Mr. James McDonald reports

KOOTENAY RESOURCES ANNOUNCES THE SLEEPER-MAGNIFICENT-KNAPP ("SMK") GOLD-SILVER EXPLORATION PROJECT IN CENTRAL BRITISH COLUMBIA

Kootenay Resources Inc. has introduced its 100-per-cent-owned Sleeper-Magnificent-Knapp (SMK) project, a large-scale, early stage exploration property with significant discovery potential for gold, silver and associated critical metals in central British Columbia. The project, located roughly 25 kilometres southwest of Fraser Lake, B.C., covers 36,234 hectares of prospective ground and forms part of the company's objective for the discovery of Tier 1 mineral deposits. The property is situated within the same mineral belt as other key projects in Kootenay's portfolio of high-quality early stage exploration properties.

Strategically positioned with road access, nearby power infrastructure and proximity to resource-friendly communities, the SMK property represents a compelling epithermal and porphyry exploration opportunity in one of Canada's most prospective yet underexplored mineral regions.

Kootenay continues to expand and define vein outcrops in two main mineralized trends at surface at SMK and is pursuing a dual target model. The vein systems, in conjunction with alteration zones mapped at surface, are interpreted as upper-level extents of an intermediate-sulphidation epithermal gold-silver system with porphyry copper-gold potential at depth.

The project boasts high grade surface results today including assays ranging from below detection up to 25.99 grams per tonne gold (sample MK10-389, B.C. assessment report No. 32330) and 455 grams per tonne silver (sample SK21-134, B.C. assessment report No. 40117). Sampling to date defines two strong multikilometre trends for follow-up.

Two major vein trends are identified by previous work, including:

1. Magnificent vein trend, five km by 2.2 km polymetallic corridor with extensive quartz veining, alteration and trench/drill-ready targets;
2. Sleeper vein trend, a northeast-trending structure with strong gold-silver-lead anomalies, coincident with geophysical trends.

The project is road accessible and only 25 kilometres from the company's exploration office at Fraser Lake.

"We're excited to formally introduce the SMK project," said Dale Brittliffe, PGeo, vice-president of exploration. "With significant surface results, large-scale untested structures, and proximity to infrastructure, SMK is preparing permit applications for trenching and first-pass drilling to unlock its discovery potential."

Kootenay Resources considers trenching and first-pass drilling essential to evaluate high-priority targets and assess potential porphyry feeder zones beneath the established epithermal system.

Additionally, the company is pleased to announce that it intends to complete on a best efforts basis, a non-brokered private placement for aggregate gross proceeds of up to $200,000. The private placement will consist of a combination of non-flow-through and flow-through common shares.

Under the private placement, the company will offer, non-flow-through common shares of units of the company at a price of six cents per unit and flow-through common shares of units of the company at a price of 7.5 cents per FT unit , raising aggregate combined gross proceeds of up to $200,000. Proceeds received from the private placement will be used for the development of the company's Moyie Anticline project, other resource properties and general working capital requirements.

Each unit shall comprise one common share of the company and one-common share purchase warrant of the company. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of 12 cents for a period of five years from the closing of the private placement.

Each FT unit shall comprise one common share of the company (an FT common share) share (as defined under the Income Tax Act (Canada) and of one non-flow-through common share purchase warrant of the company (an NFT warrant)). Each NFT warrant shall entitle the holder thereof to purchase one common share at an exercise price of 15 cents for a period of five years from the closing of the private placement.

Proceeds received from this private placement will be used for the development of the company's exploration projects and general working capital requirements.

The securities to be issued under the private placement will be offered by way of private placement in each of the provinces of Canada, other than Quebec, and such other jurisdictions as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

The private placement is anticipated to close on or before July 25, 2025, or as decided by the company and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. The common shares to be issued under the private placement will have a hold period of four months and one day from closing.

In connection with the private placement, arm's-length finders may receive a cash fee in respect to their subscribers equal to 6.0 per cent of the gross proceeds.

Furthermore, the company announces subject to TSX Venture Exchange approval the closing of its previously announced private placement (see news release dated Oct. 17, 2024) for aggregate gross proceeds of $57,626. An aggregate total of 624,281 common shares will be issued and consist of:

• 432,195 flow-through units (the FT units) at a price of 10 cents per FT unit for aggregate gross proceeds of $43,219.50. Each FT unit comprises one flow-through common share and one-half of one flow-through warrant (FT warrant) (as defined under the Income Tax Act (Canada)). Each FT warrant is exercisable at a price of 15 cents for a period of 18 months;
• 192,086 non-flow-through units (the NFT units) at a price of 7.5 cents per NFT unit for aggregate gross proceeds of $14,406.50. Each NFT unit comprises one non-flow-through common share of the company and one-half of one common share purchase warrant. Each warrant is exercisable at a price of 10 cents for a period of 18 months

Proceeds received will be used for the development of the company's Moyie Anticline project, other resource properties and general working capital requirements.

Background

Kootenay Resources' stated mission is the discovery of a Tier 1 deposit and as such focuses on those areas with demonstrated geologic potential for such deposits. The company is exploring two regions, in the southeastern portion of B.C. on its flagship Moyie Anticline property and in central B.C. with its generative program including several promising gold-silver-copper properties in the Nechako plateau of central British Columbia. Kootenay Resources welcomes partners for exploration projects and currently has one mineral property under option to Centerra Gold Inc., and three Nechako projects under option to fellow junior exploration company Rokmaster Resources Corp.

Qualified persons

The company's technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and reviewed and approved on behalf of Kootenay by Dale Brittliffe, PGeo, vice-president of exploration for Kootenay, a qualified person.

About Kootenay Resources Inc.

Kootenay is an exploration company actively engaged in the exploration and discovery mineral projects in British Columbia, Canada. The company was formed as a spinout of Kootenay Silver Inc. in which prospective Canadian assets were transferred to Kootenay Resources. The transaction was completed in October of 2021, Kootenay Silver currently holds 5.4 million common shares of Kootenay.

We seek Safe Harbor.