Mr. James McDonald reports

KOOTENAY SILVER CLOSES BROKERED PUBLIC OFFERING FOR GROSS PROCEEDS OF C$10.35 MILLION

Kootenay Silver Inc. has completed its previously announced and upsized best efforts public offering for gross proceeds of $10.35-million from the sale of 9,241,071 units of the company at a price of $1.12 per unit. The completed offering includes the exercise in full of the agents' (as defined herein) overallotment option for the sale of 1,205,357 units for proceeds of $1.35-million.

Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to purchase one common share of the company at a price of $1.68 at any time on or before April 25, 2026.

The offering was conducted by Red Cloud Securities Inc., acting as lead agent and sole bookrunner, and Research Capital Corp. In connection with the offering, the company paid the agents a cash commission of $591,000 and issued to the agents 527,678 common share purchase warrants. Each broker warrant entitles the holder thereof to acquire one common share at a price of $1.12 per common share at any time on or before April 25, 2026. The company also paid aggregate cash finders' fees of $28,380.24 to certain arm's-length finders in connection with units purchased by certain president's list purchasers.

The offering was completed pursuant to a prospectus supplement of the company filed in all of the provinces of Canada and dated April 17, 2024, that supplemented the short form base shelf prospectus of the company dated March 27, 2024. The offering remains subject to the final approval of the TSX Venture Exchange.

The net proceeds raised under the offering will be used for the advancement of the company's Columba Silver project in Mexico, as well as for general working capital and corporate purposes.

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.