Quality Silver Assets are Scarce
.....We Have Several

INCLUDES 534 GPT AG OVER 8.7 METERS WITHIN 237 GPT AG OVER 32 METERS

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce drilling has returned a series of high-grade silver intercepts from the latest 13 holes of a multi-phase drill program being conducted and operated by Pan American Silver Corp. (“Pan American”) on its La Negra silver discovery in Sonora, Mexico. The definition drill program on La Negra is part of an earn-in option agreement between Kootenay and Pan American that provides Kootenay with a series of work and cash commitments and a carried to production interest on La Negra. All holes reported are infill and step out drilling down dip on the La Negra breccia.

Kootenay President and CEO, James McDonald states, “We are very pleased with results from the 13 holes of our current drill program on La Negra with Pan American. The confirmation of additional, multiple zones of high-grade silver mineralization within a 600 meter strike length of the breccia, remaining open at depth, further underscores the future development potential of La Negra’s contained silver resource. We are excited with the continued success at La Negra and look forward to receiving results from the remaining four holes of the program.”

Drill highlights include:

• LN-54-16 returning 77 gpt silver (“Ag”) over 30.95 meters including 341 gpt Ag over 3.75 meters
• LN-57-16 returning 149 gpt Ag over 44.15 meters including 449 gpt Ag over 9.15 meters and 1786 gpt Ag over 1.5 meters
• LN-58-16 returning 352 gpt Ag over 8.7 meters including 516 gpt Ag over 5.7 meters
• LN-59-16 returning 237 gpt Ag over 32.15 meters including 534 gpt Ag over 11.2 meters and 815 gpt Ag over 2.90 meters and 991 gpt Ag over 1.65 meters
• LN-61-16 returning 98 gpt Ag over 14.4 meters including 237 gpt Ag over 4.4 meters
• LN-65-16 returning 145 gpt Ag over 28.55 meters including 460 gpt Ag over 8.15 meters and 738 gpt Ag over 3.55 meters and 1208 gpt Ag over 0.6 meters

Click to view: drill plan and cross sections.

A summary of the infill drilling within the mineralized zone is provided in the table below:

There are currently four additional holes remaining from the 2016 Phase I program with Pan American which will be reported once assay results are received and compiled by the Company.

Results from Phase I Exploration and First 11 holes of Drilling Program:

Pan American began managing the exploration program in April 2016 and commenced re-logging drill core, geological mapping and re-interpretation, and completed 62 kilometers of magnetic ground surveys. Pan American initiated a 3,500 meters drilling program in July 2016 with the objective of infilling the La Negra drill coverage to 50 meter centres and testing along-strike and down dip extents as well as following up on geophysical and geological anomalies found elsewhere within the exploration concessions.

Pan American reported that a series of deeper infill drill holes from the first 11 holes of the current program confirmed high-grade results from previous drilling conducted by Kootenay on La Negra (See Kootenay News release October 25, 2016) as well as the presence of a second breccia zone further to the south, which currently remains open at depth. Based on the initial success of the Phase I program, in October 2016 Pan American increased the drill program by an additional 2,000 meters.

QA/QC

Samples were assayed by Inspectorate of Hermosillo, Mexico, using four acid digestion 35 element ICP analytical methods with fire assay for Au and Ag with atomic absorption finish and gravimetric finish, respectively. Pan American has followed a Quality Assurance/Quality Control program comprised of the insertion of blank material and certified standard samples at a frequency of one each for every 20 samples. There is no known drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in the table.

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 Kootenay by James McDonald, P. Geo, President, CEO & Director for Kootenay, a Qualified Person.

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.

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.

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 14, 2017. 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.

2017 number 05