KTN.V · 2020-10-05 12:00:00

Kootenay Discovers Broad Area of Silver Mineralization at J-Z Zone Hosting New Hydrothermal & Stockwork System at Columba Project, Mexico

Drill Results

Kootenay Discovers Broad Area of Silver

Mineralization at J-Z Zone Hosting New

Hydrothermal & Stockwork System at

Columba Project, Mexico

VANCOUVER, BC

Oct. 5, 2020

/CNW/ -

Kootenay Silver Inc.

(TSXV: KTN)

(the "Company" or

"Kootenay)

is pleased to announce recent drilling results confirm the discovery of a broad zone of

high grade hydrothermal breccias and encompassing low to medium grade quartz stockwork system

at the J-Z Zone at the Columba silver project located in Chihuahua State, Mexico.

The highly prospective J-Z Zone is located approximately 700 meters east of the F Vein and

measures at least 320 meters long, 460 meters deep and an average width of 60 meters. This

system continues to be open laterally on strike and at depth. Detailed surface mapping and sampling

indicates the strike potential of the area may extend up to 800 meters in length. The hydrothermal

breccias and stockwork is a distinct style of silver mineralization in comparison to the classic banded

quartz vein typical of the F Vein.

James McDonald

, President and CEO of Kootenay stated

: "We are excited about the resource

and grade potential of these breccias and stockworks because they offer potential for both high

grades and large tonnages. At the present time, we are drilling the previously undrilled areas of the

E Vein, located 100 to 400 meters east of the F Vein. Drilling will then move onto the B and D veins

to follow up on previous hits such as 628 gpt silver over 1.5 meters in drilling from last year."

Gustavo Gallego

, Chief Geologic Engineer of Kootenay, commented

: "The Technical team is

working on a detailed geological mapping and structural study, while the prospector team is

sampling newly discovered mineralization at surface to determine the geometry of the high-grade

mineralization in the J-Z Zone. Once this program is complete and assay results from drilling and

surface sampling have been received, compiled and interpreted, a drill plan will be designed

immediately to further establish continuity, grade and size of hydrothermal breccia and stock-work

within the J-Z Zone."

Drill Highlights of J-Z breccias & veins system:

New holes reported in this release include holes CDH-20-061 to CDH-20-066. Click the following

links to view a

drill plan map

set of cross sections

and

video of the J-Z Zone

CDH-20-061 (

two mineralized zones intercepted)

43 gpt silver over 30.85 meters hitting hydrothermal breccias and quartz stockwork includes:

164 gpt silver over 1.0 meter

63 gpt silver over 8.0 meters; and

54 gpt silver over 7.85 meters in Hydrothermal breccias and quartz stockwork includes:

144 gpt silver over 2.0 meters

CDH-20-062

93 gpt silver over 11.6 meters hitting hydrothermal breccias and quartz stockwork

includes:

115 gpt silver over 8.3 meters

161 gpt silver over 1.0 meter

CDH-20-063

(two mineralized zones intercepted)

762 gpt silver over 0.49 meters in hydrothermal breccias and quartz stockwork within

187 gpt silver of 2.49 meters

and

91 gpt silver over 9.0 meters

CDH-20-064

67 gpt silver over 7.69 meters hitting a banded quartz vein and hydrothermal breccia includes:

100 gpt silver over 4.5 meters in a banded quartz vein

CDH-20-065

106 gpt silver over 7.0 meters hitting a banded quartz vein.

CDH-20-66

(two mineralized zones intercepted)

22 gpt silver over 19.0 meters in hydrothermal breccia and stockwork and

773 gpt silver over 1.5 meters within 9.0 meters of 154 gpt silver and 25.5 meters of 69

gpt silver

Highlights of previously announced drill holes in the J-Z Zone of hydrothermal breccia and quartz

stockwork.

CDH-19-030

(two zones one in J Vein and the other in breccia-stockwork

)

76 gpt silver over 8.9 meters hitting J vein includes 173 gpt silver over 3.33 meters a

200 gpt silver over 25.85 meters hitting hydrothermal breccias and quartz stockwork

includes:

415 gpt silver over 11.15 meters

721 gpt silver over 4.07 meters

982 gpt silver over 1.9 meters

CDH-19-031

314 gpt silver over 3.0 meters hitting hydrothermal breccias and quartz stockwork

includes:

776 gpt silver over 0.63 meters in hydrothermal breccia

CDH-20-060 (two mineralized zones intercepted)

132 gpt silver over 64.0 meters hitting hydrothermal breccias and quartz stockwork

includes:

226 gpt silver over 9.0 meters

1025 gpt silver over 1.0 meter a

229 gpt silver over 22.0 meters in hydrothermal breccias and quartz stockwork

includes

608 gpt silver over 5.0 meters

1160 gpt silver over 1.0 meter

Holes CDH-20-67 to hole CDH-20-070 intercepted notable hydrothermal breccias as well as quartz

stockwork and results will be announced once assays are received and compiled.

The J-Z zone is currently defined by a total of 4,587.1 meters in 21 holes drilled intermittently in the

area since 2019. The holes have been multipurpose, trying in the first instance to intersect the

banded quartz veins outcropping in the area, and second utilizing the teams experience to try to

define the resource potential of the breccia and stock work zone.

