JOINT VENTURE - Kootenay and Copper Creek To Commence Work On Santa Lucia Property

January 6, 2011

Vancouver, Canada- Kootenay Gold Inc. (TSX VENTURE: KTN.V) ("Kootenay") and Copper Creek Gold Corp. ("Copper Creek"; TSX VENTURE: CPV.V) are pleased to announce plans to commence the exploration of the Santa Lucia property in Sonora, Mexico in early February 2011.

The initial exploration will consist of trenching, sampling and detailed geological mapping with a focus on the silver rich La Fortuna zone. This area is the site of numerous high grade gold and silver samples taken from surface outcrop, just west of a number of old artisanal mining pits.

Drilling is planned for a 2200m program with approximately 10 holes, immediately following the sampling exploration. These holes will test the La Fortuna zone at depth, and will also penetrate untested resistivity anomalies along the 4km strike length of the La Fortuna North property.

These resistivity anomalies can be seen in both IP and CSAMT surveys done by Cominco Ltd.'s Mexican subsidiary in the 1990's. The anomalies underlie over 4km of surface gold mineralization, and parallel a regional range-bounding fault that is interpreted to control mineralization on the property. These resistivity anomalies remain largely untested by drilling.

In late November 2010 the Santa Lucia North area was visited by a joint team of Kootenay Gold and Copper Creek geologists and managers. Six grab samples were collected from the Santa Lucia North area by Kristian Whitehead, Copper Creek's consulting geologist, and were delivered to ALS Chemex Labs in North Vancouver, British Columbia for analysis. The samples verified the existence of strong gold-silver mineralization, with gold values ranging from 31 ppb Au to 1670 ppb Au and silver ranging from <5 ppm Ag to 64.9 ppm Ag. Analytical results are shown below.

Analytical results from Copper Creek samples

Sample

Area

Description

Au
(ppb)

Ag
(ppm)

As
(ppm)

Sb
(ppm)

H540836

La Fortuna

tuff w/drusy quartz & hematite

321

5.5

5

5

H540837

West pit

quartz vein

1670

44.5

12

5

H540838

La Fortuna

silicified rhyolite w/ quartz vein

1065

32.4

17

5

H540839

Federico zone

sil. rhyolite w/stockwork qtz veins

359

2.4

<5

5

H540840

East pit

rhyolite w/minor siliicification

449

64.9

6

<5

H540841

trench

mottled silicified rhyolite

31

3.0

45

7

Copper Creek has commissioned Robert G. Cuffney, P.Geo., of Reno, Nevada to produce an N1 43-101 compliant report on the property. This will be available to be viewed on the Copper Creek Gold Corp.'s web site, and on SEDAR, upon acceptance by the TSX Venture Exchange.

Copper Creek may earn an undivided 60% interest in the Santa Lucia Property from Kootenay Gold by spending $2,000,000 in exploration expenses and by making various cash and share payments to Kootenay over a four year period. This agreement remains subject to Exchange approval.

ABOUT KOOTENAY
Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company's flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long term sustainable growth. Kootenay's management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

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For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
www.kootenaysilver.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that 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 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. 2011 number 01