Quality Silver Assets are Scarce
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Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to report results from an additional 5 drill holes from the high-grade Columba Property (the “Property”) located in Chihuahua State, Mexico. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign (the “Program”).

Kootenay President and CEO James McDonald stated: “These results show excellent continuity and grade along the F Vein for 700 meters of strike length and depths to 240 meters. Having established at least one well mineralized shoot within the F Vein over a substantial area we will now focus on testing other veins on the Property. Priority areas include the J-Z vein area where last year hole CDH-19-030 returned a 25.85 meter intercept grading 200 gpt silver and included highs of 982 gpt silver over 1.8 meters, 415 gpt silver over 11 meters and 721 gpt silver over 4 meters!”

Mineralization on the F Vein remains open along strike and to depth and continues to be a promising target for further investigation after other veins have been explored. To date the spacing of drill holes along the F Vein has varied from 50 meters to over 200 meters thus more drilling is required.Currently, sufficient drilling of the F Vein has been completed to establish a well mineralized shoot so drilling will move onto the other veins.

Holes CDH-20-052 and CDH-20-053 fill in a 140 meter gap between previous holes CDH-20-046, which reported 1585 gpt silver over 0.6 meters within 553 gpt silver over 2.9 meters, and CDH-19-035 with 494 gpt silver over 1.35 meters.

Highlights from the additional 5 holes include:

CDH-20-052

• 601 gpt silver over 1.23 meters within a wider intercept of 279 gpt silver over 4.08 meters and 199 gpt silver over 7.53 meters within the F Vein.

CDH-20-053

• 753 gpt Ag over 0.95 meters within 620 gpt silver over 2 meters, 496 gpt silver over 3 meters and 116 gpt silver over 34 meters within the F Vein.
• CDH-20-053 is about 53 meters down dip and 15 meters north of CDH-20-052

CDH-20-054

• 319 gpt silver over 1.8 meters within 158 gpt silver over 5 meters within the F Vein.
• CDH-20-054 is 20 meters south of CDH-19-035 and approximately 20 meters further down dip.

CDH-20-055

• Returned two lower grade intervals within the F Vein approximately 100 meters and 125 meters down dip of holes CDH-19-035 and CDH-20-054 respectively.

Hole CDH-20-056 was abandoned due to bad ground about 150 meters before reaching target depth.

Click to view the plan map, F Vein map and long section, and drill sections.

Detailed Drill Results – CDH-20-052 to CDH-20-055

This release brings the total holes of the Phase-II campaign drilled thus far in 2020 to 16; all of which have tested the F Vein with most returning multiple high-grade intercepts. A total of about 3200 meters of the announced 7000-meter program has been completed.

Drilling is ongoing and more results will be released once holes are completed and assays are received, compiled, and interpreted.

Prior to the work stoppage due to COVID-19 a total of 10 holes were completed. Results for the first 10 holes, previously released on May 19^th and May 26^th, 2020, have been provided again in the highlights below followed by a detailed table containing their full results:

Highlights of Holes CDH-20-042 to CDH-20-051 (news release May 19^th and 26th, 2020):

CDH-20-045

• 456 gpt silver over 1.5 meters within 2.5 meters of 350 gpt silver and 239 gpt silver over 4.3 meters in the F Vein.
• 974 gpt silver over 0.5 meters within 208 gpt silver over 3 meters in a footwall Vein.

CDH-20-046

• 1,585 gpt silver over 0.6 meters within 911 gpt silver over 1.4 meters and 553 gpt silver over 2.9 meters and 689 gpt silver over 0.5 meters all in the F Vein.

CDH-20-047

• 782 gpt silver over 1.05 meters within 400 gpt silver over 4.97 meters all within a wider interval of 15.65 meters averaging 166 gpt silver.

CDH-20-042

• Intercepted 111 gpt silver over 5.9 meters before entering an old mine working.

CDH-20-043

• Intercepted 105 gpt silver over 1 meter before entering an old mine working.
• Intercepted a footwall Vein grading 119 gpt silver over 5 meters.

CDH-20-048

• 259 gpt silver over 1.06 meters in the Hanging-wall structure.
• 197 gpt silver over 3.6 meters within 124 gpt silver over 7.0 meters in the F Vein structure.

CDH-20-049

• 2,010 gpt silver over 1.0 meter within 762 gpt silver over 2.8 meters in the Hanging-wall vein.
• 368 gpt silver over 0.65 meters within 68 gpt silver over 10.2 meters in the Hanging-wall structure.
• 484 gpt silver over 1.4 meters within 209 gpt silver over 4.4 meters in the F Vein structure.

CDH-20-050

• 486 gpt silver over 0.45 meters within 50 gpt silver over 38 meters in the F Vein structure.

CDH-20-051

• 865 gpt silver over 2.0 meters within 317 gpt silver over 6.0 meters in the Hanging-wall structure.
• 769 gpt silver over 1.1 meters and 317 gpt silver over 4.36 meters within 72 gpt silver over 36 meters in the F Vein structure.

Detailed Drill Results of Previously Released 2020 Holes CDH-20-042 to CDH-20-051

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 and approved on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.

Sampling and QA/QC at Columba

All technical information for the Columba exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken from core cut in half with a diamond saw under the direction of qualified geologists and engineers. Samples are then labeled, placed in plastic bags, sealed and with interval and sample numbers recorded. Samples are delivered by the Company 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. All drilling reported is HQ core and has been contracted to Globexplore Drilling from Hermosillo, Mexico.

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 junior 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 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 July 15, 2020. 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.

2020 number 13