Detailed Drill Results – Holes CDH-20-061 to CDH-20-066

Hole ID

From

(meters)

Interval

(meters)

Silver

gpt

Geologic

Intersection

CDH-20-061

180

210.85

30.85

0.02

0.06

Hydrothermal

Breccia &

Stockwork

Includes

180

181

164

0.15

0.1

Includes

180

188

0.35

0.72

Includes

194

197

0.05

0.06

Includes

203

204

108

0.03

0.06

Includes

203

210.85

7.85

0.02

0.06

222

224

144

0.1

0.52

CDH-20-062

69.4

11.6

0.03

0.1

Hydrothermal

Breccia &

Stockwork

Includes

79.3

8.3

115

0.04

0.13

Includes

161

0.09

0.2

Includes

141

0.056

0.14

Includes

74.7

1.7

111

0.05

0.1

Includes

76.25

77.75

1.5

103

0.01

0.04

Includes

77.75

79.3

1.55

141

0.06

0.23

CDH-20-063

0.04

0.08

Hydrothermal

Breccia &

Stockwork

Includes

73.2

3.2

165

0.1

0.11

161.51

164

2.49

187

0.05

0.06

Includes

161.51

162

0.49

762

0.15

CDH-20-064

61.31

7.69

0.02

0.04

Quartz Vein

Includes

62.5

4.5

100

0.03

0.05

CDH-20-065

106

0.02

0.11

Quartz Vein

CDH-20-066

129

148

0.01

0.03

Hydrothermal

Breccia &

Stockwork

Includes

144

148

0.01

0.03

189.5

215

25.5

0.05

0.15

Includes

206

215

154

0.1

0.3

Includes

213.5

215

1.5

773

0.4

0.8

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.

Detailed Drill Results – Previously Released Holes In J-Z Zone

Hole ID

From

(meters)

Interval

(meters)

Silver

gpt

Geologic

Intersection

CDH-19-024

29.8

1.52

198

0.05

0.14

J Vein

Includes

30.5

0.5

358

0.033

0.34

And

48.8

25.2

0.02

0.09

Hydrothermal

Breccia & Quartz

Stockwork

Includes

53.4

54.9

1.5

160

0.064

0.17

CDH-19-025

135.2

233.3

98.1

0.03

0.12

Hydrothermal

Breccia & Quartz

Stockwork

Includes

186.05

193.65

7.6

105

0.103

0.41

CDH-19-026

172

0.02

0.06

Hydrothermal

Breccia & Quartz

Stockwork

CHD-19-027

120.09

147

26.91

0.05

0.1

J Vein

Includes

121

127.56

6.56

115

0.18

0.25

Includes

126.17

127.56

1.39

247

0.8

0.56

CDH-19-028

138

205

0.03

0.08

Hydrothermal

Breccia & Quartz

Stockwork

Includes

153

167

0.03

0.09

Includes

160

162

163

0.23

0.31

Includes

195

205

0.11

0.21

CDH-19-029

42.7

45.35

2.65

0.02

0.04

J Vein

114

166

0.01

0.04

Hydrothermal

Breccia &

Stockwork

Includes

128

136

0.02

0.05

130.21

132.3

2.09

172

0.05

0.1

164

166

104

0.02

0.06

CDH-19-030

67.1

8.9

0.02

0.11

J Vein

And

149.15

175

25.85

200

0.03

0.15

Hydrothermal

Breccia & Quartz

Stockwork

Includes

150.5

161.65

11.15

415

0.07

0.26

Includes

154

158.07

4.07

721

0.08

0.33

Includes

156.17

158.07

1.9

982

0.08

0.4

CDH-19-031

223

226

314

0.2

0.28

E Vein

224.15

224.78

0.63

776

0.41

0.32

CDH-19-032

165

175

0.27

0.6

E Vein

238.85

289

50.15

0.02

0.07

Hydrothermal

Breccia

CDH-19-033

105.2

165

59.8

0.03

0.13

J-E & Z Vein

Intersection

Includes

150.95

160.52

9.57

146

0.27

CDH-19-034

38.15

15.85

0.02

0.05

E Vein

Includes

41.2

47.83

6.63

103

0.04

And

107

130.21

23.21

0.16

0.03

Hydrothermal

Breccia & Quartz

Stockwork

117

118

124

0.04

CDH-20-060

144

208

64.0

132

0.03

0.1

Hydrothermal

Breccia & Quartz

Stockwork

Includes

147

156

9.0

226

0.03

0.13

Includes

152

153

1.0

1025

0.08

0.21

And

183

205

229

0.05

0.14

Includes

190

201

361

0.08

0.18

Includes

191

196

608

0.09

0.12

Includes

193

194

1160

0.1

0.13

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at

October 4, 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 19

SOURCE

Kootenay Silver Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/October2020/05/c4743.html

%SEDAR: 00016508E

For further information:

James McDonald, CEO and President at 403-880-6016; Raj Kang, CFO

at 604-601-5653; 1-888-601-5650, or visit: www.kootenaysilver.com

CO: Kootenay Silver Inc.

CNW 07:30e 05-OCT-20

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