KTN.V · 2018-11-19 12:00:00

Kootenay Options High-Grade Columba Silver Project in Mexico

Mergers & Acquisitions Property Options & Staking

Kootenay Options High-Grade Columba Silver

Project in Mexico

VANCOUVER

Nov. 19, 2018

/CNW/ -

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

"Kootenay")

is pleased to announce that a wholly owned Mexican subsidiary of the Company has

entered into an option agreement (the "Agreement") to acquire a 100% interest in the Columba silver

project ("Columba" or the "Property"), which hosts a past producing, high-grade silver mine, located

in the

state of Chihuahua

, Mexico.

Kootenay President and CEO

James McDonald

states

, "Columba is a very rare opportunity to

get into a property with the potential for the discovery of classic high-grade Mexican style vein

deposits. These opportunities only arise from the combination of depressed markets for silver and

the success of our generative program to identify prospects. As we have seen in recent months

high-grade discoveries have added a lot of value to market cap to a handful of juniors. Based on our

sampling and historic reports we believe that Columba has potential for such a discovery. We are

very excited to get to work on rapidly advancing the Property to drilling hopefully by the first quarter

of next year."

Columba is a past producing high-grade silver mine, which operated from 1900 until 1910, when

work ceased in the region due to the Mexican Revolution. The Property covers a large, high-grade

silver epithermal system comprised of numerous veins, which the Company has mapped over strike

lengths from 200 meters to up to 2 kilometres. Recent channel sampling on these veins conducted

by the Company has returned widths of 0.5 to 6 meters and carried grades of

up to 692 gpt silver

(see table at the end of the release for further details). The Property has never been systematically

explored in modern times.

Mineralization at Columba is text book low to medium sulfidation epithermal vein hosted, displaying

the classic zonation from non or weakly anomalous silver at high elevations that increase with depth

into the classic high-grade zones that make them such profitable deposit types. (

Click to view an image that shows this zonation on the Property

Background & Historical Data

Columba is an exciting target that not only hosts a series of high-grade silver veins on surface, but

also extensive underground workings. On surface four (4) old shafts are reported to extend to

depths of up to 200 meters and connect to at least six (6) levels of widespread underground drifts

covering lengths of up to 1,000 meters. (

Click to view an image of Columba's underground workings

The majority of the work appears

to have been done in the early 1900's and again in the mid 1900's with an estimated 70,000 to

100,000 tonnes being mined. Kootenay is very encouraged with the results from its recent sampling

and will be immediately exploring the Property to assess the potential for a new economic

discovery. To the best of the Company's knowledge all mineralized zones at Columba, which include

the multiple epithermal veins, have not been previously drilled. Historical reports obtained by

Kootenay suggest the silver grades of the main veins sampled on surface increase significantly with

depth. For example, highlights of historic data from underground workings at a depth of 100 metres

include nine (9) individual channel samples taken along a 25-meter length of vein where several high-

grade intervals were reported to return silver values from

350 gpt over 1.2 meters to a high of

1,900 gpt over 4 meters

(see table below for sample details). This pattern observed in historic data

is supported by sampling and mapping work completed by the Company on surface which shows the

same pattern of increasing grades with decreasing elevation.

Historic Sampling of Vein at 100-meter Depth

Sample Type

Width

(meters)

Silver

(gpt)

Channel

1.80

600

Channel

1.25

350

Channel

1.40

650

Channel

1.50

400

Channel

1.50

600

Channel

2.00

700

Channel

3.00

1,800

Channel

4.00

1,900

Channel

4.00

600

The historic data is from plan maps of sampling across the veins in underground workings and from

smelter reports reporting on tonnes and grade of material delivered which are consistent with the

historic plan maps. Assays taken by the Company of surface tailings are also consistent with historic

numbers.

The Company cautions that a qualified person has not done sufficient work to verify the

historical sampling data and has not substantiated any data as it pertains to the Property;

therefore, the reader should not rely upon such historical grades. The information is not

necessarily indicative of mineralization on the Property and is provided as background and

context material for the reader. The Company is treating the historical sampling data as a

guideline to determining potential future exploration programs.

