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Kootenay Responds to OTC Markets Request on Recent Promotional Activity

Listings & Exchange Regulatory & Compliance Company Commentary Marketing Announcement

Kootenay Responds to OTC Markets Request on Recent

Promotional Activity

VANCOUVER, BC

,

Dec. 17, 2025

/CNW/ -

Kootenay Silver Inc.

(TSXV: KTN) (OTCQX: KOOYF)

(the "Company" or "Kootenay")

confirms that, as previously announced on

September 8, 2025

, it has engaged Sideways Frequency LLC ("

SFLLC

") as an arm's-

length, third party firm contractually retained by the Company in accordance with routine industry practices to provide investor relations

services for an initial three-month term with a further three-month extension announced on

November 19, 2025

.

As announced on

September 8, 2025

, SFLLC provides certain marketing services to the Company in compliance with the policies and

guidelines of the TSX Venture Exchange and other applicable legislation. The marketing services include, but are not limited to, email

campaigns, native advertising, display ads, lead generation, creation of content, strategic planning, digital advertisement placement,

and overseeing progress and results of digital campaigns ("

Promotional Material

") regarding the Company and its common shares

traded on the OTCQX marketplace on behalf of the Company. Under the agreement with SFLLC, the Company paid SFLLC

US$250,000

for the initial three-month term. The Company paid SFLLC an additional

US$250,000

when the agreement was extended,

as announced on

November 19, 2025

. The consideration paid to SFLLC does not include any securities of the Company. Aside from

this engagement, the Company does not have any relationship with SFLLC and Mr.

Wesley De Souza

, CEO of SFLLC. To the

Company's knowledge, SFLLC holds no securities of the Company nor has any interest, direct or indirect, in the Company. SFLLC's

address is 1389 Center Drive, Suite 200,

Park City, Utah

, 84098,

[email protected]

. The news release can be found

under the Company's profile on SEDAR+ at

www.sedarplus.ca

.

The Company has editorial control over the Promotional Material for accuracy but is not directly involved in its creation or distribution,

other than factual accuracy. The content of the Promotional Material was taken from publicly available disclosure, including the

Company's press releases, corporate presentation and financial statements. The Company does not believe that the statements made

in the promotional material were false or misleading.

The OTC Markets Group Inc ("

OTC Markets

") has requested the Company issue this statement regarding its promotional activities

concerning its common shares quoted for trading on the OTCQX market (operated by OTC Markets).

It is impossible to precisely quantify the effect of the promotional activities, especially considering during the period of that SFLLC has

been retained by the Company, the silver spot price has increased from approximately

US$41

per ounce to approximately

US$64

per

ounce, an increase of

US$23

per ounce or approximately 56%. The Company also believes that there is an overall positive junior

exploration market and notes that the Company recently announced drill results.The Company does not believe the promotional

activities were the primary factor in any increase in trading volume in the common shares. Rather, the Company believes the

promotional materials drew attention to the Company, causing an increase in investor interest and awareness of the Company, which

together with the dramatic increase in silver spot price and the Company's drill announcements may have led to an increase in trading

volumes of the Company's common shares on the OTCQX marketplace.

After inquiring with its management, directors, officers, control persons, controlling shareholders (defined as shareholders owning 10%

or more of the Company's securities), and third-party service providers, the Company confirms that none of such parties have directly

or indirectly been involved in any way (including payment of a third-party) with the creation, distribution, or payment of promotional

materials related to the Company or its securities, except as described in this press release; or sold or purchased any of the

Company's securities in the past 90 days.

Except for SFLLC, in the last 12 months, the Company has not engaged directly any third party to provide investor relations, public

relations, marketing or related services. However, on enquiry, SFLLC has engaged a number of service providers in relation to the

Promotional Material, including but not limited to:

a) MarketBeat (

https://www.marketbeat.com/)

b)

www.tradingwire.com

c)

www.hugealerts.com

d)

www.bullishbear.com

e)

www.guystocks.com

f)

Chris Parry

(

https://equity.guru/)

g)

Kal Kotecha

(

www.juniorgoldreport.com

)

h)

Peter Epstein

(

www.epsteinresearch.com

)

i)

Greg Nolan

(

www.highballerstock.com

)

Other than as previously disclosed in the Company's continuous disclosure filings, the Company has not issued any shares or

convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market price at the time

of the issuance.

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

. 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

December 16, 2025

. 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.

View original content to download multimedia:

https://www.prnewswire.com/news-releases/kootenay-responds-to-otc-markets-request-on-recent-promotional-activity-302645257.html

SOURCE

Kootenay Silver Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/December2025/17/c4236.html

%SEDAR: 00016508E

For further information:

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

CO: Kootenay Silver Inc.

CNW 18:41e 17-DEC-25