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KOOTENAY REPORTS DRILLING AT LA CIGARRA RETURNS MULTIPLE SILVER INTERCEPTS EXTENDING TO THE NORTH & SOUTH OF THE KNOWN DEPOSIT Highlights Include 109.27 gpt Silver Over 12 Meters and 736.25 gpt Silver Over 4 Meters

Drill Results

July 12, 2018

KOOTENAY REPORTS DRILLING AT LA CIGARRA RETURNS MULTIPLE SILVER

INTERCEPTS EXTENDING TO THE NORTH & SOUTH OF THE KNOWN DEPOSIT

Highlights Include 109.27 gpt Silver Over 12 Meters and 736.25 gpt Silver Over 4 Meters

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

results of eight core holes from its 2018 drill pro gram carried out on its 100% owned La Cigarra silve r

project (the “Property”), located in Chihuahua, Mex ico. Drilling was distributed over several priority

zones on the Property including the Las Carolinas, La Borracha and Nogalera zones with results returning

a series of medium to high-grade silver intercepts in all areas, further supporting the expansion pote ntial

of the La Cigarra Resource. Click to view location of zones in relation to La Cigarra Resource .

Kootenay President and CEO James McDonald states , "We are very excited by these results that

further underscore the inherent potential for new d iscoveries and to substantially increase the size a nd

scope of our established silver resource. In particular, drilling on Las Carolinas to the south of the deposit

hit consistent grades and intervals of silver exten ding 100 meters on strike and 200 meters down dip.

Drilling on the La Borracha Zone located contiguously north of the deposit further confirmed this target’s

large bulk tonnage potential, which now extends a f ull 1,100 meters on strike from the resource

boundary”

Highlights of Recent Drilling:

Las Carolinas Zone :

• Hole CC-18-51 intercepted 109.27 gpt silver over 12.0 meters within a wider intercept of 45.22 gpt

silver over 41.38 meters ; extending the mineralized silver zone to the south for 100 meters as well

as down dip for 200 metres; click to view a plan map of Las Carolinas and this link for a cross

section of hole CC-18-51

• Magnetic data further suggests silver mineralization to the south of Las Carolinas continues for

upwards of two kilometres northeast of the Las Venadas Zone where drilling has returned high-

grade silver; click to view magnetic structure

• Hole CC-18-49 tested for continuity of the 104 vein and hit 143.86 gpt silver over 6.79 meters

within a wider intercept of 78.89gpt silver over 14.0 meters ; click to view cross section of hole CC-

18-49

• Hole CC-18-50 was also drilled to test the 104 vein but the vein was cut off by a post mineral dyke.

La Borracha Zone :

• Hole CC-18-44 intercepted 73.00 gpt silver over 2.0 meters and 32.93 gpt silver over 12.37

meters further confirming La Borracha as a bulk tonnage silver target

• Mineralization to the north has been encountered fo r 1,100 meters beyond the La Cigarra Resource

see Kootenay news release dated April 11, 2018 .

Nogalera Zone :

• Hole CC-18-47 intercepted 2,890.00 gpt silver over 1.0 meter within a wider intercept of 736.25

gpt silver over 4.0 meters

• High grade silver mineralization at Nogalera looks promising as it is associated with a structurally

focused zone of alteration and mineralization traceable for 800 to 1,000 meters on surface. Holes CC

18-45,46 and 48 all hit narrow weakly anomalous gol d and or silver within similar structurally

focused zones.

Detailed results of the 8 drill holes can be seen in the table listed below.

Drill Results:

Hole ID Zone From

(meters)

To

(meters)

Interval

(meters) (1)

Silver

(gpt)

Gold

(gpt)

Pb

(%)

Zn

(%)

CC-18-44 La Borracha 100 102 2 73 0.0365 0.254 0.108

CC-18-44 121.73 134.1 12.37 32.93 0.049 0.156 0.216

CC-18-45 Nogalera 104 108 4.0 1.50 0.266 0.065 0.18 4

CC-18-46 Nogalera 334.55 336.33 1.78 48.47 0.723 0. 031 0.082

CC-18-47 Nogalera 101 105 4.0 736.25 0.088 0.325 0.122

Including 101 102 1.0 2890.00 0.246 1.105 0.283

CC-18-48 Las Carolinas 51 53 2.0 46.5 0.054 0.015 0 .081

CC-18-49 Las Carolinas 25 39 14.0 78.89 0.035 0.023 0.073

Including 32.21 39 6.79 143.86 0.048 0.031 0.101

CC-18-50 Las Carolinas No Significant Values

CC-18-51 Las Carolinas 233.62 275 41.38 45.22 0.026 0.034 0.077

Including 249 261 12.0 109.27 0.041 0.063 0.125

Including 251 259.83 8.83 122.51 0.047 0.069 0.132

(1) True widths cannot be accurately determined from the information available at this time therefore core lengths are reported.

Sampling and QA/QC

All technical information for the La Cigarra explor ation program is obtained and reported under a form al

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 geolog ists. Samples are then labeled placed in plastic ba gs,

sealed and with interval and sample numbers recorde d. Samples are delivered by the Company via

courier to ALS Minerals ("ALS") in Chihuahua. The s amples 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 an d accuracy. Analysis for silver, zinc, lead and cop per

and related trace elements was done by ICP four aci d digestion, with gold analysis by 30-gram fire ass ay

with an AA finish. All drilling will be with HQ or NQ core and has been contracted to BD Drilling from

Guadalajara, Mexico.

Qualified Persons

The Kootenay technical information in this news rel ease has been prepared in accordance with the

Canadian regulatory requirements set out in Nationa l Instrument 43-101 (Standards of Disclosure for

Mineral Projects) and reviewed on behalf Kootenay b y 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 respo nsibility for the adequacy or accuracy of this

release.

About Kootenay Silver Inc.

Kootenay Silver Inc. is an exploration company acti vely engaged in the discovery and development of

mineral projects in the Sierra Madre Region of Mexi co and in British Columbia, Canada. Supported by

one of the largest portfolios of silver assets in M exico, Kootenay continues to provide its shareholde rs

with significant leverage to silver prices. The Com pany remains focused on the expansion of its curren t

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 prepa red as at July 11, 2018. Certain statements in this news release, referred to herein as

"forward-looking statements", constitute "forward-l ooking 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 up on a number of factors and assumptions that, while considered reasonable by Kootenay as

of the date of such statements, are inherently subj ect to significant business, economic and competiti ve uncertainties and contingencies. Many

factors, known and unknown, could cause actual resu lts to be materially different from those expressed or implied by such forward-looking

statements. Readers are cautioned not to place und ue reliance on these forward-looking statements, wh ich speak only as of the date made.

Except as otherwise required by law, Kootenay expre ssly disclaims any obligation or undertaking to rel ease publicly any updates or revisions to

any such statements to reflect any change in Kooten ay’s expectations or any change in events, conditio ns 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 minin g guidelines strictly prohibit information of this type in documents filed with the SEC. U.S.

investors are cautioned that mineral deposits on ad jacent properties are not indicative of mineral dep osits on our properties. This news release

may contain forward-looking statements including bu t 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 mater ially from those currently anticipated in

such statements.

This press release uses the terms "Measured", "Indi cated", and "Inferred" resources. United States inv estors 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 Resourc e 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. Unit ed States investors are also cautioned

not to assume that all or any part of a Mineral Resource is economically or legally mineable.

2018 number 15