March 2, 2012

Vancouver, B.C. - Kootenay Silver Inc. TSX.V: KTN ("Kootenay") announces the completion of the warrant exercise incentive program (the "Program"). A total of 2,860,000 outstanding unlisted warrants were exercised under the Program raising gross proceeds of $3,317,625.

Pursuant to the Program, Kootenay has issued an aggregate of 1,430,000 common share purchase warrants (the "Incentive Warrants") to the warrant holders who exercised their Warrants under the Program. Each Incentive Warrant entitles the holder to purchase one additional common share of Kootenay at a price of $1.50 per common share until February 28, 2014. The Incentive Warrants are subject to a four month hold period which expires on June 30, 2012.

The balance of the Warrants not exercised under the Program remain outstanding and continue to be exercisable for common shares of the Company on their current terms.

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.


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.. 2012 number 6


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