Mr. James McDonald reports

KOOTENAY ANNOUNCES FIVE DRILL HOLES COMPLETED ON PROMONTORIO'S SILVER MINERALIZED LA NEGRA DIATREME PROSPECT

Kootenay Silver Inc. has completed and submitted for assaying the first five HQ diameter core holes of its phase I drill program on its La Negra diatreme breccia prospect. The La Negra diatreme breccia prospect is contained within the Promontorio mineral belt approximately 6.5 kilometres north of Kootenay's flagship Promontorio silver resource in Sonora, Mexico.

Preliminary visual inspection of drill core by Kootenay's technical team shows all five holes have encountered wide intervals of altered breccia, which is the same host rock as is seen across the mineralized surface.

States Kootenay president and chief executive officer James McDonald: "We are very pleased to complete the first tranche of drill holes on La Negra and look forward to receiving initial assay results. Based on our inspection of the initial core, we remain highly optimistic results from current drilling will parlay the success of our recent trenching and surface sampling program that returned widespread silver mineralization over a 100- to 200-metre by 500-metre area. Clearly, La Negra is an emerging target that exhibits several key characteristics with the potential to evolve into a significant near-surface silver discovery. It also serves as a strong complement to the underlying value of Kootenay's flagship Promontorio resource located 6.5 km to the north, and underscores the regional-scale potential of the other emerging targets contained within Promontorio's mineral belt."

Phase I drilling program on La Negra diatreme pipe

Drilling is currently being conducted in widely spaced fences along 400 to 500 metres of La Negra's length to provide information on the subsurface grade, continuity and geometry of the mineralized diatreme pipe. The program is contracted to be a minimum of 2,500 metres of core drilling with HQ diameter core. It is anticipated 15 to 20 holes will be drilled in the inaugural program.

Breccia intercepts are as follows:

• LN 14-1 (minus 45 degrees at 180 degrees azimuth) -- zero to 44 metres breccia, 44 to 95 metres (end of hole) altered andesite;
• LN 14-2 (minus 60 degrees at 180 degrees azimuth) -- zero to 54 metres breccia, 54 to 100 metres (end of hole) altered andesite;
• LN 14-3 (minus 90 degrees) -- zero to 144 metres (end of hole) breccia;
• LN 14-4 (minus 60 degrees at 360 degrees azimuth) -- zero to 115 metres breccia, 115 to 152 metres (end of hole) altered andesite;
• LN 14-5 (minus 45 at 360 degrees azimuth) -- zero to 90 metres breccia, 90 to 147 (end of hole) metres altered andesite.

Holes LN 14-1 to LN 14-5 are drilled to form a fence of holes from the same drill pad.

Kootenay's technical team reports the breccia's appear to be dominated by clast supported type and are strongly altered by very fine silica and clay with abundant very fine-grained tourmaline. It appears as if the contacts of the breccia are near vertical to steeply north dipping. The company cautions the foregoing information is from quick logging and thus preliminary in nature. As such, some observations of contacts, alteration and lithology, and interpretations thereof, may change as detailed logging is complete and new information is gained from additional holes.

An announcement on assay results will be made when received and compiled. It is estimated the initial holes will be announced in the first half of October.

Surface trenching and sampling program confirms widespread silver mineralization

An extensive trenching and surface sampling program previously conducted on La Negra from bedrock exposure shows silver mineralization is remarkably consistent throughout the breccia's exposed breadth and length (between 100 to 200 metres by 500 metres). The average of all samples taken on surface is 65 g/t silver from 50 three-metre chip samples in trenches, 19 two-metre square chip panels and 31 grab samples. (See news releases from May 28 and June 5, 2014, for more details.) Previous airborne geophysics was effective in mapping the southern contact of the breccia and indicates the breccia could be twice the aerial extent of the visible bedrock exposure.

Current NI 43-101-compliant silver resource

The current mineral estimate on Promontorio effective date March 31, 2013 (see May 14, 2013, news release), contains a combined measured and indicated silver resource of 92,428,000 silver equivalent ounces (39.9 million ounces Ag, 508,000 ounces Au, 394.8 million pounds Pb and 462.2M pounds Zn). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the inferred category (12.8 million ounces Ag, 147 ounces Au, 99.5 million pounds Pb and 109.1 million pounds Zn). Measured and indicated resources are contained in open pit resources of 44,504,000 tonnes grading an average of 64.32 g/t silver equivalent (27.77 g/t Ag, 0.35 g/t Au and 0.87 per cent Pb plus Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 g/t silver equivalent (22.89 g/t Ag, 0.28 g/t Au and 0.95 per cent Pb plus Zn). Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 g/t silver equivalent (24.95 g/t Ag, 0.28 g/t Au and 0.59 per cent Pb plus Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 g/t silver equivalent (26.57 g/t Ag, 0.37 g/t Au and 0.74 per cent Pb plus Zn).

The current NI 43-101 resource estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of Lakewood, Colo. (see May 14, 2013, news release), included gold assay results in the updated resource estimation. As a result of the addition of gold, the mineral resource is now contained in a single larger optimized whittle pit, as opposed to two individual smaller pits as reported in the Aug. 21, 2012, resource estimate. The decision to include gold in the resource estimation follows extensive metallurgical testing and technical analysis conducted by ALS Minerals of Kamloops, B.C., that confirmed up to 94.5-per-cent recovery of gold from pyrite concentrates from the Promontorio resource can be achieved using a postpressure oxidation treatment process.

Quality assurance/quality control (QA/QC)

Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis. A quality control program including blanks, standards and replicates is being used similar to that used on the Promontorio drill program. Geotechnical data such as recovery, RQD and density are being recorded also. All drilling has been with HQ core and is being done by BD Drilling from Guadalajara, Mexico. Further quality assurance and control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver website.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, PGeo (a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects). Mr. McDonald is a director of Kootenay.

We seek Safe Harbor.