Kootenay Silver Inc (KTN)

[NYBob]

Kootenay Gold cancels joint bid for Sunshine mine

2010-04-12 11:33 ET - News Release

Mr. James McDonald reports:

KOOTENAY WITHDRAWS PARTICIPATION IN SUNSHINE BID; CONTINUES FOCUS ON PROMONTORIO SILVER PROJECT

Kootenay Gold Inc. (the "Company") (TSX.V: KTN ) announces the cancelation of its participation in the joint bid to acquire the Sunshine Mine pursuant to a bankruptcy auction to be held on April 21, 2010 (see news dated March 8, 2010) and its withdrawal from the syndicated brokered private placement announced on March 22, 2010.

Kootenay continues advancing the former producing Promontorio Silver Mine in Sonora State, Mexico. Significant intercepts include KP-25 with 386.64 meters of 46.15 g/t silver, 0.44 g/t gold & 1.54% lead/zinc -- including 97.67 meters of 100.4 g/t silver, 0.77 g/t gold & 3.24% lead/zinc. Intercepts encountered in KP 25 are associated with sulfides hosted in breccias and stockwork veining (see new Feb 5, 2009 news release). Since 2006, Kootenay has systematically advanced the Promontorio Silver Project with a 3D Induced Polarization Study, an Electromagnetic Airborne Study, Surface Sampling, Satellite Imagery, Trenching, Sampling, Mapping and more than 20,000 metres of Diamond Core Drilling. In addition, Kootenay has a portfolio of mineral projects in Sonora, Mexico and in British Columbia, Canada.

For additional information, please contact:

James McDonald, CEO and President at 403-238-6986 or

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

(www.kootenaygold.ca)

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note: The Securities and Exchange Commission's mining guidelines strictly prohibit information of this type in documents filed with the Securities and Exchange Commission. Mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

This news release may contain forward-looking statements including but not limited to comments regarding the completion of the Offering, the completion of the Acquisition, the filing of a final short form prospectus, the acceptance by regulatory authorities to the Acquisition, the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

http://www.kootenaygold.ca

http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C%3AKTN-1707774&symbol=KTN®ion=C