Mr. James McDonald reports

KOOTENAY HITS MULTIPLE HIGH GRADE INTERCEPTS ON LA NEGRA INCLUDING 156 GPT SILVER OVER 200 METERS, 442 GPT SILVER OVER 50 METERS AND 1337 GPT SILVER OVER 6 METERS

Kootenay Silver Inc. has released results of 16 additional drill holes from its phase I drill program on its new La Negra breccia silver discovery, situated approximately 6.5 kilometres north of Kootenay's flagship Promontorio silver resource in Sonora, Mexico. To date, a total of 25 holes have been drilled and completed in the inaugural discovery drill program on La Negra. Results from the final two holes of the program are pending and are expected to be released in the near future.

States Kootenay president and chief executive officer, James McDonald: "We are extremely pleased with assay results from the current 16 holes of the program. La Negra is rapidly evolving into an exciting new silver discovery that is ideally situated and continues to yield multiple high-grade results. The mineralization is outcropping on a hilltop and drill results show both consistency of mineralization and demonstrated potential for continued high grades, as shown in holes such as LN 21-14 that returned 1,337 gpt silver over six metres. Combined, these factors indicate strong potential for developing a significant low-cost silver operation."

Highlights include:

• 200 metres from surface of 156 grams per tonne silver in LN 21-14, including the bottom 50 metres grading 442 grams per tonne silver. This hole bottomed in 492 grams per tonne over 17 metres;
• Six metres of 1,337 grams per tonne silver in LN 21-14, the highest-grade interval to date;
• 34 metres from surface of 265 grams per tonne silver in LN 22-14 with 18 metres of 467 grams per tonne silver;
• 30 metres from surface of 250 grams per tonne silver in LN 23-14 with 13 metres of 459 grams per tonne silver;
• 33 metres from surface of 179 grams per tonne silver with 11 metres of 412 grams per tonne silver in LN 14-14;
• 49 metres from 13-metre depth of 92 grams per tonne silver with 34 metres of 251 grams per tonne silver in LN 8-14;
• 140 metres from surface of 61 grams per tonne silver with 47 metres of 79 grams per tonne silver and eight metres of 355 grams per tonne silver in LN 13-14.

                     DETAILS OF THE INTERCEPTS 

                              Inter-
                                val
Drill hole      From (m) To (m)  (m)    Silver (g/t) Gold (ppb) Lead %

LN-08-14             13     62   49           91.89      15.14    0.26
Including            30     41   11          251.00      34.54    0.15
Including            53     62    9           59.70       8.55    0.53
137 m EOH
LN-09-14              9     37   28           60.00      38.19    0.32
Including             9     23   14           64.57      44.00    0.39
105 m EOH
LN-10-14              5     40   35           87.08      37.34    0.51
Including            10     35   25          116.56      45.48    0.60
Including            14     35   21          135.52      53.00    0.65
                     70     78    8           37.25       5.25    0.24
                    157    163    6           38.83      63.00    0.27
191 m EOH
LN-11-14              6     11    5           56.33       9.66    0.33
                     27     29    2           32.50       2.50    0.01
131 m EOH
LN-12-14             13     28   15           29.76       8.88    0.44
Including            17     28   11           37.33       9.94    0.47
117 m EOH
LN-13-14              0    140  140           61.43      47.75    0.38
Including            24     71   47           79.00      52.00    0.31
Including            12     19    7           95.57      49.85    0.22
Including            24     34   10           83.33      50.00    0.10
Including            54     64   10          136.50      57.40    0.73
Including            66     71    5          120.20      13.20    0.74
Including           112    120    8          355.16     118.30    2.97
Including           132    140    8           52.75      89.37    0.19
183.5 m EOH
LN-14-14              0     33   33          179.65      33.21    0.33
Including            13     24   11          412.11      61.77    0.24
Including            26     30    4          181.00      55.25    0.72
                     48     60   12           31.50       8.18    0.13
92 m EOH
LN-15-14  77 m EOH   No significant results                           
LN-16-14  60 m EOH   No significant results                           
LN-17-14  51 m EOH   No significant results                           
LN-18-14  156 m EOH  No significant results                           
LN-19-14             70     82   12          289.58      39.66    1.42
Including            74     82    8          421.37      50.50    1.93
193 m EOH
LN-20-14             51     61   10           33.70      29.85    0.40
                     97    133   36           79.05      64.92    0.24
Including           105    133   28           99.35      88.57    0.24
Including           111    133   22          107.66     100.00    0.16
192 m EOH
LN-21-14             0     200  200          156.47     102.67    0.18
Including            41     57   16          114.31       9.03    0.21
Including           119    128    9          392.11     218.44    0.15
Including           150    158    8          258.37     155.37    0.07
Including           164    169    5          476.20     294.20    0.14
Including           150    200   50          420.34     182.91    0.23
Including           174    180    6        1,337.66     475.00    0.28
Including           183    200   17          492.30     128.23    0.50
200 m EOH
LN-22-14              0     34   34          265.31     114.37    0.75
Including            16     34   18          467.77     200.97    1.11
82 m EOH
LN-23-14              0     30   30          239.92      53.13    0.41
Including            17     30   13          459.76      89.65    0.59
Including            17     23    6          899.50     160.50    1.15
Including            18     19    1        3,040.00     426.00    4.53
78 m EOH

