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Kootenay Resumes Drilling at Mexico Promontorio Silver Project

Kootenay Silver Inc. is pleased to announce the resumption of drilling on its flagship Promontorio Silver Project in Sonora, Mexico. Two drill rigs have been deployed and are currently operating on site. The Company will conduct a minimum of 5,000 meters of drilling in the current phase, as part of its ongoing, multi-phase, 2013 drill and resource expansion program on Promontorio.

Core drilling will target a series of high-grade silver intercepts recently identified within a new breccia zone of silver mineralization situated between the Pit and NE Zones (See June 4, 2013 news release).

Current NI 43-101 Compliant Silver Resource

The current mineral estimate on Promontorio effective date March 31, 2013 (See May 14, 2013 news release) was conducted by SRK Consulting Inc. (U.S.) of Lakewood, Colorado and contains a combined Measured and Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb, 109.1M lb's Zn). Measured and Indicated resources are contained in open pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).

QA/QC

Drilling will be HQ sized diamond drill core and has been contracted to B.D Drilling Mexico, S.A. de C.V of Guadalajara, Mexico. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.

Subject to the approval of the TSX Venture Exchange, Kootenay has issued an aggregate total of 1,968,000 incentive stock options, which are exercisable for a period of five years at an exercise price of $0.66 to directors, officers and consultants of the company.

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