Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") is pleased to provide an update
on progress at the Sao Chico Gold project located on the Tapajos Gold Belt in
Brazil.


Kenai's wholly owned subsidiary Gold Aura do Brasil Mineracao Ltda ("GOAB") has
recently received the Licenca de Operacao ("LO"), valid for 12 months, from
SEMA, the Para state environmental authority. Subsequent to this condition
precedent, GOAB has also received the trial mining GUIA licence, which has yet
to be formally gazetted, from DNPM, the Brazilian Mines Department. 


The President and CEO of Kenai, Mr Greg Starr commented "This is a major
milestone for Kenai allowing for a high grade underground mine development,
initially by way of a trial mining GUIA licence. Kenai's directors consider this
to be a very positive step towards initial production from Sao Chico, with a
simple ore processing flowsheet including crushing and grinding, and gravity
concentration, followed by either cyanidation or flotation of the gravity plant
tailings."


Commencement of Stage 2 Diamond Drilling Program

Following the success of the Stage 1 drilling program in Q4 2011, the Stage 2
diamond drilling program has now commenced:




--  A program in the order of 6000 metres is planned, using two rigs. 
--  GOAB has marked out where the first 16 holes are to be collared. 
--  Drilling pads have been prepared for the first nine holes. 
--  A mix of exploration and in-fill resources definition drilling is
    planned. 
--  The first six holes are for three holes in each of two areas outside the
    main vein, where there are clusters of old garimpeiro workings, as yet
    untested by drilling. 
--  Both rigs commenced drilling on June 6th, with 95 metres drilled to
    date, and initial intercepts of quartz/sulphide vein zones anticipated
    in the next two weeks. 
--  Using the same crews and in the same drilling conditions, the monthly
    drilling rate achieved in the Stage 1 drilling program was about 1500
    metres per month, with two rigs. 
--  For ongoing drill program planning and scheduling, GOAB plans the same
    assaying protocol as for the Stage 1 drilling program, with rush assay
    samples prepared and assayed at Serabi Gold plc's nearby Palito assay
    laboratory, and with official NI 43-101 fire assays done at an
    accredited external laboratory. 



The objective of the Stage 2 drilling program is to extend the size of NI 43-101
compliant mineral resources from the maiden high grade mineral resources
estimate released on October 15th, 2012. A further outcome of this work will be
the completion of the necessary FER (Final Exploration Report) to be filed with
DNPM, which is a prerequisite to the submission of an application for a long
term Mining Concession for Sao Chico.


About the Sao Chico, Brazil project

The Sao Chico project is located in the Tapajos Gold Belt in Para state,
northern inland Brazil, about 600 kilometres south-east of the major Amazon
River city of Manaus. Sao Chico is within AP12836, a Brazilian exploration
permit of 1416 hectares owned by GOAB, which owns the Sao Chico mineral rights.
The Tapajos Gold Belt, south of the regional city of Itaituba, hosts seven
significant gold discoveries and developments in recent years, notably Eldorado
Gold Corporation's TZ (Tocantinzinho) project and Serabi Gold plc's Palito
project.


The Sao Chico project, like all the other discoveries, evolved from the old
workings mainly in and after the huge 1970s and 1980s local gold rush. Much of
the region has been crudely mined by artisanal miners (garimpeiros), mainly from
simple alluvial workings with inefficient gravity separation and gold recovery
by amalgamation, but only at surface or near surface because the simple
garimpeiro methods could not extract gold from primary or unoxidised ores.


At Sao Chico, over an east-west strike length of about 1000 metres and
north-south 400 metres, some 220 old workings, mainly shallow shafts, have been
identified by GOAB. Following prior GOAB surface trenching to trace the
gold-bearing quartz veins, Kenai's Stage 1 diamond drilling was the first ever
undertaken in the Sao Chico area. That drilling program of 3,268 metres
confirmed the hypothesis of a series of sub-parallel near vertical vein
structures, in the same rocks and with the same structure as the Palito mine 30
kilometres north-east.


About Kenai Resources Ltd.

Kenai is a Canadian company focused on precious mineral project exploration and
development, towards early significant gold production. Its principal current
activity is at the Sao Chico project, with a corporate priority towards the
earliest possible cash flow generation from Sao Chico.


On behalf of the Board of Directors,

Greg Starr, President and CEO

Forward-Looking Statements: Statements in this news 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 viability of
the mineral resources estimates described herein has 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 news 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 vein structures. Mr Cole has consented to
the inclusion in this release of such technical information in the form and
context in which it appears. 


Shares Outstanding: 105,906,734

FOR FURTHER INFORMATION PLEASE CONTACT: 
Kenai Resources Ltd.
604-669-5753
604-688-9895 (FAX)
info@kenairesources.com
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