Kootenay Silver Inc (KOOYD)

[basserdan]

KOOTENAY SILVER ANNOUNCES HIGH-GRADE SILVER INTERCEPTS FROM DRILL PROGRAM ON LA NEGRA OPERATED BY PAN AMERICAN SILVER CORP.

February 15, 2017

INCLUDES 534 GPT AG OVER 8.7 METERS WITHIN 237 GPT AG OVER 32 METERS

Kootenay Silver Inc. (TSXV: KTN; OTC:KOOYF) (the “Company” or “Kootenay”) is pleased to announce drilling has returned a series of high-grade silver intercepts from the latest 13 holes of a multi-phase drill program being conducted and operated by Pan American Silver Corp. (“Pan American”) on its La Negra silver discovery in Sonora, Mexico. The definition drill program on La Negra is part of an earn-in option agreement between Kootenay and Pan American that provides Kootenay with a series of work and cash commitments and a carried to production interest on La Negra. All holes reported are infill and step out drilling down dip on the La Negra breccia.

Kootenay President and CEO, James McDonald states, “We are very pleased with results from the 13 holes of our current drill program on La Negra with Pan American. The confirmation of additional, multiple zones of high-grade silver mineralization within a 600 meter strike length of the breccia, remaining open at depth, further underscores the future development potential of La Negra’s contained silver resource. We are excited with the continued success at La Negra and look forward to receiving results from the remaining four holes of the program.”

Drill highlights include:

* LN-54-16 returning 77 gpt silver (“Ag”) over 30.95 meters including 341 gpt Ag over 3.75 meters

* LN-57-16 returning 149 gpt Ag over 44.15 meters including 449 gpt Ag over 9.15 meters and 1786 gpt Ag over 1.5 meters

* LN-58-16 returning 352 gpt Ag over 8.7 meters including 516 gpt Ag over 5.7 meters

* LN-59-16 returning 237 gpt Ag over 32.15 meters including 534 gpt Ag over 11.2 meters and 815 gpt Ag over 2.90 meters and 991 gpt Ag over 1.65 meters

* LN-61-16 returning 98 gpt Ag over 14.4 meters including 237 gpt Ag over 4.4 meters

* LN-65-16 returning 145 gpt Ag over 28.55 meters including 460 gpt Ag over 8.15 meters and 738 gpt Ag over 3.55 meters and 1208 gpt Ag over 0.6 meters

Click to view: drill plan and cross sections. http://tinyurl.com/z65x3vo

A summary of the infill drilling within the mineralized zone is provided in the table below:

(Click on link below to view the infill drilling table)

There are currently four additional holes remaining from the 2016 Phase I program with Pan American which will be reported once assay results are received and compiled by the Company.

Results from Phase I Exploration and First 11 holes of Drilling Program:

Pan American began managing the exploration program in April 2016 and commenced re-logging drill core, geological mapping and re-interpretation, and completed 62 kilometers of magnetic ground surveys. Pan American initiated a 3,500 meters drilling program in July 2016 with the objective of infilling the La Negra drill coverage to 50 meter centres and testing along-strike and down dip extents as well as following up on geophysical and geological anomalies found elsewhere within the exploration concessions.

Pan American reported that a series of deeper infill drill holes from the first 11 holes of the current program confirmed high-grade results from previous drilling conducted by Kootenay on La Negra (See Kootenay News release October 25, 2016 ) as well as the presence of a second breccia zone further to the south, which currently remains open at depth. Based on the initial success of the Phase I program, in October 2016 Pan American increased the drill program by an additional 2,000 meters.

QA/QC

Samples were assayed by Inspectorate of Hermosillo, Mexico , using four acid digestion 35 element ICP analytical methods with fire assay for Au and Ag with atomic absorption finish and gravimetric finish, respectively. Pan American has followed a Quality Assurance/Quality Control program comprised of the insertion of blank material and certified standard samples at a frequency of one each for every 20 samples. There is no known drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in the table.

Qualified Persons

The Kootenay 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 on behalf Kootenay by James McDonald , P. Geo, President, CEO & Director for Kootenay, a Qualified Person.

About Kootenay Silver Inc.

Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada . Supported by one of the largest 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 two of its priority silver projects located in prolific mining districts in Sonora , State and Chihuahua, State, Mexico , respectively.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For additional information, please contact:

James McDonald, CEO and President at 403-880-6016

Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

or visit: http://www.kootenaysilver.com

http://www.kootenaysilver.com/news/kootenay/2017/kootenay-announces-high-grade-silver-intercepts-from-drill-program-on-la-negra-operated-by-pan-american-silver-corp