Mr. James McDonald reports

KOOTENAY SILVER ANNOUNCES CLOSING OF BOUGHT DEAL LIFE PRIVATE PLACEMENT FOR GROSS PROCEEDS OF C$18 MILLION

Kootenay Silver Inc. has closed its previously announced bought deal private placement for gross proceeds of $18,000,002.25, which includes the exercise in full of the overallotment option. Pursuant to offering, the company sold 8,000,001 common shares of the company at a price of $2.25 per offered share.

Red Cloud Securities Inc., as lead underwriter and sole bookrunner, and Research Capital Corp. acted as underwriters under the offering. As consideration for their services, the underwriters received aggregate cash fees of $1,080,000.14 and 480,000 non-transferable common share purchase warrants. Each broker warrant is exercisable to acquire one common share of the company at the offering price at any time on or before Feb. 10, 2028.

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

In accordance with National Instrument 45-106, Prospectus Exemptions, the offered shares were issued to Canadian purchasers pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The offered shares sold to purchasers resident in Canada under the listed issuer financing exemption are immediately freely tradeable under applicable Canadian securities legislation. The offered shares were also offered in the United States or to, or for the account or benefit of, U.S. persons, by way of private placement pursuant to the exemptions from the registration requirements provided for under the United States Securities Act of 1933, as amended, and in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document was required to be filed in such jurisdiction.

There is an amended and restated offering document related to the offering that can be accessed under the company's profile on SEDAR+ and on the company's website.

The closing of the offering remains subject to the final approval of the TSX Venture Exchange.

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.