Updated Mineral Resource Estimate At The Promontorio-La Negra Project

VANCOUVER - Kootenay Silver Inc. announced an updated mineral resource estimate at the Promontorio-La Negra Project in Sonora Mexico. The resource estimate is an update of the Promontorio deposit and a maiden mineral resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project.

The mineral resource estimates (MRE) include: Increased Grades of the Promontorio deposit of 24% for Ag, 21% for Au and 22% and 21% for Pb and Zn respectively; A resulting 68% increase in Measured and Indicated ("M+I") Ag Equivalent (AgEq) Metal content at the Promontorio deposit; Promontorio M+I mineral resources of 140.8 million ounces (Moz) AgEq contained in 42.1 million metric tonnes (Mt) averaging 104 grams per tonne (g/t) Promontorio Inferred mineral resources of 39.8 Moz contained in 14.6 Mt averaging 84.9 g/t. These results are calculated using 25 g/t AgEq cut off and are contained within a potentially economically mineable pit shell; La Negra Indicated mineral resources of 22.0 Moz AgEq contained in 5.3 Mt averaging 129 g/t; and La Negra Inferred mineral resources of 4.6 Moz contained in 1.2 Mt averaging 115 g/t These results are calculated using 40 g/t AgEq cut off and are contained within a potentially economically mineable pit shell.

President & CEO, James McDonald, said, "We are pleased to see a significant increase in metal content on the Promontorio-La Negra property that includes the La Negra discovery for the first time. Between the two deposits we see an exciting increase in grade and contained silver ounces.

On a silver equivalent basis, the project is now estimated to host 162.8 million ounces M+I and 44.4 million ounces inferred. On a silver only basis, the M+I resource for silver are estimated to total 68.2 million ounces with another 17.6 million ounces inferred.

The first ever resource estimate for La Negra Silver Deposit returned excellent overall grades, averaging 129 g/t silver equivalent in the Indicated Category and 115 g/t silver equivalent in the Inferred Category. At a cutoff of 50 g/t silver equivalent these grades increase to 146 g/t and 133 g/t silver equivalent respectively with only a modest drop in contained silver ounces.

I would like to point out our expanded resource base, on a silver equivalent basis, the estimated totals for Promontorio-La Negra plus La Cigarra are 214.2 million silver equivalent ounces in the M+I along with 54.9 million silver equivalent ounces inferred.

On a silver only basis, Kootenay's M+I silver resources are estimated to be 120.2 million ounces and 28.2 million silver ounces inferred for the Promontorio-La Negra and La Cigarra projects.

This work prepares the project for advancement in a stronger metals market. Meanwhile we remain focused on drilling Columba with the aim of defining a new high-grade resource there and will be reporting on results. The Company has also decided to proceed with a share consolidation at this time as detailed below, which the Board believes is in the best interest of shareholders. It has been an ongoing discussion point with various investors and shareholders encouraging us to proceed with the consolidation, which could lead to increased investor interest by raising the Company profile with a lower number of outstanding shares, a higher stock price and better position the Company to obtain financing to further advance its properties."