PROMONTORIO - Kootenay Hits 18 Meters of 254 gpt Silver Eqv Within 89 Meters of 84 gpt Silver Eqv (Includes 120 gpt Silver and 3.1% Pb +Zn)

April 25, 2012

Vancouver, British Columbia: Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from an additional 10 holes from its current 25,000 meter drill program on its Promontorio Silver Project in Sonora, Mexico. The Company reports the two-phase 35,000 meter in-fill drill and resource definition program, comprised of 25,000 meters of core drilling and 10,000 meters of RC drilling is now complete. Work on an independent NI 43-101 resource update to incorporate results from drilling is underway.

States Kootenay CEO James McDonald "The high-grade results achieved from step-out drilling in the Northeast Zone is further testimony to the success of our multi-phase drill program. Since confirming our initial NI 43-101 silver resource in 2010, we established one continuous zone of silver mineralization from the Pit (Discovery) Zone through the Southwest Zone. This zone remains open to the east, west and to depth. We continue to encounter high-grade silver intercepts over widespread areas of silver mineralization in the Northeast Zone, some 700 meters outside of the current NI 43-101 resource. We expect these developments will play a critical factor in sharply boosting the size of our existing silver resource as we prepare for our updated independent NI 43-101 resource study."

Silver Hosted in Large Diatreme Complex
The recent definitive recognition that Promontorio silver mineralization is hosted in a large diatreme complex has significant geologic implication, as these types of systems can typically be very large in size and result in discovery of numerous deposits. Examples in Mexico include the Pitarrilla Silver-Lead-Zinc deposits in Durango and the Peñasquito Silver-Gold-Lead-Zinc mine located in the northeast of the State of Zacatecas in north-central Mexico.

Mineralization Remains Open on Strike and Down Dip

At present, silver mineralization remains open in both strike directions and down dip within Promontorio's Diatreme complex, between the Pit, Southwest Extension and Northeast Zones. The Company reports it has identified a host of new prospective targets within the Diatreme complex, that require further drill testing. Accordingly, the Company reports plans are underway to conduct a large follow up drill program after the release of the NI 43-101 resource update.

Table of the full results follows:

Hole ID Target

From

To

Interval

*AgEq (Ag,Pb,Zn)

Ag

Pb

Zn

Pb+Zn

(m)

(m)

(m)

(gpt)

(gpt)

(%)

(%)

(%)

DH-111-12 NE Zone

6

8

2

73

9

1.43

0.01

1.44

DH-111-12 NE Zone

172

174

2

261

86

0.97

3.19

4.15

DH-111-12 NE Zone

181

182

1

186

119

0.59

0.99

1.58

DH-112-12 Pit SW Extension

33

36

3

283

218

0.67

0.84

1.51

DH-112-12 Pit SW Extension

263

269

6

26

10

0.15

0.23

0.38

DH-113-12 NE Zone

121

122

1

99

89

0.1

0.13

0.23

DH-114-12 Pit SW Extension

88

91

3

64

53

0.06

0.19

0.24

DH-115-12 NE of Pit

123

135

12

43

31

0.13

0.15

0.28

including NE of Pit

123

126

3

112

77

0.44

0.37

0.81

DH-115-12 NE of Pit

263

264

1

151

73

0.77

1.07

1.84

DH-115-12 NE of Pit

273

275

2

95

35

0.59

0.81

1.4

DH-115-12 NE of Pit

374

379

5

37

30

0.05

0.11

0.16

DH-116-12 NE Zone

284

373

89

84

41

0.61

0.41

1.01

including NE Zone

294

312

18

254

120

1.96

1.14

3.1

including NE Zone

310

312

2

579

272

4.27

2.84

7.11

DH-117-12 NE of Pit

29

33

4

102

32

0.79

0.85

1.63

DH-117-12 NE of Pit

151

165

14

113

34

0.74

1.1

1.84

including NE of Pit

163

165

2

357

87

2.07

4.29

6.36

DH-117-12 NE of Pit

201

209

8

31

14

0.16

0.24

0.41

DH-118-12 NE of Pit

101

103

2

135

94

0.32

0.65

0.96

DH-118-12 NE of Pit

259

269

10

158

99

0.7

0.67

1.38

including NE of Pit

267

269

2

345

218

1.33

1.65

2.97

DH-119-12 NE Zone

127

129

2

79

11

0.68

0.9

1.58

DH-119-12 NE Zone

220

222

2

59

58

0.02

0.01

0.03

DH-119-12 NE Zone

254

256

2

70

26

0.5

0.53

1.03

DH-119-12 NE Zone

271

287

16

34

12

0.22

0.29

0.51

DH-119-12 NE Zone

331

363

32

44

18

0.32

0.28

0.6

including NE Zone

352

360

8

69

32

0.41

0.44

0.85

DH-120-12 NE of Pit

162

171

9

100

35

0.66

0.86

1.52

including NE of Pit

162

166

4

188

65

1.23

1.66

2.89

*Assuming 100% Metallurgical Recovery
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag dollars/oz 15
Zn dollars/lb 0.91
Pb dollars/lb 0.97

North East Zone
DH 116

  • Eastern most intercept to date
  • May be up dip extension of mineralization 110 and 232 meters deeper in KP 39

DH 111

  • Up dip of DH 74 and 75, 35 to 108 meters respectively

DH 113

  • Up dip of DH 85, 86 and 66

DH 119

  • 50 meters down dip of DH 69
  • Shows zone is open to depth

NE Pit Extension
DH 115

  • 35 meters down dip of PC 16
  • shows potential opening of mineralization to the north

DH 117

  • On section with DH 77, PC 48 and KP 32

DH 118

  • 83 meters up dip of PC 18 intercept.

DH 120

  • 123 meters up dip of DH 109

Southwest Extension
DH 112

  • Up dip of DH 106
  • Testing south edge of diatreme breccia

DH 114

  • Testing south edge of diatreme breccia

The recently completed 25,000 meter in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.

The foregoing technical disclosure in this release 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.

ABOUT KOOTENAY
Kootenay Silver 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. 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. 2012 number 8