KOOTENAY ANNOUNCES PHASE II DRILLING ON LA NEGRA DISCOVERY EXTENDS SILVER MINERALIZATION A FURTHER 150 METERS IN DEPTH

April 30, 2015

Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay") is pleased to announce results from an additional seven holes of its Phase II drill program on its Promontorio La Negra Diatreme Silver discovery in Sonora, Mexico. The seven holes were designed to extend the known areas of mineralization along strike, down dip and to fill in large gaps. Results continue to affirm La Negra's potential for the delineation of a high-medium grade, open-pittable silver resource and for adding substantial additional silver resources at depth.

States Kootenay President and CEO James McDonald "We are very pleased with results from the current seven holes of our Phase II program. Drilling continues to return consistent intervals of high-grade silver, further underscoring La Negra's potential as a growing silver resource that clearly displays attributes with potential to evolve into a substantial low-cost, open-pit operation. Equally exciting, holes LN-34, 37 and 38-15 successfully confirm the excellent depth potential of the La Negra diatreme breccia, hitting mineralized breccia 250 to 300 meters vertically from surface, which is a full 100 to 150 meters deeper than previous drill holes."

Kootenay further reports ongoing ground exploration immediately around a 2-3 km radius of the La Negra Breccia has identified two high priority mineralized trends with clear underlying geologic controls. These have been named the 'La Negra Silver trend' and 'Vania'. Additional areas of silver and gold mineralization identified apart from these trends are currently being evaluated. Final results from the Phase II drill program along with further details of results from the expanded La Negra ground exploration program are expected mid May 2015.

Highlights include:

LN-32-15

  • 68.39 gpt Ag over 146 meters from surface including
  • 139.60 gpt Ag over 56 meters with
  • 217.32 gpt Ag over 28 meters and
  • 462.11 gpt Ag over 9 meters

LN-33-15

  • 63.12 gpt Ag over 138 meters from surface including
  • 152.62 gpt Ag over 27 meters with
  • 453.00 gpt Ag over 5 meters

LN-34-15

  • 149.27 gpt Ag over 11 meters including
  • 205.50 gpt Ag over 7 meters

LN-38-15

  • 113.15 gpt Ag over 67 meters including
  • 306.73 gpt Ag over 15 meters with
  • 850.60 gpt Ag over 5 meters and
  • 1772.50 gpt Ag over 2 meters

Details of the intercepts are in the following table:

Drill Hole From
(m)
To
(m)
Interval
(m)
Silver
(gpt)
Gold
(gpt)
Lead
%
Rock
Type
LN-32-15 -50°/50° Az 0 146 146 68.39 0.054 0.18 Breccia/Phyllic Andesite
Including 88 144 56 139.6 0.069 0.3 Breccia/Phyllic Andesite
Including 88 99 11 142 0.065 0.05 Breccia
Including 115 143 28 217.32 0.102 0.55 Breccia
Including 115 129 14 126.2 0.05 0.55 Breccia
Including 135 144 9 462.11 0.227 0.6 Breccia
Including 138 139 1 2790 0.771 0.63 Breccia
146m EOH
LN-33-15 -50°/300° Az 0 138 138 63.12 0.049 0.21 Breccia/Phyllic Andesite
Including 9 90 81 86.79 0.063 0.13 Breccia/Phyllic Andesite
Including 9 14 5 453 0.042 0.31 Breccia
Including 11 38 27 152.62 0.079 0.21 Breccia/Phyllic Andesite
Including 32 38 6 228 0.124 0.12 Breccia/Phyllic Andesite
Including 67 75 8 147.12 0.095 0.05 Breccia
Including 132 138 6 89.5 0.013 0.64 Breccia
167m EOH
LN-34-15 -45°/180° Az 91 96 5 162 0.078 0.94 Breccia/Phyllic Andesite
138 149 11 149.27 0.053 0.82 Breccia
142 149 7 205.5 0.063 1.07 Breccia
178 208 30 53.6 0.108 0.24 Breccia
Including 199 208 9 99.33 0.104 0.34 Breccia
294m EOH
LN-35-15 No Significant Results
LN-36-15 -45°/200° Az 19 40 21 40.71 0.138 0.12 Breccia
Including 19 28 9 68.11 0.303 0.21 Breccia
Including 19 25 6 82.5 0.349 0.3 Breccia
90m EOH
LN-37-15 -45°/180° Az 164 172 8 96.12 0.076 0.18 Breccia
208 233 25 51.48 0.037 0.64 Breccia
Including 215 233 18 69.33 0.049 0.85 Breccia
Including 216 229 13 77.15 0.058 1.02 Breccia
288m EOH
LN-38-15 -50°/240° Az 83 150 67 113.15 0.054 0.75 Breccia/Phyllic Andesite
Including 83 98 15 306.73 0.154 1.93 Phyllic Andesite/Stockwork
Including 92 97 5 850.6 0.36 4.24 Phyllic Andesite/Stockwork
Including 94 96 2 1772.5 0.664 6.52 Phyllic Andesite/Stockwork
Including 141 149 8 160.37 0.084 1.2 Breccia
197 227 30 101.86 0.117 0.42 Breccia
Including 197 205 8 134 0.163 0.88 Breccia
Including 213 227 14 130.42 0.116 0.28 Breccia
Including 224 227 3 373.6 0.18 0.25 Breccia
293 296 3 177 0.084 3.87 Breccia
351m EOH

