Milestone At Promontorio Silver Project

VANCOUVER, BC - Kootenay Silver Inc. reported that an updated resource estimate prepared by SRK Consulting for the Promontorio Silver Project supports recovery of gold. The open pit mineral resources for the Promontorio Project are comprised of an estimated 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent ("AgEq") classified as Measured and Indicated Mineral Resources, with an additional 14,564,000 tonnes grading an average of 51.95 gpt AgEq classified as Inferred Mineral Resources.

Underground mineral resources are approximately 215,000 tonnes grading an average of 56.96 gpt AgEq classified as Measured and Indicated Mineral Resources, with an additional 1,265,000 tonnes grading an average of 61.17 gpt AgEq classified as Inferred Mineral Resources. This resource is stated above a 45.00 gpt AgEq cut-off grade to reflect the higher mining costs expected to be associated with underground production.

The updated Measured and Indicated Resource contains an estimated 92,035,000 oz AgEq with another 24,326,000 oz AgEq categorized as Inferred, summarized in Additional metallurgical test work has allowed for the inclusion of Au in the mineral resources, which has a significant impact on the AgEq grades and relative ounces. The estimated Measured and Indicated gold resources contained within the mineralized diatreme system total 508,000 ounces with an additional 155,000 ounces Inferred.

Kootenay President and CEO James McDonald, said, "The Company is extremely pleased with the findings of the resource estimate and proud to be approaching the 100 Million ounces, silver equivalent milestone. Two key factors contributed to the success of the updated resource estimate. First, the important addition of the gold content to the resource has added significantly to the resource value. Secondly, resulting from the addition of gold, the resource is now contained in a single larger optimized Whittle Pit, as opposed to two individual smaller pits reported in the August 21, 2012 resource estimate. We look forward to providing a further resource update at the conclusion of our current drill and resource expansion program."