Kootenay Silver Announces $12 Million Bought Deal Public Offering of Units The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business days, through SEDAR+

Kootenay Silver Announces $12 Million Bought Deal Public Offering of Units

The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business

days, through SEDAR+

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia – June 17, 2025 – Kootenay Silver Inc. (TSXV: KTN; OTCQX:

KOOYF) (the "Company" or " Kootenay") is pleased to announce that it has entered into an

agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on

behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the

Underwriters have agreed to purchase, on a bought deal basis, 11,430,000 units of the Company

(the “ Units”) at a price of $1.05 per Unit for aggregate gross proceeds to the Company of

$12,001,500 (the "Offering").

Each Unit shall be comprised of one common share of the Company (a " Common Share") and

one-half of one Common Share purchase warrant of the Company ( each whole warrant, a

"Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an

exercise price of $1.58 per Common Share for a period of 36 months following closing of the

Offering.

The net proceeds from the Offering of the Units will be used for advancement of the Company's

Columba Silver Project in Mexico, working capital and general corporate purposes.

The Company has granted to the Underwriters an option (the “ Over-Allotment Option ”) to

increase the size of the Offering by up to an additional number of Units, and/or the components

thereof, that in aggregate would be equal to 15% of the total number of Units to be issued under

the Offering, to cover over -allotments, if any, and for market stabilization purposes, exercisable

at any time and from time to time up to 30 days following the closing of the Offering.

The closing of the Offering is expected to occur on or about June 25, 2025 (the “Closing”), or

such other earlier or later date as the Underwriters may determine. Closing is subject to the

Company receiving all necessary regulatory approvals, including the approval of the TSX Venture

Exchange (the “Exchange”) to list, on the date of Closing, the Common Shares, and the Common

Shares issuable upon exercise of the Warrants and the Underwriters’ broker warrants, on the

Exchange

In connection with the Offering, the Company intends to file a prospectus supplement within two

business days (the “ Prospectus Supplement ”) to the Company’s short form base shelf

prospectus dated March 27 , 2024 (the “ Shelf Prospectus ”) with the securities regulatory

authorities in each of the provinces and territories of Canada (except Quebec). The Shelf

Prospectus and the Prospectus Supplement will contain, important detailed information about the

Company and the Offering. Prospective investors should read the Prospectus Supplement and

accompanying Shelf Prospectus and the other documents the Company has filed on SEDAR+ at

www.sedarplus.ca before making an investment decision.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the

United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior

to qualification or registration under the securi ties laws of such jurisdiction. The securities being

offered have not been, nor will they be, registered under the United States Securities Act of 1933,

as amended, and such securities may not be offered or sold within the United States or to, or for

the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S.

registration requirements and applicable U.S. state securities laws.

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.

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 STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain statements and information that constitute forward -looking

information within the meaning of applicable Canadian securities laws. All statements in this news

release, other than statements of historical facts are forward -looking statements. Such forward-

looking statements and forward -looking information specifically include, but are not limited to,

statements that relate to the completion of the Offering and the timing thereof, the use of proceeds

of the Offering, the exercise by the Underwriters of the Over-Allotment Option, the timely receipt

of all necessary approvals, including approval of the TSX Venture Exchange.

Such forward‑looking statements or information are based on a number of assumptions, which

may prove to be incorrect. Assumptions have been made regarding, among other things:

conditions in general economic and financial markets; accuracy of assay results; geological

interpretations from drilling results, timing and amount of capital expenditures; performance of

available laboratory and other related services; future operating costs; and the historical basis for

current estimates of potential quantities and grades of target zones. The actual results could differ

materially from those anticipated in these forward ‑looking statements as a result of risk factors,

including the timing and content of work programs; results of exploration activities and

development of mineral properties; the interpretation and uncertainties of drilling results and other

geological data; receipt, maintenance and security of permits and mineral property titles;

environmental and other regulatory risks; project costs overrun s or unanticipated costs and

expenses; availability of funds; failure to delineate potential quantities and grades of the target

zones based on historical data; and general market and industry conditions. Forward -looking

statements are based on the expecta tions and opinions of the Company’s management on the

date the statements are made. The assumptions used in the preparation of such statements,

although considered reasonable at the time of preparation, may prove to be imprecise and, as

such, readers are cautioned not to place undue reliance on these forward -looking statements,

which speak only as of the date the statements were made. The Company undertakes no

obligation to update or revise any forward -looking statements included in this news release if

these beliefs, estimates and opinions or other circumstances should change, except as otherwise

required by applicable law.

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

in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy

of this release.