Mr. James McDonald reports

KOOTENAY SILVER ANNOUNCES INCREASE IN NON-BROKERED PRIVATE PLACEMENT TO $3.5 MILLION

Kootenay Silver Inc. has increased the size of its previously announced non-brokered private placement (as detailed in the company's news releases dated Feb. 1, 2024) from aggregate gross proceeds of up to $2.5-million to up to $3.5-million to the company, at a price of 75 cents per unit.

Each unit shall be composed of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of $1.10 for a period of 24 months from closing of the offering.

The net proceeds from the offering will be used for exploration activities, property commitments on the company's projects, working capital and general corporate purposes.

The offering is anticipated to close on or about the week of Feb. 16, 2024, or such later date as the company may determine. The closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange. The units to be issued under the offering will have a hold period of four months and one day from closing.

In connection with the offering, the company has appointed Research Capital Corp. as the exclusive finder, and the company will pay finder fees in cash and finder warrants.

About Kootenay Silver Inc.

Kootenay Silver is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre region of Mexico. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora state and Chihuahua state, Mexico, respectively.

We seek Safe Harbor.