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Kootenay Intercepts 1,297 gpt Silver & 0.285 gpt Gold Over 3.2 Meters at Copalito Silver- Gold Project, Mexico

Drill Results

Kootenay Intercepts 1,297 gpt Silver & 0.285

gpt Gold Over 3.2 Meters at Copalito Silver-

Gold Project, Mexico

VANCOUVER, BC

,

July 22, 2020

/CNW/ -

Kootenay Silver Inc.

(TSXV: KTN)

(the "Company" or

"Kootenay")

is pleased to announce assay results from 3 new drill holes at the Copalito silver-gold

project (the "Property") in Sinaloa State,

Mexico

. These are the second, third and fourth core holes

to be announced since the restart of the 3,000 meter, 2020 drill campaign (the "Program") designed

to target high-grade silver and gold showings of the 6 principal veins exposed at surface on the

Property.

James McDonald

, President and CEO of Kootenay, stated:

"Encountering high silver grades so

early in the inaugural drill program at Copalito is very exciting. We are optimistic about the potential

of both Copalito and Columba hosting high-grade silver resources to add to our existing silver

equivalent resource base of 144 million ounces in the measured and indicated category plus 35.7

million ounces in the inferred category at our La Cigarra and Promontorio properties. These projects

represent a very strong portfolio of silver projects for the Company and shareholders as we enter a

higher silver price environment."

Holes, BDH-20-002 to BDH-20-004, tested the 5 Senores Vein located in the southern area of the

Property. These holes, along with the previously released BDH-20-001 (see KTN news release

dated

June 16, 2020

), show good continuity for at least 500 meters of strike length along 5 Senores.

In addition, drilling has shown high-grade mineralization matching up with the promising results

garnered form surface sampling.

Two holes contained particularly exciting results. At a shallow depth hole BDH-20-004 intercepted

2,830 gpt silver

with

0.145 gpt gold

over

1 meter

within

3.2 meters

of

1,297 gpt silver

and

0.285.

gpt gold

all within

13.1 meters

of

347 gpt silver

and

0.216. gpt gold.

BDH-20-002 hit

10.3 meters

of

80 gpt silver

and

0.905 gold

including

1.7 meters

of

3.2 gpt gold

beginning at a depth of 42

meters.

Highlights form BDH-20-002 to BDH-20-004:

BDH-20-002

118 gpt silver

and

0.346 gpt gold

over 6.0 meters includes:

1.69 gpt gold

over 4.3 meters and

3.02 gpt gold

over 1.7 meters

BDH-20-004

2,830 gpt silver

and

0.145 gpt gold

over 1.0 meters within

1,297 gpt silver

and

0.285 gpt gold

over 3.2 meters and

347 gpt silver

and

0.216 gpt gold

over 13.1 meters within the 5 senores vein; this interval

encapsulates the first two highlights.

Hole BDH-20-005, drilled beneath BDH-20-004, hit a calcite breccia along the vein projection and is

interpreted to be fault offset.

Detailed Drill Results from BDH-20-001 to BDH-20-004

Hole ID

From

(meters)

To

(meters)

Interval

(meters)

Silver

(gpt)

Gold

(gpt)

Silver Eq.

(gpt)

BDH-20-001

8

64

56.0

58.0

-

58

including

29

51

22.0

106.0

-

106

including

29

32

3.0

244.0

1.09

342

including

46

51

5.0

250.0

0.247

272

BDH-20-002

42

52.25

10.3

80.0

0.905

161.5

Including

42

48

6.0

118.0

0.346

149.1

including

48

52.25

4.3

26.7

1.69

178.8

including

50.6

52.25

1.7

3.0

3.02

274.8

BDH-20-003

31

38.1

7.1

29.7

0.307

57.33

including

33

37

4.0

33.8

0.516

80.24

including

34

35

1.0

40.0

1.18

146.2

BDH-20-004

20.82

21.25

0.4

146.0

-

-

BDH-20-004

41

42

1.0

100.0

-

BDH-20-004

54

67.1

13.1

347.0

0.216

366.44

including

57.78

61

3.2

1,297.0

0.285

1,322.65

including

60

61

1.0

2,830.0

0.145

2,843.1

Note: Silver Equivalent based on 90:1 (silver to gold ratio)

Mineralization occurs in both classically banded quartz veins (+/- calcite) and silicified breccia within

the vein structures accompanied by 2 to 5% disseminated pyrite in chlorite altered wall rocks.

Sulfides in veins include pyrite, galena and sphalerite.

The strategy is to put a few holes into each of the principle outcropping veins to establish which are

most promising for hosting high grade deposits and then test those areas with a larger follow up

program. Thus, drilling will continue to systematically move from one outcropping vein set to another

with the objective of establishing vein geometry (strike and dip), grades and widths and finding veins

not exposed at surface. Most holes are quite shallow in this first phase.

Results will continue to be released as assays are received and interpreted by the Company. To

date approximately 1,600-meters of the 3,000-meter program has been completed.

Click to view

plan maps

and

cross sections

.

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

All technical information for the Copalito 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

Hermosillo, Sonora

. The samples are dried,

crushed and pulverized with the pulps being sent airfreight for analysis by ALS in

North 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 the states of

Sonora

,

Sinaloa

and

Chihuahua,

Mexico

, respectively.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at

July 21, 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.

SOURCE

Kootenay Silver Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/July2020/22/c5554.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 03:00e 22-JUL-20