VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 08/09/11 — Kenai Resources Ltd. („Kenai“) (TSX VENTURE: KAI) is pleased to provide the following update on the Sao Chico gold project in north central Brazil.
Modifications to Kenai-s Option Agreement with Gold Anomaly
Under its original September 21st, 2010 Option Agreement („Original Agreement“) with Gold Anomaly Limited („GOA“), the owner of the rights to the Sao Chico project, Kenai has to date advanced A$2.5m in loan funds to GOA.
Kenai has executed an August 5th, 2011 agreement with GOA, formalizing changes agreed to since the Original Agreement, and triggering the release of A$1.0m in further loan funds from Kenai to GOA for the Sao Chico project resulting in a total of A$3.5m in loan funds to GOA. The material changes to the original terms agreed under the recent agreement include the following:
About Sao Chico:
The project is more completely described in Kenai-s NI 43-101 Technical Report on the project, details of which were contained in Kenai-s news release of January 20, 2011. It has since been filed on SEDAR and on Kenai-s website at .
Sao Chico is located within the Tapajos region in Brazil, the site of one of the biggest gold rushes in recent history. In the late 1970s and 1980s, approximately 500,000 garimpeiros rushed to the region to exploit extensive areas of newly discovered alluvial gold, producing approximately 20-30 million ounces of gold before the easily won alluvial gold deposits were largely depleted. Despite the gold rush, little modern exploration has been conducted over the region to date, with excellent potential to expand gold operations at Sao Chico. The Sao Chico project team has extensive experience and expertise of operating within the region, which will provide a focussed and systematic effort to gold production and exploration at Sao Chico.
As previously advised, Gold Anomaly via a wholly owned subsidiary will receive all cash flow generated by GOAB at Sao Chico until Kenai exercises its options to acquire 50% and then 75% equity in the Sao Chico mineral rights to the Sao Chico project.
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 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:
Footnotes:
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.
The technical content of this news release has been reviewed by Kenai-s Vice President Technical Services, Neil Cole, who 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.
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.
Contacts: Kenai Resources Ltd. Greg Starr President and CEO 604-669-5753 604-688-9895 (FAX)
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