Mr. James McDonald reports

KOOTENAY SILVER FILES FINAL BASE SHELF PROSPECTUS

Kootenay Silver Inc. has obtained a receipt for a final short form base shelf prospectus with the securities regulators in each province and territory of Canada.

This filing allows the company and/or selling securityholders to make offerings of common shares (including by way of an at-the-market distribution in accordance with applicable securities laws), warrants, subscription receipts, units, debt securities or any combination thereof for a maximum amount of $40-million during the 25-month period over which the base shelf prospectus is effective.

The company has filed this base shelf prospectus to have greater financial flexibility going forward, but has no immediate plans to issue any securities under it at this time, and may never proceed with any such issuance. Should the company and/or selling securityholders decide to offer securities during the 25-month effective period, the specific terms, including the use of proceeds, will be set forth in a prospectus supplement to the final base shelf prospectus, which will be filed with the applicable Canadian securities regulatory authorities.

A copy of the short form base shelf prospectus can be found under the company's profile on SEDAR+.

About Kootenay Silver Inc.

Kootenay 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.