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

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce assay results from the final 17 core drill holes completed from its 2020 Phase II drill program, which totaled 9,114 meters over 43 holes, at its Columba high-grade silver project (the “Property”) located in Chihuahua State, Mexico.

Kootenay President & CEO, James McDonald, stated “We continue to be extremely pleased with the drill results from Columba. The 1,186 gpt silver intersection from hole CDH-20-082 intercepting the B Vein is the highest silver grade reported to date over widths greater than 4 meters. These results, combined with previous drilling, indicate that significant high-grade silver potential is being delineated in several areas within the Property. The B Vein is located 650 meters south of the old workings (F Vein) and can be traced on surface for 300 meters and remains open with significant opportunity to expand with further drilling.”

Highlights from Holes CDH-20-067 to CDH-20-084:

CDH-20-069 (J-Z Vein) intercepting hydrothermal breccias and quartz stockwork

• 58 gpt silver over 79.0 meters including:
  • 152 gpt silver over 10.1 meters, and
  • 325 gpt silver over 3.1 meters

CDH-20-070 (J-Z Vein) intercepting hydrothermal breccias and quartz stockwork over several intervals

• 170 gpt silver over 3.78 meters
• 40 gpt silver over 27.75 meters

CDH-20-076 (W Vein) intercepting in hydrothermal breccias and quartz barite vein

• 40 gpt silver over 94.06 meters including:
  • 272 gpt silver over 1.0 meter within 97 gpt silver over 7.0 meters

CDH-20-079 (D Vein)

• 179 gpt silver over 9.05 meters, including:
  • 290 gpt silver over 5.35 meters; and
  • 525 gpt silver over 1.58 meters; including
  • 689 gpt silver over 0.74 meters and 381 gpt silver over 0.84 meters

CDH-20-082 (B Vein)

• 112 gpt silver over 70.5 meters, including:
  • 691 gpt silver over 9.0 meters
  • 1186 gpt silver over 4.6 meters; including
    • 1,455 gpt silver over 1.55 meters and
    • 1,055 gpt silver over 1.5 meters and
    • 1,045 gpt silver over 1.55 meters

CDH-20-084 (B System)

• 47 gpt silver over 25 meters, including:
  • 126 gpt silver over 7 meters
  • 208 gpt silver over 2.45 meters

Click the following links to view: Plan Map and Cross Sections for holes CDH-20-67 to 084.

Drilling Discussion

Veins B and D

The highlight from these last set of 2020 drill holes are the high grades in the B and D Veins. The B Vein is showing excellent grade potential as good or better than the F Vein with values exceeding 1,186 gpt silver (up to 1,455 gpt silver) over 4.6 meters with 9 meters of 691 gpt silver in hole CDH-20-082. This hole shows the dramatic effect of elevation on grade. In comparison, hole CDH-19-036 drilled on the same section about 150 meters up dip and shallower than CDH-20-082, returned negligible silver. One hundred meters along strike from CDH-20-082, hole CDH-19-038 returned high grades of 301 gpt silver over 4.63 meters with 628 gpt silver over 1.5 meters indicating high grade continuity along strike between these two holes. Hole CDH-20-084 (although lower grade) extends the strike a further south for at least 175 meters. The zone remains open along strike to the south and down dip. With limited drilling it appears true widths are about 70% of drilled widths.

The D Vein (which dips south) also shows excellent grade potential with Hole CDH-20-079 returning 525 gpt silver over 1.58 meters within 5.35 meters of 290 gpt silver. This hole is about 50 meters deeper down dip of CDH-19-022 which contained 373 gpt silver over 1.5 meters within 6.25 meters of 244 gpt silver. These two holes indicate both continuity and grade potential. From just two holes it appears true width is 90% of drilled width. Hole CDH-20-080 tested the D Vein about 140 meters along strike and hit 131 gpt silver over 10.39 meters. While lower grade it is higher in elevation and therefore deeper drilling is required to test for the high grades in CDH-20-080 and CDH-19-022. The D Vein is open down and along strike to the southeast.

Detailed mapping of this area is underway to define the strike extent of these vein sets in preparation of the 2021 drill program expected to start at the beginning of February.

J-Z Vein Area

The J-Z Area is a complex zone comprising of at least 16 different veins with the primary veins striking northeast and southwest forming veins (including the E, O, J and Z veins) and veinlet stock works cutting a large hydrothermal breccia. The hydrothermal breccia trends northwest for about 500 meters, is generally 25 to 90 meters wide and has been followed down dip for at least 350 meters. It is open along strike and down dip. The breccia is low grade generally ranging from 20 to 100 gpt silver and contains significant high grades to 982 gpt silver. The high grades are also in breccias that are siliceous, hematitic and have quartz plus or minus barite veinlets.

The high-grade breccias appear to occur where the veins cut the large low grade breccia body. Drill testing in the 2021 program will test this hypothesis and if there is continuity of the high grade breccias along the vein-breccias where they cross-cut the large low-grade breccia.

Examples of the high-grade breccias include:

• CDH-19-030 grading 200 gpt silver over 25.85 meters with 415 gpt silver over 11.15 meters and 982 gpt silver over 1.9 meters;
• CDH-19-031 with 314 gpt silver over 3 meters with 776 gpt silver over 0.63 meters;
• CDH-20-060 grading 132 gpt silver over 64 meters including 361 gpt silver over 11 meters and 608 gpt silver over 5 meters;
• CDH-20-066 with 154 gpt silver over 9 meters including 773 gpt silver over 1.5 meters; and
• CDH-20-069 with 152 gpt silver over 10.1 meters with 325 gpt silver over 3.1 meters.

E Vein

Holes CDH-20-071 to 75,77,78 tested 400 meters of strike showing good vein continuity. Only moderate and low grades were encountered however most holes tested around the 1,800-meter elevation which is above the 1700-meter mark where most high grade starts to show up across the property. Thus, deeper drilling is required and will be done as part of the 2021 program.

The Company is currently designing the 2021 drill program that is slated to start in early February. Once approved the Company will provide details of the program such as number of holes and meters.

Detailed results for all drill holes completed to date at the Columba high grade silver project can be viewed by clicking the following link: Columba Drill Results

Detailed Drill Results – Holes CDH-20-067 to CDH-20-084

Notes: All widths are drilled widths. At this time, it is estimated true widths will range from 60 to 80% of drilled widths depending on dip of the vein and inclination of the hole. All silver composites rounded to the nearest whole number.

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

or visit: www.kootenaysilver.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at January 19, 2021. 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.