Columba Surface Sampling Results (Conducted by Kootenay)

Sample

Sample Type

Silver

(gpt)

Gold

(ppb)

Copper

(ppm)

Lead

(ppm)

Zinc

(ppm)

FC2324ch

CH (2mt)

210

240

FC2325ch

CH (2mt)

N/A

420

FC2326ch

CH (2mt)

160

380

FC2327ch

CH (1,2mt)

244

100

240

1230

FC2328ch

CH (2mt)

180

FC2329ch

CH (1,5mt)

200

N/A

600

380

FC2330ch

CH (2mt)

330

730

650

FC2331ch

CH (0,5mt)

168

280

640

FC2332ch

CH (2mt)

179

480

270

FC2333ch

CH (1,3mt)

150

360

FC2334ch

CH (1,3mt)

N/A

130

240

FC2335ch

CH (1mt)

N/A

FC2336ch

CH (1mt)

N/A

FC2337ch

CH (1mt)

N/A

170

140

FC2338ch

CH (1mt)

175

630

680

FC2339ch

CH (0,8mt)

692

N/A

2290

3700

FC2340ch

CH (1mt)

195

N/A

930

1040

FC2341ch

CH (2mt)

271

1150

390

FC2342ch

CH (2mt)

109

N/A

430

320

FC2343ch

CH (1mt)

112

N/A

140

120

FC2344ch

CH (1mt)

115

N/A

270

320

FC2345ch

CH (1mt)

N/A

FC2346ch

CH (1,7mt)

N/A

FC2347ch

CH (0,5mt)

N/A

FC2348ch

CH (1mt)

N/A

220

FC2349P

P(2mt)

N/A

110

FC2350g

N/A

FC2351ch

CH (0,6mt)

N/A

150

FC2352g

N/A

FC2353g

N/A

380

FC2354g

N/A

110

FC2355g

N/A

GG295ch

CH (3mt)

215

650

290

GG296ch

N/A

140

530

GG297d

273

490

4630

9600

GG298ch

CH (3mt)

152

N/A

540

630

GG299d

TAILING

206

350

4510

11550

GG300d

TAILING

162

340

4290

10850

LM2555g

N/A

100

110

LM2556g

N/A

110

LM2557ch

CH(1,7mt)

N/A

120

160

LM2558g

N/A

LM2559g

N/A

200

LM2560g

N/A

120

LM2561g

N/A

LM2562g

N/A

180

LM2563ch

CH(1mt)

254

N/A

360

490

LM2564g

N/A

110

LM2565g

N/A

240

310

LM2566f

N/A

RG005ch

CH(0,6mt)

N/A

140

RG006ch

CH(0,5mt)

N/A

RG007ch

CH(0,5mt)

N/A

RG008ch

CH(1mt)

N/A

250

130

RG009g

N/A

RG010g

N/A

RG011f

N/A

130

RG012g

N/A

100

RJ045g

170

N/A

630

500

RJ046g

CH (0,5mt)

N/A

260

570

RJ047d

391

150

2770

8730

RJ048g

105

N/A

250

480

Note:

*G: grab sample, CH: chip-channel sample, F: float sample, SC: sub-crop sample, D: dump sample.

The Agreement

Under the terms of the Agreement, the Company can acquire a 100% ownership in the concessions

by making staged payments over a 4-year period totaling

US$3,290,000

. Payments are weighted to

the back-end of the agreement with an initial payment of

US$15,000

and first and second years

payments totalling

US$75,000

and

US$150,000

respectively. The Agreement includes a work

commitment of

US$250,000

by the first anniversary and

US$750,000

by the second anniversary of

the Agreement. Upon earn-in the vendors retain a 2% n.s.r. of which 1% can be purchased by the

Company for

US$750,000

Sampling and QA/QC

Surface samples reported herein are a combination of grab, chip and panel chip. 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 under the direction of qualified

geologists. Samples are then labeled placed in plastic bags, sealed and with interval, location and

sample numbers recorded. Samples are delivered by the Company via courier to ALS Minerals

("ALS") in Chihuahua City,

Mexico

. 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.

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 Kootenay by

James McDonald

, P.Geo,

President, CEO & Director for Kootenay, a Qualified Person.

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 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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at

November 18, 2018

. 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.

SOURCE

Kootenay Silver Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/November2018/19/c6259.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 05:00e 19-NOV-18

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