Mr. James McDonald reports

KOOTENAY SILVER CLOSES FINAL TRANCHE OF OVERSUBSCRIBED $3.7 MILLION PRIVATE PLACEMENT

Kootenay Silver Inc. has closed the second and final tranche of its previously announced (see news releases dated Feb. 1, 5 and 16, 2024) non-brokered private placement of units of the company, at a price of 75 cents per unit for aggregate gross proceeds of $237,525. The company received total aggregate gross proceeds of $3,720,587 from the offering.

Each unit comprises one common share of the company and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share at a price of $1.10 per warrant share. An aggregate total of 4,960,782 common shares and 2,480,391 warrants were issued under 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 subject to the final acceptance of the TSX Venture Exchange.

All securities issued in connection with the offering are subject to a Canadian securities law resale restriction period expiring on June 17, 2024.

In connection with the closing of the final tranche of the offering, the company paid a cash finders' fee of $1,200 to an arm's-length finders. For disclosure relating to finder's fees paid in connection with the first tranche of the offering, as well as to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special transactions).

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.

We seek Safe Harbor.