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Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce the results of the final 10 drill holes from the 2017 drilling campaign completed by Pan American Silver Corp. (“Pan American Silver”) on the La Negra silver discovery. The definition drill program completed on La Negra is part of an option agreement between Kootenay and Pan American Silver that provides Kootenay with a series of work and cash commitments and a carried to production interest on La Negra and the Promontorio Mineral Belt located in Sonora State, Mexico.

Kootenay President and CEO James McDonald states, “We are pleased with the excellent grades and continuity encountered in the La Negra mineralized breccia with the infill drilling conducted in 2017. We are looking forward to the 2018 exploration program which is entering the third year of our agreement with Pan American Silver and will focus on testing additional targets.”

It is anticipated that the 2018 program conducted by Pan American Silver will focus on developing drill targets outside the La Negra discovery. Drilling is currently underway on one such target a few kilometers north of La Negra. Additional mapping and sampling is required on other target areas prior to drilling.

Drill highlights from LN 17-86 to LN 17-95 include:

• LN-86-17: 1,625 gpt silver over 1.05 meters within 136 gpt silver over 50.65 meters and a separate interval of 515 gpt silver over 14.55 meters within 247 gpt silver over 49.15 meters
• LN-87-17: 1,161 gpt silver over 5.15 meters within 273 gpt silver over 59.20 meters
• LN-88-17: 309 gpt silver over10.30 meters within 93 gpt silver over 56.05 meters
• LN-89-17: 106 gpt silver over 11.05 meters within 60 gpt silver over 11.05 meters
• LN-90-17: 79 gpt silver over 5.10 meters and a separate interval of 434 gpt over 7.20 meters within 79 gpt silver over 95.85 meters
• LN-91-17: Four separate intervals of: 271 gpt silver over 3.85 meters; 74 gpt silver over 22.50 meters; 71 gpt silver over 1.95 meters; and 237 gpt silver over 2.35 meters.

Click to view: Drill plan and cross sections

Note: all intervals are downhole. Holes are oriented approximately perpendicular to the mineralized trends, and downhole lengths may be slightly shorter than the stated interval.

Holes LN 86-17 to 91-17 and LN 05-17 are infill holes in the mineralized breccia with all intercepting positive results similar to previous drilling from the breccia. Holes LN 91 to 94 were step out holes ranging from 100 to 350 meters along strike. These holes did not intercept significant mineralization.

Pan American Silver began managing the exploration program in April 2016 and since that time has drilled approximately 10,900 metres in 56 holes, re-logged drill core, conducted geological mapping and re-interpretation, and completed 62 kilometers of magnetic ground surveys. Additionally, Pan American Silver has added additional concessions to the Promontorio mineral belt.

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 Silver 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 4 , 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.

2018 number 05