Kootenay Announces 2017 Drill and Exploration Program to Commence ON LA Negra Silver Discovery IN Sonora, Mexico Operated BY Pan American Silver Corp

March 2, 2017

KOOTENAY ANNOUNCES 2017 DRILL AND EXPLORATION PROGRAM TO

COMMENCE ON LA NEGRA SILVER DISCOVERY IN SONORA, MEXICO

OPERATED BY PAN AMERICAN SILVER CORP

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “ Kootenay”) is pleased to announce plans are

underway to proceed with the 2017 exploration program being conducted and operated by Pan American Silver

Corp on its La Negra silver discovery in Sonora, Mexico. The program is part of an 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.

The 2017 program will focus on defining the potential size of the La Negra magmatic hydrothermal silver-lead

breccia. The current program budget is US$2.0 million and will entail approximately 6500 meters of diamond

drilling, geologic mapping and reconnaissance work to define additional prospective targets proximal to La Negra

within the Promontorio project. Drilling is scheduled to start late in the second quarter.

States Kootenay President and CEO James McDonald “We are very pleased to launch with the 2017 drill and

exploration program on the La Negra silver discovery. We look forward to this next phase of work in particular to

the drill results from the La Negra breccia that in 2016 returned multiple intercepts of high -grade silver

mineralization within a 600-meter strike length of the breccia, remaining open at depth.”

Further details will be reported by Kootenay once Pan American confirm the upcoming exploration and drill

program has been finalized and a drilling contractor has been engaged.

There are currently 4 additional holes to report from the 2016 Phase I program with Pan American Silver that will

be reported once assay results are received and compiled by the Company.

Results from Phase I Exploration and Drilling Program on La Negra:

Pan American began managing the exploration program in April 2016 and commenced re -logging drill core,

geological mapping and re -interpretation, and completed 62 km of magnetic ground surveys. Pan American

initiated a 3,500 m drilling program in July 2016 with the objective of infilling the La Negra drill coverage to 50-

meter center’s and testing the along -strike and down dip extents as well as following up on geophysical and

geological anomalies elsewhere within the exploration concessions.

Based on Pan American’s work Kootenay 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 (See Kootenay News release October

25, 2016). Based on the initial success of the Phase I program, in October 2016 Pan American extended the drill

program by an additional 3,300 meters.

Results from the most recent 13 holes of the Phase I drill program on La Negra support previous results and look

to have defined the strike extent of mineralization with the breccia, remaining open at depth.

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.

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 March 1, 2017. Certain statements in this news release, referred to herein as

"forward-looking statements", constitute "forward -looking statements" under the provisions of Canadian provincial sec urities 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 im plied 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 und ertaking 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 circ umstances 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 fi led with the SEC.

U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This n ews

release may contain forward -looking statements including but not limited to comments regarding the timing and content of upcomi ng 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 re gulations, 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 ca utioned 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 07