KOOTENAY RETAINS SERVICES OF HANS SMIT P.GEO TO ASSIST IN DEVELOPMENT OF NEW LA NEGRA SILVER DISCOVERY IN SONORA, MEXICO

December 8, 2014

Kootenay Silver Inc. (TSX VENTURE: KTN.V) (“Kootenay”) is pleased to announce that it has retained the services of Mr. Hans Smit, P.Geo to assist in the upcoming development of the Company’s new La Negra Breccia Silver Discovery, situated approximately 6.5 kilometers north of Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico. The immediate objective is to quickly advance the La Negra discovery to a resource calculation on completion of a second drill program anticipated to begin early in the New Year.

States Kootenay President and CEO James McDonald "We are very pleased to welcome Mr. Hans Smit’s assistance to the Kootenay technical team. His experience is a key and timely development for the Company as we move towards a maiden NI 43-101 resource calculation on La Negra. Mr. Smit brings Kootenay a wealth of experience developing precious metal resources throughout the North American Cordilleran and we look forward to working with him in the upcoming development of our new La Negra Silver discovery in Sonora, Mexico.”

Hans Q. Smit, P.Geo.

Mr. Smit is a professional geologist with 30 years experience in all aspects of mineral exploration. Mr. Smit has managed major exploration programs in northern British Columbia, the Yukon Territory, Alaska and Sonora, Mexico. He specializes in guiding advanced exploration projects through resource estimations, economic evaluations and permitting. As former VP Exploration for Grayd Resource Corp., Mr. Smit played an instrumental role in the discovery and advancement of the La India project in Sonora, Mexico from a grassroots discovery to a project with a 1.2 million gold ounce resource and a positive Preliminary Economic Assessment. Grayd was subsequently bought in 2011 by Toronto-based Agnico-Eagle Mines Ltd. in a $275 million transaction and La India brought into commercial production in 2014.

La Negra Silver Discovery

The La Negra Beccia prospect is situated approx. 6.5 kms north of Kootenay’s flagship Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the ‘Promontorio Mineral Belt.’ The current Phase I drill program on La Negra follows a highly successful trenching and surface sampling program that confirmed widespread silver mineralization exists over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May 28th and June 5th, 2014 for more details). Recently released drill results at La Negra returned significant intervals and high grades of widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. (See news releases, ‘Drill Results’ Oct. 15, 2014, Nov. 26, 2014 and Dec 3, 2014 for more details).

To view full results of sampling and drill program visit: www.kootenaysilver.com

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.

ABOUT KOOTENAY

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay’s objective is to develop near term discoveries and long-term sustainable growth. Its 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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements:The information in this news release has been prepared as at December 7, 2014. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay’s expectations or any change in events, conditions or circumstances on which any such statement is based.

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.

This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

2014 number 20