To view a drill plan outlining the location of the La Negra drilling visit: La Negra Drill Plan Map. To view results from Phase I drilling visit: La Negra Phase I Drilling Results.

It is noteworthy holes LN-34, 37 and 38-15 extend mineralized breccia to 250 to 300 meters vertically below the surface exposure confirming the depth potential of the La Negra Breccia pipe. One of the deepest intercepts to date grading 373 gpt Ag over 3 meters within 30 meters of 101 gpt Ag in LN-38-15 indicates grade potential also extends to depth. Also noteworthy is LN-36-15 the easternmost intercept returned stronger than usual gold contents.

The intercept in LN-38-15 with 15 meters of 306 gpt Ag including 850 gpt over 5 meters and 1772 gpt over 2 meters sits roughly 40 meters north of the high grade in LN-21-14.

La Negra is a strong and explosive diatreme breccia event as evidenced by the strong tourmaline-sericite-quartz alteration throughout the matrix and dominant sericite alteration of clasts and textures and variety of clasts. Clasts are polymictic including instrusive and extrusive fragments, mineralized fragments and possible basement quartzite fragments indicating deep roots to the system

La Negra Silver Discovery

The La Negra Breccia prospect is situated approx. 6.5kms 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 Phase II drill program on La Negra follows a successful Phase I drill program, which returned significant and consistent intervals of high grade, widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. Highlights included 200 meters of 156 gpt Ag bottoming in 492 gpt Ag over 17 meters above which there is 6 meters of 1337 gpt Ag, 141 gpt Ag over 50 meters, including 212 gpt Ag over 28 meters and 323 gpt Ag over 15 meters. (See news releases, 'Drill Results' October 15th, November 26th, December 3rd, 2014 and March 31, 2015 for more details). The Phase I drill program was led by a successful trenching and surface sampling program that confirmed extensive silver mineralization 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).

To View Full Results of Sampling and drill Program Visit: www.kootenaysilver.com

QA/QC

Core is being detailed logged and sampled with half the core being bagged, tagged, catalogued, sealed and sent to an accredited assay lab for analysis. A quality control program including blanks, standards and replicates is being used similar to that used on the Phase I and Promontorio drill program. Geotechnical data such as recovery, RQD and density are being recorded also. Drilling has been diamond drill HQ sized core and is being done by B.D Drilling Mexico, S.A. de C.V from Guadalajara, Mexico. Further Quality Assurance and Control procedures and details on assays procedures and laboratories used are disclosed on the Kootenay Silver Inc. website.

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 April 29, 2015. 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

2015 number 5