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Kootenay Reports High Grade Silver Intercepts Including 601 gpt Over 1.23 Meters Within 279 gpt Over 4.08 Meters & 753 gpt Over 0.95 Meters Within 620 gpt Over 2 Meters at Columba Project, Mexico

Drill Results

Kootenay Reports High Grade Silver

Intercepts Including 601 gpt Over 1.23 Meters

Within 279 gpt Over 4.08 Meters & 753 gpt

Over 0.95 Meters Within 620 gpt Over 2 Meters

at Columba Project, Mexico

VANCOUVER, BC

,

July 16, 2020

/CNW/ -

Kootenay Silver Inc.

(TSXV: KTN)

(the

"Company"

or

"Kootenay"

) is pleased to report results from an additional 5 drill holes from the high-grade

Columba Property (the

"Property")

located in Chihuahua State,

Mexico

. These holes are step outs

along strike and to depth from high-grade intercepts previously reported in the Phase-II drill

campaign (the

"Program"

).

Kootenay President and CEO

James McDonald

stated

: "These results show excellent continuity

and grade along the F Vein for 700 meters of strike length and depths to 240 meters. Having

established at least one well mineralized shoot within the F Vein over a substantial area we will now

focus on testing other veins on the Property. Priority areas include the J-Z vein area where last year

hole CDH-19-030 returned a 25.85 meter intercept grading 200 gpt silver and included highs of 982

gpt silver over 1.8 meters, 415 gpt silver over 11 meters and 721 gpt silver over 4 meters!"

Mineralization on the F Vein remains open along strike and to depth and continues to be a promising

target for further investigation after other veins have been explored. To date the spacing of drill holes

along the F Vein has varied from 50 meters to over 200 meters thus more drilling is required.

Currently, sufficient drilling of the F Vein has been completed to establish a well mineralized shoot so

drilling will move onto the other veins.

Holes CDH-20-052 and CDH-20-053 fill in a 140 meter gap between previous holes CDH-20-046,

which reported

1585 gpt silver

over 0.6 meters

within

553 gpt silver

over 2.9 meters,

and CDH-

19-035 with

494 gpt

silver

over 1.35 meters.

Highlights from the additional 5 holes include:

CDH-20-052

601 gpt silver over 1.23 meters

within a wider intercept of

279 gpt silver over 4.08 meters

and

199 gpt silver over 7.53 meters

within the F Vein.

CDH-20-053

753 gpt

Ag over 0.95 meters

within

620 gpt silver over 2 meters

,

496 gpt silver

over 3

meters

and 116 gpt silver over 34 meters within the F Vein.

CDH-20-053 is about 53 meters down dip and 15 meters north of CDH-20-052

CDH-20-054

319 gpt

silver over 1.8 meters

within 158 gpt silver over 5 meters within the F Vein.

CDH-20-054 is 20 meters south of CDH-19-035 and approximately 20 meters further down dip.

CDH-20-055

Returned two lower grade intervals within the F Vein approximately 100 meters and 125 meters

down dip of holes CDH-19-035 and CDH-20-054 respectively.

Hole CDH-20-056 was abandoned due to bad ground about 150 meters before reaching target

depth.

Click to view the

plan map

,

F Vein map

and

long section

, and

drill sections

.

Detailed Drill Results – CDH-20-052 to CDH-20-055

Hole ID

From

(meters)

To

(meters)

Interval

(meters)

Silver

gpt

Pb

%

Zn

%

Geologic

Intersection

CDH-20-052

100.92

143.35

42.43

61

0.03

0.12

F Vein +

Hanging Wall

Including

100.92

108.45

7.53

199

0.08

0.27

100.92

105

4.08

279

0.11

0.38

102.39

105

2.61

366

0.14

0.5

F Vein

Including

102.39

103.62

1.23

601

0.26

0,76

And

132.55

134.48

1.93

103

0.06

0.67

F-Vein Footwall

CDH-20-053

72.48

72.91

0.43

193

0.13

0.19

Hanging Wall Structure

And

138

172

34

116

0.11

0.24

F-Vein + Hanging Wall

Including

139

150

11

175

0.17

0.37

Including

161.65

164.65

3

496

0.55

0.91

F Vein

Including

162.65

164.65

2

620

0.35

0.90

Including

162.65

163.6

0.95

753

0.38

1.0

Including

163.60

164.65

1.05

501

1.0

0.82

CHD-20-054

98

123

25

57

0.12

0.13

F Vein

Including

106

111

5

158

0.4

0.35

Including

108

109.8

1.8

319

0.18

0.5

And

121

123

2

104

0.07

0.28

F Vein Footwall

CDH-20-55

196.7

199.75

3.05

58

0.05

0.11

F Vein

Including

198.25

198.8

0.55

101

0.10

0.15

And

217

221

4

171

0.10

0.30

Footwall Structure

Including

217

219

2

150

0.08

0.27

Including

219

221

2

192

0.20

0.31

This release brings the total holes of the Phase-II campaign drilled thus far in 2020 to 16; all of

which have tested the F Vein with most returning multiple high-grade intercepts. A total of about

3200 meters of the announced 7000-meter program has been completed.

Drilling is ongoing and more results will be released once holes are completed and assays are

received, compiled, and interpreted.

Prior to the work stoppage due to COVID-19 a total of 10 holes were completed. Results for the

first 10 holes, previously released on

May 19

th

and

May 26

th

, 2020, have been provided again in the

highlights below followed by a detailed table containing their full results:

Highlights of Holes CDH-20-042 to CDH-20-051 (news release

May 19

th

and 26th, 2020):

CDH-20-045

456 gpt

silver over 1.5 meters

within

2.5 meters of 350 gpt silver

and

239 gpt silver over

4.3 meters

in the F Vein.

