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Kootenay Intercepts 650 gpt Silver Over 7.45 Meters Within 159 gpt Silver Over 39.9 Meters at Columba Silver Project, Mexico - Drill Highlights Include Overall Strike Length of F Vein Increased to 700 Meters

Drill Results

Kootenay Intercepts 650 gpt Silver Over 7.45

Meters Within 159 gpt Silver Over 39.9 Meters

at Columba Silver Project, Mexico - Drill

Highlights Include Overall Strike Length of F

Vein Increased to 700 Meters

VANCOUVER

,

Jan. 8, 2020

/CNW/ -

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

"Kootenay")

is pleased to announce assay results from the last seven core drill holes competed

from its 2019 drill program at its Columba high-grade silver project (the "Property"), located in

Chihuahua State, Mexico.

Kootenay President and CEO

James McDonald

states, "We continue to be pleased with drill results

from Columba that now indicate significant strike extensions to the F vein and a potential new zone in

the B vein south of the old mine workings. Hole CDH-19-35 extends F vein mineralization

approximately 225 meters from high grade intercepts in holes CDH-19-11 and 12. High silver grades

have now been encountered in the F vein for over 700 meters of strike length and remains open to

depth and strike. Additionally, hole CDH-19-38 is also very positive as it intercepted 628 gpt silver

over 1.5 meters in the B vein; 650 meters from old mine workings."

Highlights of holes CDH-19-35 to CDH-19-041:

Hole CDH-19-035:

405 gpt silver over 2.28 meters

within a wider interval of

103 gpt silver over 11.35

meters in

a footwall vein to the F Vein

;

494 gpt silver over 1.35 meters in the F Vein

within

274 gpt silver over 3.0 meters

and 60

gpt silver over 23.0 meters;

547 gpt silver over 1.0 metre

within a wider interval of

114 gpt silver over 7.05 meters

in a

hydrothermal breccia in the E Vein.

Hole CDH-19-038:

628 gpt silver over 1.5 meters

within a wider interval of

301 gpt silver over 4.63 meters

and

175 gpt silver over 10.0 meters

in the B Vein. Quartz, quartz-barite veins and veinlet stock

work and silicified rhyolite.

The following are highlights of twinned holes to test triple tube drilling for achieving better recoveries.

Results showed a 1 to 9% increase in recovery across mineralized intervals. Within intervals grade

and widths with triple tube show both increases and decreases relative to better recoveries. More

holes are needed to determine the effect of recovery on grade and widths.

Hole CDH-19-040: Twin of CDH-19-005:

808 gpt silver over 0.88 metres

over a wider intercept of

194 gpt silver over 4.9 metres

intercepting banded quartz vein (F Vein).

Hole CDH-19-041: Twin of CDH-19-008:

650 gpt silver over 7.45 meters

within a wider interval of

159 gpt silver over 39.9 meters

intercepting banded quartz vein (F Vein);

Including:

919 gpt silver

over 1.15 meters

;

953 gpt silver over 1 meter; 527 gpt silver over

1 meter; 860 gpt silver over 1 meter and 715 gpt silver over 1.8 meters

.

Click the following links to view

:

Plan Map

and

Cross Sections for holes CDH-19-035 to 041

A follow up drill program is being designed based on the results of the 2019 drill program. Numerous

priority areas have been identified and additional structures remain untested all of which will be

addressed in the upcoming 2020 drill program. This program is expected to start in the next few

weeks toward the beginning of February and once the program has been reviewed and approved

details of number of holes and meters will be provided.

The 2019 drill program totaled 6,853 meters in 41 holes. Detailed results for all drill holes can be

viewed by clicking the following link:

Columba Drill Results

.

Detailed Drill Results – Holes CDH-19-35 to CDH-19-041

Hole ID

From

(meters)

To

(meters)

Interval

(meters)

Silver

gpt

Pb

%

Zn

%

Geologic Intersection

CDH-19-035

39

50.35

11.35

103

0.02

0.07

Quartz- Calcite Veinlet

Stockwork in Footwall of

F Vein

Includes

46

48.28

2.28

405

0.054

0.1

119

142

23

60

0.04

0.16

Includes

119

122

3

274

0.18

0.6

F Vein, Banded Quartz

Includes

120.65

122

1.35

494

0.327

1.14

179

186.05

7.05

114

0.04

0.08

Quartz Calcite Veinlet Stockwork

Includes

179

180

1

547

0.1

0.2

Hydrothermal Breccia

E Vein

181

182

1

134

0.05

0.06

CDH-19-036

No significant values

CDH-19-037

No significant values

CDH-19-038

161.51

165.53

4.02

65

0.03

0.05

Hydrothermal Breccia

Includes

164.7

165.53

0.83

198

0.104

0.09

Banded Quartz (F Vein?)

195.2

196

0.8

106

0.02

0.03

Quartz barite vein

244

254

10

175

0.03

0.12

B Vein

Quartz, Quartz-Barite

veins, veinlet stockwork

and silicified rhyolite

Includes

247.05

251.68

4.63

301

0.05

0.15

Includes

247.05

248.55

1.5

628

0.108

0.284

Includes

248.55

250.6

2.05

106

0.007

0.113

Includes

250.6

251.68

1.08

218

0.07

0.06

CDH-19-039

(twinned

CDH-19-003)

15.25

21.35

6.1

67

0.01

0.06

F Vein close to surface

CDH-19-040

(twinned

CDH-19-005)

21

25.9

4.9

194

0.07

0.19

F Vein

Banded Quartz

Includes

22.85

23.73

0.88

808

0.28

0.42

Includes

23.73

24.16

0.43

173

0.05

0.14

CDH-19-041

(twinned

CDH-19-008)

15

54.9

39.9

159

0.05

0.13

F Vein

Banded Quartz

Includes

42.85

50.3

7.45

650

0.23

0.26

Includes

42.85

44

1.15

919

0.361

0.092

Includes

44

45

1

953

0.337

0.373

Includes

45

46

1

527

0.163

0.213

Includes

46

47

1

860

0.242

0.417

Includes

47

48.8

1.8

715

0.302

0.259

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

January 7, 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/January2020/08/c7806.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 08:30e 08-JAN-20