Mr. James McDonald reports

KOOTENAY SILVER FILES NI 43-101 TECHNICAL REPORT SUPPORTING POSITIVE PEA FOR THE LA CIGARRA SILVER PROJECT

Kootenay Silver Inc. has filed the independent National Instrument 43-101 technical report entitled "Preliminary Economic Assessment for the La Cigarra Silver Project, Hidalgo del Parral, Chihuahua State, Mexico," with an effective date of Jan. 15, 2026, supporting the positive preliminary economic assessment (PEA) for its wholly owned La Cigarra silver project in Chihuahua, Mexico. The report is available under the company's profile on SEDAR+.

The technical report supports the results previously announced by the company on June 15, 2026, and there are no material differences between the technical report and the information contained in that news release.

A strategic asset in one of Mexico's premier silver districts

Located approximately 26 kilometres from the city of Hidalgo del Parral in Chihuahua state, La Cigarra benefits from excellent infrastructure, year-round access, nearby electrical power, water availability and an experienced mining work force. The project occupies a favourable position within one of Mexico's most prolific historic silver districts, home to the long-producing Santa Barbara and San Francisco del Oro mining operations.

The company believes La Cigarra represents a rare combination of advanced technical work, positive economics and meaningful exploration upside, positioning it as one of the premier undeveloped silver development opportunities available to a junior exploration company.

James McDonald, president and chief executive officer of Kootenay Silver, commented: "The filing of the NI 43-101 technical report marks an important milestone in the advancement of La Cigarra and validates the significant technical work completed by our team and our consultants. The PEA demonstrates a technically robust project with attractive economics and rapid capital payback while highlighting the considerable exploration upside that remains across the property. Importantly, the current mine plan represents only part of the mineralized system we have identified to date. With over nine kilometres of prospective mineralized trend and numerous opportunities to expand the resource, we believe La Cigarra offers a compelling combination of development readiness and discovery potential. We look forward to continuing to advance the project while unlocking additional value through exploration and engineering optimization."

About the technical report

The NI 43-101 technical report, "Preliminary Economic Assessment for the La Cigarra Silver Project, Hidalgo del Parral, Chihuahua State, Mexico," has an effective date of Jan. 15, 2026, and was prepared by Sacre-Davey Engineering with contributions from Canenco Consulting Corp., AKF Mining Services Inc., Knight Piesold Consulting and SGS Geological Services. The report has been filed under the company's profile on SEDAR+ and is available on the company's website

Qualified person

The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101, Standards of Disclosure for Mineral Projects, and reviewed and approved on behalf of Kootenay by Dale Brittliffe, BSc, PGeol, vice-president, exploration, of Kootenay Silver, who is the company's nominated qualified person pursuant to NI 43-101. He has reviewed the scientific and technical information disclosed in this news release. Mr. Brittliffe is not independent of Kootenay Silver.

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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