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Kootenay Reports Drilling Intersects 0.48 Gpt GOLD, 0.07% Copper over 85.2 Meters Including 0.66 Gpt GOLD over 30.2 Meters at Cervantes GOLD Property, Sonora, Mexico

Drill Results

June 26, 2018

KOOTENAY REPORTS DRILLING INTERSECTS 0.48 GPT GOLD, 0.07% COPPER OVER

85.2 METERS INCLUDING 0.66 GPT GOLD OVER 30.2 METERS AT CERVANTES GOLD

PROPERTY, SONORA, MEXICO

Kootenay Silver Inc. (TSXV: KT N) (the “Company” or “Kootenay”) is pleased to report that

Aztec Minerals Corp. (“Aztec Minerals”) today anno unced the results of the final 6 core drill holes

from its 17-hole phase I drill program totaling 2,67 4 meters conducted on Kootenay’s Cervantes gold

project, located in Sonora State, Mexico.

The final six holes successfully intersected long intervals of porphyry-type gold (copper, silver)

mineralization and extended the strike length to mo re than 800 meters at the California and the Jasper

prospect areas. Recent drill highlights include 0. 48 grams per tonne (“gpt”) gold, 0.07% copper and

2.0 gpt silver over 85.2 meters (approximate true widt h) in hole CER15, with a higher-grade intercept

of 0.66 gpt gold over 30.2 meters. Click the following links to view a drill plan and long section.

The full news release issued by Aztec Minerals can be found at: http://aztecminerals.com/

The Cervantes Property is held under an earn-in option agreement whereby Aztec Minerals can

acquire up to 100% interest in the property in two stages. If Aztec earns 100% interest, Kootenay will

retain a 2.5% NSR and receive a payment of US$5.0 0 per ounce or gold equivalent based on a NI 43-

101 compliant resource estimate. See Kootenay news release dated October 13, 2015.

Drill Results

Hole ID From

(meters)

To

(meters)

Interval

(meters)

Gold

(gpt)

Copper

(%)

Silver

(gpt)

*18CER012 36.4 52.9 16.5 0.25 0.12 2.2

18CER013 0.5 101 100.5 0.22 0.12 2.1

incl. 16.8 93 76.2 0.25 0.15 2.4

and 41 63 22 0.37 0.38 3.2

18CER014 0 98.5 98.5 0.41 0.13 2.2

incl. 16 49 33 0.60 0.02 2.2

and 54.5 98.5 44 0.38 0.26 2.2

and 116.9 125 8.1 0.35 0.07 2.4

18CER015 1.8 87 85.2 0.48 0.07 2.0

Incl. 1.8 32 30.2 0.66 0.02 3.0

and 42 60 18 0.51 0.24 0.5

18CER016 1.5 92 90.5 0.29 0.06 1.4

Incl. 1.5 36 34.5 0.55 0.03 1.5

18CER017 4 120 116 0.35 0.06 1.6

Incl. 20 82 62 0.50 0.06 2.0

and 56 70 14 0.84 0.07 1.9

*hole 18CER012 was abandoned at 52.85m due to drilling problems.

Notes: Drill holes were oriented to cross the most promin ent mineralized structures seen in outcrops so core

lengths reflect the approximate interpreted true width of the California zone mineralization.

Sampling and QA/QC

All core samples were split in half, placed into plast ic bags, labeled with sample number, secured with

zip ties, and placed in rice sacks by Aztec Minerals. Samples were typically collected in 2.0-meter

intervals with occasional exceptions up to 6.0-meter intervals due to lower core recovery. Blanks,

duplicates, and certified standards were inserted into the sample stream and subsequently reviewed

without any outliers or abnormal results. The core samples were delivered to Bureau Veritas

Laboratories in Hermosillo and analyzed for gold using a 30-gram sample by fire assay fusion with

AAS finish. Core sample pulps were shipped to Vancouver and analyzed with a 0.25-gram sample

using 4-acid ICP-MS providing analysis on 36 elements.

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 on behalf of Kootenay by James McDonald, P.Geo, President, CEO &

Director for Kootenay.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts resp onsibility 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 asset s in Mexico, Kootenay continues to provide its

shareholders with significant leverage to sil ver prices. The Company remains focused on the

expansion of its current silver resources, new disco veries and the near-term economic development of

two of its priority silver projects located in pro lific 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 prepared as at J une 25, 2018. Certain statements in this news release, referred t o herein as

"forward-looking statements", constitute "forward-looking statem ents" under the provisions of Canadian provincial securities la ws. 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 c ontingencies.

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 forwar d-looking statements, which speak only as of the date

made. Except as otherwise required by la w, Kootenay expressly disclaims any obliga tion or undertaking to release publicly any updates or

revisions to any such statements to refl ect any change in Kootenay’s expectations or any change in events, conditions or circum stances 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 gu idelines strictly prohibit inform ation of this type in docume nts filed with

the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on ou r properties.

This news release may contain forward-looking statements in cluding but not limited to comments regarding the timing and content of

upcoming work programs, geologica l interpretations, receipt of property titles, pot ential mineral recovery processes, etc. Forw ard-looking

statements address future events and conditions and therefore in volve inherent risks and uncertainties. Actual results may diff er 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 w hile such

terms are recognized and required by Canadi an regulations, the United States Secur ities and Exchange Commission does not recogn ize

them. "Inferred Mineral Resources" have a great amount of uncerta inty 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 Canadi an rules,

estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investor s are

cautioned not to assume that all or any part of Measured or I ndicated Mineral Resources will ever be converted into Mineral Res erves.

United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

2018 number 13