promise, the potential shown at Sao Chico
combined with growing environmental issues at Albisu led to this decision.


About Sao Chico:

The Sao Chico gold project is located along a prominent NW-SE trend which is the
most mineralized zone within the Tapajos Mineral Field in central-northern
Brazil. The Tapajos field was the site of the biggest gold rush in Brazilian
history in the late 1970's and 1980s when approximately 500,000 garimpeiros
(artisanal miners) rushed to the area to exploit extensive areas of newly
discovered alluvial gold. Approximately 20 to 30 million ounces of gold
(unofficial figures) were produced from these operations before the easily won
alluvial gold deposits were largely depleted. The garimpeiros have little
expertise in underground mining and environmental considerations and were thus
urged by the government to consolidate their small claims and form joint
ventures with established mining companies. The area has had little exploration
by modern exploration methods compared to other equivalent gold fields in the
world. 


The GUIA license provides for mining and processing of up to 50,000 tons of gold
mineralized rock per year for up to two years. It is anticipated that there is
currently sufficient tonnage available to sustain an initial startup operation
commencing at a rate of 50 tonnes per day and increasing to 100 tonnes per day
after two months of plant start-up, from veins that vary in thickness from less
than one centimetre to three metres. It is estimated from Gold Aura Brasil's
trenching and sampling that the vein aggregate thickness over the currently
identified one km strike length is up to around five metres.


Gold recovery will be undertaken via gravity concentration and a processing
plant has been purchased from Gekko Systems in Australia. This plant has now
arrived in Brazil. The new plant components have been delivered to site and the
used components are now Details of Kenai's investment in the Sao Chico project
can be found in its release dated 21 September, 2010.


Kenai announces that it has engaged Seahawk Capital Corp. ("Seahawk"), of
Vancouver, BC, to provide investor relations services. Kenai has agreed to pay
Seahawk $3,000 per month for an initial term of 12 months. The principal of
Seahawk is Saf Dhillon. The agreement is subject to the approval of the TSX
Venture Exchange. 


Kenai also announces that Mr. John Watt has been appointed as CFO to replace Mr.
Paul Larkin. Mr. Watt is a Chartered Accountant with over 37 years of business
experience. He serves as Chief Financial Officer for two other Canadian public
junior mining companies with exploration programs in Latin America. Mr. Watt has
provided financial and tax consulting services to both public and private
companies, and has consulted to foreign filers with the US Securities and
Exchange Commission on Sarbanes-Oxley Act compliance. Mr. Watt earned a B.A.
with a Major in Economics. Mr. Larkin will remain as Corporate Secretary and a
director of Kenai. 


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. Kenai's current indicated and historical gold resources from the two
Oregon projects are summarized as follows:




Project         Tonnes      Grade    Ounces Au  Status/Classification
Quartz      15,050,200   0.80 g/t   Au 352,667  Indicated Resources NI43-101
 Mountain                                        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 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 Service, Neil Cole, as the company's Qualified
Person has declared in writing that scientific or technical information in this
release has been prepared under the supervision of Mr Ken Chapple, Executive
Director of Gold Anomaly Limited. Mr Chapple has sufficient experience which is
relevant to the style of mineralization under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the JORC
Code and to qualify as a "Qualified Person" under NI 43-101. Mr Chapple has
verified the data disclosed in this release, including sampling, analytical and
test data underlying the information or opinions contained in this release. Mr
Chapple consents to the inclusion in this release of the matters based on his
information in the form and context in which it appears.


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