Kenai Resources Ltd.
TSX VENTURE : KAI

Kenai Resources Ltd.

May 25, 2012 15:26 ET

Kenai Completes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2012) - Kenai Resources Ltd. (TSX VENTURE:KAI) ("Kenai") is pleased to announce that it has closed the non-brokered private placement and has issued 33,500,000 Units at a price of $0.10 per Unit, for gross proceeds of $3,350,000. Each unit consists of one common share and one-half of one common share purchase warrant, of which one whole warrant entitles the holder to purchase one common share of Kenai at a price of $0.125 until May 22, 2013.

Kenai paid cash finders' fees totaling $53,850 and issued 538,500 broker warrants to various brokerage firms and arm's length parties as consideration for their arranging a portion of the private placement. Each brokers warrant is exercisable into one common share at a price of $0.10 until May 22, 2013.

The shares, and any shares to be issued on exercise of the warrants and the broker warrants, are subject to a hold period expiring on September 23, 2012.

Net proceeds from the private placement will be used to further evaluate the mining and milling alternatives available to Kenai on the Sao Chico gold project in Brazil and for general working capital purposes.

As disclosed in Kenai's news release dated March 29, 2012, Eldorado Gold Corp. ("Eldorado"), a public company listed on the Toronto Stock Exchange, acquired 15,000,000 Units of the private placement. Accordingly, Eldorado has been issued 15,000,000 common shares, representing approximately 14.2% of the issued and outstanding common shares of Kenai, plus warrants to acquire an additional 7,500,000 common shares of Kenai. Assuming the exercise of these warrants, Eldorado would then hold 22,500,000, or approximately 19.8%, of the then issued common shares of Kenai (assuming no other warrant or option exercises). The securities were acquired by Eldorado for investment purposes only.

In addition, Gold Anomaly Limited ("GOA"), a public company listed on the Australian Stock Exchange, acquired 4,158,190 Units of the private placement. Accordingly, GOA now holds 14,158,190 common shares, representing approximately 13.4% of the issued and outstanding common shares of Kenai, plus warrants to acquire an additional 2,079,095 common shares of Kenai. Assuming the exercise of these warrants, GOA would then hold 16,237,285, or approximately 15%, of the then issued common shares of Kenai (assuming no other warrant or option exercises). The securities were acquired by GOA for investment purposes only.

About Kenai

Kenai is a Canadian company focused on precious mineral project exploration and development, towards early significant gold production. Through a fully executed Share Purchase Agreement dated in late March 2012, Kenai acquired 100% of the issued and outstanding shares of Gold Aura do Brasil Mineracao Ltda. ("GOAB"), a private Brazilian incorporated company previously owned by Gold Anomaly Limited. GOAB owns the Sao Chico gold project in Brazil with exploration activities located along a prominent NW-SE trend which is the most mineralized zone within the Tapajos Mineral Field in central-northern Brazil. Kenai expects to continue its exploration and development of the Sao Chico gold project in the coming months.

In addition, Kenai has terminated its leasehold in the mineral interests known as the Quartz Mountain and Hope Butte epithermal gold projects in Oregon.

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. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Kenai does not assume the obligation to update any forward-looking statement.

Shares Outstanding: 105,906,734

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.

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