SILVERBUGS (SILVER)

[basserdan]

KOOTENAY REPORTS HIGH GRADE SILVER INTERCEPTS INCLUDING 601 GPT OVER 1.23 METERS WITHIN 279 GPT OVER 4.08 METERS & 753 GPT OVER 0.95 METERS WITHIN 620 GPT OVER 2 METERS AT COLUMBA PROJECT, MEXICO

July 16, 2020

Kootenay Silver Inc. (TSXV: KTN; OTC: KOOYF) (the “Company” or “Kootenay”) is pleased to report results from an additional 5 drill holes from the high-grade Columba Property (the “Property”) located in Chihuahua State, Mexico. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign (the “Program”).

Kootenay President and CEO James McDonald stated: “These results show excellent continuity and grade along the F Vein for 700 meters of strike length and depths to 240 meters. Having established at least one well mineralized shoot within the F Vein over a substantial area we will now focus on testing other veins on the Property. Priority areas include the J-Z vein area where last year hole CDH-19-030 returned a 25.85 meter intercept grading 200 gpt silver and included highs of 982 gpt silver over 1.8 meters, 415 gpt silver over 11 meters and 721 gpt silver over 4 meters!”

Mineralization on the F Vein remains open along strike and to depth and continues to be a promising target for further investigation after other veins have been explored. To date the spacing of drill holes along the F Vein has varied from 50 meters to over 200 meters thus more drilling is required.Currently, sufficient drilling of the F Vein has been completed to establish a well mineralized shoot so drilling will move onto the other veins.

Holes CDH-20-052 and CDH-20-053 fill in a 140 meter gap between previous holes CDH-20-046, which reported 1585 gpt silver over 0.6 meters within 553 gpt silver over 2.9 meters, and CDH-19-035 with 494 gpt silver over 1.35 meters.

Highlights from the additional 5 holes include:

CDH-20-052
* 601 gpt silver over 1.23 meters within a wider intercept of 279 gpt silver over 4.08 meters and 199 gpt silver over 7.53 meters within the F Vein.

CDH-20-053
* 753 gpt Ag over 0.95 meters within 620 gpt silver over 2 meters, 496 gpt silver over 3 meters and 116 gpt silver over 34 meters within the F Vein.
* CDH-20-053 is about 53 meters down dip and 15 meters north of CDH-20-052

CDH-20-054
* 319 gpt silver over 1.8 meters within 158 gpt silver over 5 meters within the F Vein.
* CDH-20-054 is 20 meters south of CDH-19-035 and approximately 20 meters further down dip.

CDH-20-055
* Returned two lower grade intervals within the F Vein approximately 100 meters and 125 meters down dip of holes CDH-19-035 and CDH-20-054 respectively.

Hole CDH-20-056 was abandoned due to bad ground about 150 meters before reaching target depth.

Click to view the plan map, https://tinyurl.com/y95up9q8

F Vein map, https://tinyurl.com/ycrhr6e9

and long section, https://tinyurl.com/yavhjk2d

and drill sections, https://tinyurl.com/yd8rafy6

This release brings the total holes of the Phase-II campaign drilled thus far in 2020 to 16; all of which have tested the F Vein with most returning multiple high-grade intercepts. A total of about 3200 meters of the announced 7000-meter program has been completed.

Drilling is ongoing and more results will be released once holes are completed and assays are received, compiled, and interpreted.

Prior to the work stoppage due to COVID-19 a total of 10 holes were completed. Results for the first 10 holes, previously released on May 19th and May 26th, 2020, have been provided again in the highlights below followed by a detailed table containing their full results:

Highlights of Holes CDH-20-042 to CDH-20-051 (news release May 19th and 26th, 2020):
(Click on the link at bottom of page to view the highlights)

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

Sampling and QA/QC at Columba
All technical information for the Columba exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken from core cut in half with a diamond saw under the direction of qualified geologists and engineers. Samples are then labeled, placed in plastic bags, sealed and with interval and sample numbers recorded. Samples are delivered by the Company 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. All drilling reported is HQ core and has been contracted to Globexplore Drilling from Hermosillo, Mexico.

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 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.

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: https://www.kootenaysilver.com

https://www.kootenaysilver.com/news/kootenay/2020/kootenay-reports-high-grade-silver-intercepts-including-601-gpt-over-123-meters-within-279-gpt-over-408-meters-and-753-gpt-over-095-meters-within-620-gpt-over-2-meters-at-columba-project-mexico