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Kootenay Announces Drilling ON New LA Cigarra Discovery Extends Silver Mineralization 140 Meters to the Northeast

Drill Results

August 30, 2017

KOOTENAY ANNOUNCES DRILLING ON NEW LA CIGARRA DISCOVERY

EXTENDS SILVER MINERALIZATION 140 METERS TO THE NORTHEAST

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

from hole CC-17-28 drilled to test the extension of a large new mineralized zone recently discovered in

the Venadas target area on its La Cigarra Silver project in Chihuahua State, Mexico.

The Company reports assays from hole CC-17-28 returned a series of good grading silver intercepts,

extending the new discovery zone 140 meters northeast of original discovery hole CC-17-26.

The weighted average intervals are:

Hole CC-17-28

• 168.64 gpt silver over 7.0 meters, within

• 121.25 gpt silver over 12.0 meters and

• 92.88 gpt silver over 24.20 meters

All intervals are core length as the strike, dip and shape of the zone and thus true widths are unknown

at this time.

The strength and intensity of brecciation, veining and alteration observed in hole CC-17-28 is consistent

with discovery hole CC-17-26, which bottomed in veining. Textures are indicative of a variant of an

epithermal hydrothermal breccia complex. The new discovery zone is contained within the project’s

Venadas target area 1000 meters south of La Cigarra’s established NI 43-101 resource. To view a set of

maps click on the following link: Las Venadas Plan and Cross Sections Maps.

Kootenay President and CEO James McDonald states , “The grades and characteristics of

mineralization encountered 140 meters away from hole CC-17-26 further supports the large-scale nature

and potential continuity of the new zone. We are looking forward to further drill testing of this exciting

new discovery.”

The results represent only the upper part of the zone, as the hole was unable to drill further due to

encountering faulted rock. Accordingly, it is believed the larger and stronger part of the system remained

untested by the hole. In hole CC-17-26 more than 250 meters of veining, vein breccia was encountered

right to the bottom of the hole with the stronger part of the zone toward the bottom of the intercept.

The intercept is 140 meters northeast of CC-17-26 and 62 meters deeper establishing some meaningful

extent to the zone in just the second hole.

New Discovery Zone Proximity:

The new discovery zone is contained within La Cigarra’s Venadas target, which comprises a broad area

of alteration and mineralization containing various different structures with vein -breccia, veins and

veinlets, over an area measuring 500 by 800 meters. It is part of a trend of distinct mineralized structures,

extending from La Borracha to the southward through the La Cigarra deposit (which includes the San

Gregorio and Las Carolinas zones) into Las Venadas and further into Soledad and Los Chinos, over a

distance of 6 kilometers.

Upcoming Drilling and Development:

Drilling will now move back to site CC-17-26, which bottomed in mineralization after drilling over 250

meters of veining, vein breccia. A shallower hole will be drilled from this site to finish testing the full

extent of mineralization not tested in CC-17 26 and to provide a third intercept into the new zone which

will aid in determining its shape needed to design further drilling. Once determined a drill program will

be finalized for immediate and aggressive follow up drilling.

Sampling and QA/QC

All technical information for the La Cigarra 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. S amples are then labeled placed in plastic

bags, sealed and with interval and sample numbers recorded. Samples are delivered by the Company

via courier 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 will be with HQ core and has been contracted to BD Drilling from

Guadalajara, Mexico.

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 August 29, 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 suc h 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 an y updates or

revisions to any such statemen ts 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 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 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 fro m 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 no t 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 19