Mr. James McDonald reports

KOOTENAY SILVER ESTABLISHES "AT-THE-MARKET" EQUITY PROGRAM

Kootenay Silver Inc. has established an at-the-market (ATM) equity distribution program. The ATM program allows Kootenay to issue and sell, at its discretion, common shares in the capital of Kootenay that would have the aggregate sales amount of up to $5-million, to the public, from time to time, through Research Capital Corp., acting as agent. All common shares sold under the ATM program will be sold at the prevailing market price at the time of the sale, directly through the TSX Venture Exchange, or any other recognized marketplace upon which the common shares are listed, quoted or otherwise traded in Canada. Kootenay currently intends to use the net proceeds from the ATM program, to the extent raised, for the advancement of the Columba silver project and for general corporate purposes.

Distribution of common shares under the ATM program will be made pursuant to the terms of an equity distribution agreement dated July 4, 2024, entered into between Kootenay and the agent.

The ATM program will be effective until the earlier of: (i) the issuance and sale of all of the common shares issuable pursuant to the ATM program; and (ii) April 27, 2026, unless terminated prior to such date by Kootenay or the agent. As common shares sold in the ATM program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of distribution. Pursuant to the terms of the equity distribution agreement, the company will compensate the agent for its services in acting as agent in sale of the common shares pursuant to the ATM offering in cash in an amount equal to 2.5 per cent of the gross proceeds from sales of the common shares.

The offering under the ATM program is qualified by a prospectus supplement dated July 4, 2024, to Kootenay's final short form base shelf prospectus filed in all of the provinces and territories of Canada, dated March 27, 2024. Copies of the equity distribution agreement, the prospectus supplement and the base shelf prospectus may be obtained on request, without charge, from the corporate secretary of Kootenay Silver, at Suite 1125, 595 Howe St., Vancouver, B.C., Canada, V6C 2T5 (telephone at 604-601-5650), and are available on 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.

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