Kootenay Gold Inc. Amends Warrant Expiry Date

November 16, 2011

Vancouver, B.C. - Kootenay Gold Inc. (TSX VENTURE: KTN.V) ("Kootenay") announces that it has, subject to regulatory approval, amended the expiry dates of an aggregate total of 5,574,000 unexercised share purchase warrants.

A total of 2,750,000 share purchase warrants expiring on February 28, 2012, which were issued on February 29, 2008 pursuant to the non-brokered unit private placement announced on January 29, 2008 have been extended to February 28, 2013. A total of 2,824,000 share purchase warrants expiring on December 18, 2011, which were issued on June 18, 2008 pursuant to the brokered unit private placement announced on May 26, 2008 have been extended to December 18, 2012.

Subject to Exchange approval, the original expiry date of the warrants will be extended for an additional twelve months with the exercise price per warrant remaining unchanged at $1.15. In all other respects, the terms of the warrants will remain unchanged and in full force and effect, including that the expiry date of the warrants can be accelerated to 30 days following the date on which Kootenay gives notice to the holders of the warrants that its common shares have closed for 10 consecutive trading days at a price of $1.38 or greater.


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.

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release
2011 number 20