974 gpt silver over 0.5 meters

within 208 gpt silver over 3 meters in a footwall Vein.

CDH-20-046

1,585 gpt silver over 0.6 meters

within

911 gpt silver

over 1.4 meters

and

553 gpt

silver

over 2.9 meters

and

689 gpt

silver over 0.5 meters

all in the F Vein.

CDH-20-047

782 gpt silver

over 1.05 meters

within

400 gpt silver

over 4.97 meters

all within a wider

interval of 15.65 meters averaging 166 gpt silver.

CDH-20-042

Intercepted

111 gpt silver over 5.9 meters

before entering an old mine working.

CDH-20-043

Intercepted 105 gpt silver over 1 meter before entering an old mine working.

Intercepted a footwall Vein grading 119 gpt silver over 5 meters.

CDH-20-048

259 gpt silver over 1.06 meters

in the Hanging-wall structure.

197 gpt silver over 3.6 meters

within

124 gpt silver over 7.0 meters

in the F Vein structure.

CDH-20-049

2,010 gpt silver over 1.0 meter

within

762 gpt silver over 2.8 meters

in the Hanging-wall

vein.

368 gpt silver over 0.65 meters

within 68 gpt silver over 10.2 meters in the Hanging-wall

structure.

484 gpt silver over 1.4 meters

within

209 gpt silver over 4.4 meters

in the F Vein structure.

CDH-20-050

486 gpt silver over 0.45 meters

within 50 gpt silver over 38 meters in the F Vein structure.

CDH-20-051

865 gpt silver over 2.0 meters

within

317 gpt silver over 6.0 meters

in the Hanging-wall

structure.

769 gpt silver over 1.1 meters

and

317 gpt silver over 4.36 meters

within

72 gpt silver over

36 meters

in the F Vein structure.

Detailed Drill Results of Previously Released 2020 Holes CDH-20-042 to CDH-20-051

Hole ID

From

(meters)

To

(meters)

Interval

(meters)

Silver

gpt

Pb

%

Zn

%

Geologic

Intersection

CDH-20-042

42.4

42.7

0.3

115

Hanging wall Quartz vein

And

67

80

13.0

86

0.02

0.1

F Vein system

&

mined stope

And

70.4

76.3

5.9

111

0.03

0.11

CDH-20-043

63

64

1.0

105

0.02

0.06

F Vein system

&

mined stope

And

75

80

5.0

119

0.05

0.16

Calcite-Quartz-Barite vein (Footwall Vein)

CDH-20-044

29

30.9

1.9

56

0.03

0.01

Faulted F Vein

CDH-20-045

63.7

68

4.3

239

0.08

0.36

F Vein

Includes

64.6

67.1

2.5

350

0.12

0.48

Includes

65.6

67.1

1.5

456

0.17

0.62

And

77

80

3.0

208

0.08

0.21

Quartz Barite Vein,

(Footwall Vein)

Includes

78.3

78.8

0.5

974

0.03

0.3

CDH-20-046

71.0

77.8

6.8

264

0.06

0.13

F Vein System

Includes

71.8

73.2

1.4

911

0.24

0.24

Includes

71.8

74.7

2.9

553

0.13

0.18

Includes

71.8

72.4

0.6

1585

0.33

0.33

Includes

72.7

73.2

0.5

689

0.206

0.29

Includes

73.2

74.7

1.5

219

0.04

0.13

CDH-20-047

111.0

126.65

15.65

166

0.17

0.47

F Vein System

Includes

114.0

119.97

5.97

351

0.4

1.03

Includes

115.0

119.97

4.97

400

0.45

1.2

Includes

115.7

116.75

1.05

782

1.13

3.6

Includes

116.75

117.9

1.15

305

0.1

0.3

Includes

117.9

119

1.1

219

0.38

0.65

Includes

119.0

119.97

0.97

432

0.48

1.05

Includes

119.97

126.65

6.68

55

0.02

0.13

CDH-20-048

108.69

109.75

1.06

259

0.16

0.3

Hanging-wall Structure

182

189

7

124

0.16

0.6

F Vein Structure

including

184.4

188

3.6

197

0.28

1.07

including

184.4

186.05

1.65

257

0.33

1.74

219

220

1

104

0.2

0.04

Footwall Structure

CDH-20-049

124

126.8

2.8

762

0.42

0.54

Hanging-wall Vein

including

125.8

126.8

1

2010

1.18

1.24

248.8

259

10.2

68

0.02

0.1

Hanging-wall Structure

including

250.95

251.6

0.65

368

0.2

0.43

311

315.4

4.4

209

0.16

0.26

F Vein Structure

including

311.9

312.7

0.8

212

0.29

0.53

And

314

315.4

1.4

484

0.15

0.3

CDH-20-050

137.8

145.9

8.1

92

0.07

0.12

Hanging-wall Structure

including

140.2

140.7

0.5

737

0.257

0.52

175

213

38

50

0.04

0.11

F Vein Structure

including

175

176.2

1.2

141

0.09

And

184.7

185.15

0.45

486

0.24

0.15

And

198.25

200.06

1.81

118

0.13

0.24

And

211

213

2.0

119

0.06

0.22

CDH-20-051

147

153

6.0

317

0.12

0.17

Hanging-wall Structure

including

149

151

2.0

865

0.37

0.42

193

198

5.0

87

0.07

0.1

Hanging-wall Vein

including

196.54

198

1.46

135

0.02

0.15

207

243

36.0

72

0.05

0.17

F Vein Structure

including

207

211.36

4.36

317

0.27

0.93

And

210.26

211.36

1.1

769

0.75

2.88

278

281.63

3.63

147

0.21

1.41

Footwall Structure

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

July 15, 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/July2020/16/c8037.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 16-JUL-20