Mr. James McDonald reports

KOOTENAY SILVER ANNOUNCES CLOSING OF $20 MILLION BOUGHT DEAL PUBLIC OFFERING, INCLUDING FULL EXERCISE OF THE OVER-ALLOTMENT OPTION

Kootenay Silver Inc. has completed its previously announced and upsized bought deal public offering 19,057,800 units of the company, including the full exercise of the overallotment option, at a price of $1.05 per unit for gross proceeds to the company of $20,010,690.

The offering was led by Research Capital Corp. as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Red Cloud Securities Inc.

Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share of the company at a price of $1.58 at any time on or before June 27, 2028.

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.

The offering was completed pursuant to a prospectus supplement of the company filed in all of the provinces of Canada and dated June 19, 2025, which 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.

In connection with the offering, the company paid the underwriters a cash commission of $1,108,271.43 and issued to the underwriters 1,055,497 broker warrants. In addition, the agents received an advisory fee of $62,000 plus tax and 59,400 advisory broker warrants on the same terms as the broker warrants. Each broker warrant entitles the holder thereof to acquire one common share at a price of $1.05 per common share at any time on or before June 27, 2028. The company also paid aggregate cash finders' fees of $29,999.97 to certain arm's-length finders in connection with Units purchased by certain president's list purchasers.

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.

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