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KOOTENAY SILVER IDENTIFIES SIGNIFICANT NEW GOLD TARGET AT NOGALERA ZONE ON LA CIGARRA SILVER PROJECT, MEXICO - SAMPLING HIGHLIGHTS INCLUDE 12.35 GPT GOLD, 179 G/T SILVER & 19.75% LEAD

February 7, 2018

Kootenay Silver Inc. (TSXV: KTN; OTC: KOOYF) (the “Company” or “Kootenay”) is pleased to announce the surface discovery of a new area of multi-gram gold and silver mineralization with high lead at its 100% owned La Cigarra silver project, located in Chihuahua State, Mexico. Click here to view location map of new area relative to the resource and defined trends: ( https://tinyurl.com/y9vz8dv9 )

Gold mineralization has been traced by prospecting, mapping and sampling along mineralized structures within a broad area measuring 500 by 1000 meters. The gold trend is open on strike in both directions. Sampling returned numerous multi gram values of up to 12.35 gpt gold, 179 gpt silver and 19.75%lead along the 1000 meter long trend. Click here to view sampling results along the 1000 meter strike length: ( https://tinyurl.com/yccsr9jc )

The southern portion of the trend is well defined by mapping, chip and grab sampling along a mineralized area that extends for over 400 meters of strike and a width of 100 meters. This area is comprised of parallel shear zones with anomalous mineralization over widths generally in the range of 2 to 20 meters. Click here to view map of the sampling results along southern trend: ( https://tinyurl.com/ybgazp8v )

The gold mineralization sits along the southwestern extension of the previously reported Nogalera Zone which is defined by a large lead in soil anomaly with anomalous gold and silver in outcrop occurrences ranging from background to 10.8 gpt gold and 1060 gpt silver. Mapping will help determine if the newly recognized gold bearing structures extend into the Nogalera mineralization.

Follow up mapping, prospecting, hand trenching and chip sampling are underway to better define the mineralized structures in preparation for drilling.

Kootenay President & CEO, Jim McDonald states: "The consistent high gold values are new for the project where previously identified mineralization is silver dominant. This area represents an exciting new target for us and the first significant gold mineralization to be found on the project. We are actively and rapidly moving this new gold trend to drill stage with plans to be drilling it near the end of the first quarter.”

Rock Sampling Highlights > 0.1 gpt Gold

Area 1 –
Click here to view map of gold samples: ( https://tinyurl.com/y9xqe5p8 )
Click here to view map of silver samples: ( https://tinyurl.com/ydchhrje )

Area 2 -
Click here to view map of gold samples: ( https://tinyurl.com/y8l5labb )
Click here to view map of silver samples: ( https://tinyurl.com/yaa6amr2 )

Geology & Sampling Discussion

The anomalous nature of the structures is indicated by the average of 118 samples taken from the 1000 meter long gold trend which averages 0.78 gpt gold, 23.1 gpt silver and 1.1 % lead including an aggregate length of 105 meters in chip samples. Click here to view the 118 samples: ( https://tinyurl.com/y6u6jd67 )

In area 1 and 2 the overall width of the mineralized trend is about 100 meters and the gold mineralization looks to be related to parallel shears zones within the 100 meters where individual zones appear to range from 5 to 20 meters in width.

The gold is associated with strongly faulted to sheared and argillically altered sediments with minor silicification and quartz veining. Manganese carbonate also occurs in the zone but seems to be associated with a separate zone of silver dominant mineralization.

Sampling and QA/QC

Surface samples reported herein are a combination of grab, chip and panel chip. All technical information for the La Cigarra exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.

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 of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay.

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.

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.

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/2018/kootenay-identifies-significant-new-gold-target-at-nogalera-zone-on-la-cigarra-silver-project-mexico-sampling-highlights-include-1235-gpt-gold-179-gt-silver-and-1975-lead