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Kootenay announces continued high-grade results from 2016 drill program on La Negra operated by Pan American Silver RESULTS INCLUDE 529 GPT SILVER OVER 7.5 METERS WITHIN 194 GPT SILVER OVER 40.8 METERS

Drill Results

Kootenay announces continued high-grade results from 2016 drill program on La Negra operated by Pan American Silver

RESULTS INCLUDE 529 GPT SILVER OVER 7.5 METERS WITHIN 194 GPT SILVER OVER 40.8 METERS

VANCOUVER

,

April 3, 2017

/CNW/ -

Kootenay Silver Inc. (TSXV: KTN) (the "Company" or "Kootenay")

is pleased to announce drilling has returned more

high-grade silver intercepts from the remaining 6 holes of the 2016 drill program conducted and operated by Pan American Silver Corp.

("Pan American Silver")

on its La Negra silver discovery within the Promontorio project located in

Sonora, Mexico

. The definition drill program 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

Promontorio. Of the 6 drill holes reported in this release four were drilled into the La Negra Breccia with 2 into a target south of the breccia. Pan American Silver is

scheduled to recommence drilling in late June-early

July 2017

.

Kootenay President and CEO

James McDonald

states

, "We are very pleased with results from the final holes of our 2016 drilling program on La Negra with

Pan American Silver. The consistent confirmation of multiple zones of high-grade silver mineralization within a 600-meter strike length of the breccia, remaining

open at depth, supports further work on the Promontorio/La Negra project. Upcoming exploration and drilling by Pan American Silver will focus on defining the

potential size of the magmatic hydrothermal silver-lead breccia and testing additional targets."

Drill highlights include:

LN-67-16

returning 121 gpt silver over 47.1 meters including 582 gpt silver over 2.55 meters

LN-68-16

returning 194 gpt silver over 40.85 meters including 529 gpt silver over 7.5 meters and 90 gpt silver over 10.65 meters including 137 gpt silver over

5.55 meters

LN-69-16

returning 98 gpt silver over 59.25 meters including 378 gpt silver over 3.65 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.

Drill hole

From

To

Interval

Silver

gpt

Gold

gpt

Copper

ppm

Lead

ppm

Zinc

ppm

Breccia

LN-67-16

26.2

73.3

47.1

121

0.11

189

2630

59

LN Bx Principal

Incl.

37.3

50.35

13.05

216

0.18

93

1411

58

LN Bx Principal

incl.

37.3

38.8

1.5

458

0.39

91

1032

86

LN Bx Principal

Incl.

47.8

50.35

2.55

582

0.14

47

2113

31

LN Bx Principal

incl.

49.3

50.35

1.05

973

0.19

65

3012

34

LN Bx Principal

LN-68-16

1

41.85

40.85

194

0.06

172

4070

299

LN Bx Principal

Incl.

2.4

14.05

11.65

441

0.08

367

10318

426

LN Bx Principal

incl.

6.55

14.05

7.5

529

0.09

298

7446

312

LN Bx Principal

Incl.

6.55

8.05

1.5

784

0.08

384

19400

377

LN Bx Principal

incl.

12.55

14.05

1.5

1613

0.24

553

3765

290

LN Bx Principal

Incl.

28.7

30.2

1.5

772

0.12

106

1872

226

LN Bx Principal

91.5

102.15

10.65

90

0.09

421

8822

34

LN Bx Principal

Incl.

96.05

101.6

5.55

137

0.11

666

12645

35

LN Bx Principal

LN-69-16

5.1

64.35

59.25

98

0.04

71

1759

100

LN Bx Principal

Incl.

5.1

6.6

1.5

514

0.08

76

4950

79

LN Bx Principal

incl.

35.7

49.4

13.7

189

0.08

63

1506

65

LN Bx Principal

Incl.

45.75

49.4

3.65

378

0.13

88

2529

33

LN Bx Principal

incl.

48.1

49.4

1.3

602

0.18

112

2378

26

LN Bx Principal

LN-70-16

119.75

120.45

0.7

85

0.64

244

37300

729

LN Bx Principal

136.05

137.25

1.2

121

0.03

241

880

874

LN Bx Principal

254.7

256.25

1.55

68

0.02

193

132

112

LN Bx Inferior

Drill holes LN 71 and LN 72 drilled a target a few hundred meters south of the La Negra Breccia returned no significant results.

Pan American Silver 2016 Program

Pan American Silver 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 Silver initiated a 3,500-meter drilling program in

July 2016

with the objective of infilling the Kootenay

operated La Negra drill program with coverage to 50 meter centres and testing the along-strike and down dip extents, as well as following up on geophysical and

geological anomalies located elsewhere within the Promontorio concessions.

Pan American Silver reported that a series of deeper infill drill holes from the first 12 holes of the 2016 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 Pan American Silver extended the drill program by an additional 2000 meters.

Drilling on the subsequent 13 holes of the program returned consistent high-grade silver results at depth. (See Kootenay News release

February 15, 2017

). The

latest 4 holes mark the completion of the 2016 drill program on La Negra with an approximate total of 6800 meters of drilling and in 31 holes.

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 the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at

April 2, 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.

SOURCE

Kootenay Silver Inc.

To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/April2017/03/c6377.html

%SEDAR: 00016508E

For further information:

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

CO: Kootenay Silver Inc.

CNW 08:00e 03-APR-17