These results highlight the importance of the La Negra discovery and the potential for finding and developing additional high grades. Drilling has tested and encountered breccia and stockwork mineralization along a strike length of 400 metres to vertical depths of over 190 metres. Due to faulting and possibly the nature of the breccia contact itself the width of the breccia body is undetermined at this time. Thus far minimum drilled widths are varying from about 60 to over 100 metres within a broader 200-by-500-metre area of breccia outcrop exposures. The breccia is cut by two northwest-trending faults across which the dip of the breccia changes from near vertical dips to moderate southerly dips. This is evidenced by holes LN 11, 12, 14, 18, 19 and 20, which were drilled through the breccia into the footwall or directly within the footwall thus missing the bulk of the breccia body. The last hole LN 25-14 (assays pending) drilled to the north confirms a southerly dip encountering 60 metres of breccia from surface followed by about 50 metres of stockwork.

Holes LN 15 to 18 were drilled at the western edge of the breccia and seem to define the western extent of the main breccia body. However outcropping breccia does occur about another 50 metres farther west of these holes so a western extension or a separate breccia body is implied.

Breccia characteristics indicate the La Negra breccia is a in the vent facies of a diatreme. Diatreme breccias have extensive depth potential in the order of hundreds of metres. The La Negra breccia also appears to have a steep northeast plunge to the system.

Current phase I drill program

Drilling in the phase I program was conducted in widely spaced fences along 400 of 500 metres of La Negra's length to provide information on the subsurface grade, continuity and geometry of the mineralized breccia system. Current holes were broadly spaced as single holes or fences of holes from the same platforms in 115- to 75-metre spacings along strike. Extensive zones of breccia and stockwork were encountered along the strike length and dips seem to vary from steep northerly dips to moderate southerly dips. The phase I drill program included approximately 3,100 metres of core drilling. A total of 25 HQ diameter core holes were drilled and completed.

La Negra silver discovery

The La Negra breccia prospect is situated approximately 6.5 kilometres north of Kootenay's flagship Promontorio silver resource in Sonora, Mexico, and is contained within a 25-by-15-kilometre mineralized corridor, the Promontorio mineral belt. The current phase I drill program on La Negra follows a highly successful trenching and surface sampling program that confirmed widespread silver mineralization exists over a large 100-to-200-metre-by-500-metre area on surface. (See news releases from May 28 and June 5, 2014, for more details.) Recently, each of the first seven holes of its current phase I drill program on La Negra returned significant intervals and high grades of widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. (See news release dated Oct. 15, 2014, for more details.)

Quality assurance/quality control

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. Sample lengths are one metre in breccia or stockwork zones and two metres in other zones. 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 chief executive officer, 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.