KAI Kenai Resources Ltd.

Mr. Greg Starr, President of Kenai Resources Ltd. (TSX VENTURE: KAI) ("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.

Contacts: Kenai Resources Ltd. Greg Starr President and CEO 604-669-5753 604-688-9895 (FAX) info@kenairesources.com www.kenairesources.com