KOOTENAY IDENTIFIES SIGNIFICANT NEW GOLD TARGET AT NOGALERA ZONE ON LA CIGARRA SILVER PROJECT, MEXICO - SAMPLING HIGHLIGHTS INCLUDE 12.35 GPT GOLD, 179 G/T SILVER & 19.75% LEAD

February 7, 2018 Download PDF

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce the surface discovery of a new area of multi-gram gold and silver mineralization with high lead at its 100% owned La Cigarra silver project, located in Chihuahua State, Mexico. Click to view location map of new area relative to the resource and defined trends.

Gold mineralization has been traced by prospecting, mapping and sampling along mineralized structures within a broad area measuring 500 by 1000 meters. The gold trend is open on strike in both directions. Sampling returned numerous multi gram values of up to 12.35 gpt gold, 179 gpt silver and 19.75%lead along the 1000 meter long trend. Click to view sampling results along the 1000 meter strike length.

The southern portion of the trend is well defined by mapping, chip and grab sampling along a mineralized area that extends for over 400 meters of strike and a width of 100 meters. This area is comprised of parallel shear zones with anomalous mineralization over widths generally in the range of 2 to 20 meters. Click to view map of the sampling results along southern trend.

The gold mineralization sits along the southwestern extension of the previously reported Nogalera Zone which is defined by a large lead in soil anomaly with anomalous gold and silver in outcrop occurrences ranging from background to 10.8 gpt gold and 1060 gpt silver. Mapping will help determine if the newly recognized gold bearing structures extend into the Nogalera mineralization.

Follow up mapping, prospecting, hand trenching and chip sampling are underway to better define the mineralized structures in preparation for drilling.

Kootenay President & CEO, Jim McDonald states: “The consistent high gold values are new for the project where previously identified mineralization is silver dominant. This area represents an exciting new target for us and the first significant gold mineralization to be found on the project. We are actively and rapidly moving this new gold trend to drill stage with plans to be drilling it near the end of the first quarter.”

Rock Sampling Highlights > 0.1 gpt Gold

Area 1 – Click to view map of gold samples; Click to view map of silver samples

SAMPLE NUMBER

SAMPLE TYPE

LENGTH

Gold gpt

Silver gpt

Lead %

Zinc %

232221

Grab

N/A

10.85

179

7.78

1.32

232220

Grab

N/A

4.59

159

4.60

0.272

232226

Panel

0.6

4.24

80.6

4.30

2.74

232216

Grab

N/A

4.11

176

2.16

0.331

MK1411f

Float

N/A

1.615

51

19.75

0.005

232236

Grab

N/A

1.27

12.8

0.66

0.0913

232229

Panel

1.5

0.901

20.5

0.39

0.206

232230

Panel

1.6

0.851

35.2

0.96

0.125

232215

Panel

1.5

0.791

16.4

0.76

0.0159

T NOG-003

Channel

2.0

0.785

8

0.28

0.021

232223

Panel

1.5

0.781

141

5.08

0.332

232224

Panel

1.5

0.762

41

0.73

0.455

232214

Panel

1.5

0.652

3.15

0.04

0.0066

232225

Panel

1.5

0.623

6.67

0.94

0.751

230235

Panel

1.5

0.563

6.3

0.18

0.0613

232235

Grab

N/A

0.503

3.91

0.24

0.191

232228

Panel

1.5

0.487

25

0.70

0.192

MK1410f

Float

N/A

0.35

25

5.78

0.155

232283

Chip

1.5

0.299

22.5

0.07

0.0428

232231

Panel

2

0.257

8.82

0.24

0.563

232213

Panel

1.5

0.236

1.81

0.05

0.0224

232222

Panel

1.8

0.183

11.5

0.46

1.215

MK1409g

Grab

N/A

0.183

71

0.90

0.029

MK1408f

Float

N/A

0.129

5

0.36

0.186

Area 2 - Click to view map of gold samples; Click to view map of silver samples

SAMPLE NUMBER

SAMPLE TYPE

LENGTH

Gold gpt

Silver gpt

Lead %

Zinc %

FC2243d

Grab

N/A

12.35

80

5.380

0.699

FC2245ch

Channel

1.0

7.39

64

5.040

0.474

FC2244ch

Channel

1.00

5.41

89

7.130

0.225

230347

Chip - Panel

1.5

4.7

32.8

3.120

0.464

T NOG-001

Channel

2.1

4.63

89

5.790

0.464

230346

Chip - Panel

1.5

3.66

28.4

3.240

0.403

FC2247g

Grab

N/A

3.24

5

0.103

0.024

230345

Chip - Panel

1.5

2.2

46.4

1.285

0.351

FC2248g

Grab

N/A

1.68

34

1.565

0.016

FC2246ch

Channel

2.0

1.165

102

1.465

0.344

MK1415g

Grab

N/A

0.313

1

0.048

0.054

Geology & Sampling Discussion

The anomalous nature of the structures is indicated by the average of 118 samples taken from the 1000 meter long gold trend which averages 0.78 gpt gold, 23.1 gpt silver and 1.1 % lead including an aggregate length of 105 meters in chip samples. Click to view the 118 samples.

In area 1 and 2 the overall width of the mineralized trend is about 100 meters and the gold mineralization looks to be related to parallel shears zones within the 100 meters where individual zones appear to range from 5 to 20 meters in width.

The gold is associated with strongly faulted to sheared and argillically altered sediments with minor silicification and quartz veining. Manganese carbonate also occurs in the zone but seems to be associated with a separate zone of silver dominant mineralization.

Sampling and QA/QC

Surface samples reported herein are a combination of grab, chip and panel chip. All technical information for the La Cigarra exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.

Qualified Persons

The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay.

Neither the 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.

About Kootenay Silver Inc.

Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of two of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.

For additional information, please contact:

James McDonald, CEO and President at 403-880-6016

Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

or visit: www.kootenaysilver.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at February 6, 2018. 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.