Mr. James McDonald reports

KOOTENAY RESOURCES INC. ANNOUNCES PRIVATE PLACEMENT FINANCING AND CONDITIONAL TSXV LISTING APPROVAL

Kootenay Silver Inc.'s Kootenay Resources Inc., subject to financing, has received conditional TSX Venture Exchange listing approval subject to meeting minimum listing requirements. It is conducting a private placement of shares and special warrants to complete its listing requirements.

Upon receipt of final listing on the TSX-V, the company's shares will begin trading on the TSX-V with minimum funding of $482,000 to be raised. Certain funds from the special warrants, related to non-Canadian investors, will be held in escrow until the company raises the required minimum of $482,000 Canadian and receives listing approval.

The private placement will consist of a combination of non-flow-through and flow-through common shares totalling gross proceeds of $500,000. The financing will consist of a mix of shares and special warrants at a price of 10 cents per share and of flow-through shares at a price of 15 cents per share.

Proceeds received from the private placement will be used for the development of the company's Moyie anticline project, early-stage Nechako portfolio of gold-silver exploration projects and other resource properties (eligible for Canadian exploration expenses, which are flow-through mining expenditures) and general working capital requirements.

The securities to be issued under the private placement will be offered by way of private placement in each of the provinces of Canada, other than Quebec, and such other jurisdictions as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

In connection with the private placement, arm's-length finders will receive a cash fee in respect to their subscribers equal to 6.0 per cent of the gross proceeds.

Qualified persons

The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Kootenay by James McDonald, PGeo, president, chief executive officer and director for Kootenay, a qualified person.

About Kootenay Resources Inc.

Kootenay Resources is an exploration company actively engaged in the exploration and discovery mineral projects in British Columbia, Canada. The company was formed as a spinout of Kootenay Silver Inc. in which prospective Canadian assets were transferred to Kootenay Resources. The transaction was completed in October, 2021. Kootenay Silver currently holds around 5.4 million common shares of Kootenay Resources Inc.

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