Kootenay Silver Inc (KOOYD)

[basserdan]

KOOTENAY SILVER ANNOUNCES CONTINUED HIGH-GRADE RESULTS FROM 2016 DRILL PROGRAM ON LA NEGRA OPERATED BY PAN AMERICAN SILVER.

RESULTS INCLUDE 529 GPT SILVER OVER 7.5 METERS WITHIN 194 GPT SILVER OVER 40.8 METERS

April 3, 2017
Kootenay Silver Inc. (TSXV: KTN; OTC:KOOYF) (the “Company” or “Kootenay”) is pleased to announce drilling has returned more high-grade silver intercepts from the remaining 6 holes of the 2016 drill program conducted and operated by Pan American Silver Corp. (“Pan American Silver”) on its La Negra silver discovery within the Promontorio project located in Sonora, Mexico. The definition drill program on La Negra is part of an option agreement between Kootenay and Pan American Silver that provides Kootenay with a series of work and cash commitments and a carried to production interest on Promontorio. Of the 6 drill holes reported in this release four were drilled into the La Negra Breccia with 2 into a target south of the breccia. Pan American Silver is scheduled to recommence drilling in late June-early July 2017.

Kootenay President and CEO James McDonald states, “We are very pleased with results from the final holes of our 2016 drilling program on La Negra with Pan American Silver. The consistent confirmation of multiple zones of high-grade silver mineralization within a 600-meter strike length of the breccia, remaining open at depth, supports further work on the Promontorio/La Negra project. Upcoming exploration and drilling by Pan American Silver will focus on defining the potential size of the magmatic hydrothermal silver-lead breccia and testing additional targets.”

Drill highlights include:

* LN-67-16 returning 121 gpt silver over 47.1 meters including 582 gpt silver over 2.55 meters

* LN-68-16 returning 194 gpt silver over 40.85 meters including 529 gpt silver over 7.5 meters and 90 gpt silver over 10.65 meters including 137 gpt silver over 5.55 meters

* LN-69-16 returning 98 gpt silver over 59.25 meters including 378 gpt silver over 3.65 meters

Click to view Drill plan and cross sections ( http://tinyurl.com/myb8hz2 )

A summary of the infill drilling within the mineralized zone is provided in the table below.
(Click on link at bottom of page to view this table)

Pan American Silver 2016 Program

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

Pan American Silver reported that a series of deeper infill drill holes from the first 12 holes of the 2016 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 Pan American Silver extended the drill program by an additional 2000 meters.

Drilling on the subsequent 13 holes of the program returned consistent high-grade silver results at depth. (See Kootenay News release February 15, 2017). The latest 4 holes mark the completion of the 2016 drill program on La Negra with an approximate total of 6800 meters of drilling and in 31 holes.

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-continued-high-grade-results-from-2016-drill-program-on-la-negra-operated-by-pan-american-silver-results-include-529-gpt-silver-over-75-meters-within-194-gpt-silver-over-408-meters