Kenai Resources Ltd. (TSX-V: KAI.V)

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VANCOUVER, BRITISH COLUMBIA--(Marketwire -03/29/12)- Kenai Resources Ltd. (TSX-V: KAI.V - News) ("Kenai") announces that it has negotiated, subject to the acceptance by the TSX Venture Exchange, a non-brokered private placement of up to 35,000,000 units (the "Units") at a price of $0.10 per Unit. Each Unit will be comprised of one common share and one-half of one common share purchase warrant, of which one whole warrant will entitle the holder to purchase one additional common share at a price of $0.125 for a period a twelve months from the closing of the private placement. Eldorado Gold Corp. has committed to subscribing for 15,000,000 Units of the private placement which, upon exercise of the attached warrants, would represent approximately19.6% of the then issued capital of Kenai. Finder's fees may be payable on a portion of the private placement, in accordance with the policies of the TSX Venture Exchange.

The net proceeds will be used to prepare the Sao Chico project for trial mining and processing of 50,000 tons of high grade gold bearing material over an initial 12 month period. Kenai is applying for and expects to be granted a trial mining licence from appropriate Brazilian authorities. Kenai is also preparing a NI 43-101 compliant Mineral Resources estimate, assembling various reports associated with the trial mining licence grant and in discussions regarding the required development finance. Additional infill drilling may be undertaken during the development stage. Further details associated with on-going drilling and production commencement will be provided in separate news releases.

Under a recently entered into letter agreement (the "Agreement") with ASX-listed Gold Anomaly Ltd ("GOA"), Kenai is acquiring 100% of GOA's wholly-owned subsidiary, Gold Aura do Brasil Mineracao Ltda ("GOAB"), which holds 100% of the Sao Chico gold project mineral rights located along a prominent NW-SE trend which is the most mineralized zone within the Tapajos Mineral Field in central-northern Brazil. 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.

About the Sao Chico, Brazil project

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 government 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. Kenai has recently completed an initial 3,268 meters, 22 hole diamond drilling program, confirming a 530 meter strike length high grade gold zone at the Sao Chico project which is held by GOAB.

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.

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. Specifically, completion of the private placement of up to $3,500,000 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. The economic viabilities of the resources estimates discussed in the news 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 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 reef 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: 62,406,734

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.
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Kenai Resources Ltd.
604-669-5753
604-688-9895 (FAX)