Kootenay Announces Mr. Jon Morda Appointed to Board of Directors

December 12, 2011

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce the appointment of Mr. Jon Morda, CA to the Company's Board of Directors. Mr. Morda brings Kootenay over 20 years of experience in the mining industry, having served as Chief Financial Officer for several mineral exploration and gold producing companies. As a senior executive, Mr. Morda is highly adept in all areas of strategic corporate planning, operations, budgeting, accounting and taxation functions.

States Kootenay President and CEO James McDonald "We are very pleased to welcome Jon Morda to the Kootenay Board. Mr. Morda is a high-caliber mining executive that brings a unique skill-set to our Board, having previously served as a senior officer, providing leadership and guidance from the start-up phase of operations, through to commercial production. We look forward to Mr. Morda's valued contributions as we continue to advance and develop our Promontorio Silver Project in Sonora, Mexico."

From 2004 to 2011, Mr. Morda served as Chief Financial Officer of Toronto-based Alamos Gold, Inc., serving in a leadership capacity in the financing, construction and subsequent growth from exploration to production of the Mulatos mine in Mexico. During his tenure with Alamos, Mr. Morda was instrumental in helping transition Alamos Gold from an early-stage developer with only 2 employees, to a highly successful intermediate gold producer, with a work force of over 500 people.

Mr. Morda began his career in the mining sector in 1986 as Supervisor, Taxation with Dome Mines Ltd. and has been associated with mining exploration and development companies active in Mexico since 1995. Over the course of his accomplished career, Mr. Morda has served as Chief Financial Officer of HMZ Metals Inc., Chief Financial Officer and Vice President, Finance of Marathon Pgm Corp., Chief Financial Officer of Minefinders Corp. Ltd., Chief Financial Officer and Vice President, Finance of Geomaque Exploration Ltd., and as Manager, Tax of Lac Minerals Ltd.

Mr. Morda holds a Bachelor of Arts degree from the University of Toronto and has been a member of the Institute of Chartered Accountants of Ontario since 1980.

Kootenay has issued 200,000 incentive stock options to Mr. Morda under the Company's stock option plan and are exercisable for a period of five years at a price of $1.20.

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
or visit: www.kootenaysilver.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. 2011 number 22