Kootenay Silver Announces Closing of $20 Million Bought Deal Public Offering, Including Full Exercise of the over-Allotment Option

KOOTENAY SILVER ANNOUNCES CLOSING

OF $20 MILLION BOUGHT DEAL PUBLIC

OFFERING, INCLUDING FULL EXERCISE OF

THE OVER-ALLOTMENT OPTION

/NOT FOR DISTRIBUTION TO

UNITED STATES

NEWSWIRE SERVICES OR FOR

DISSEMINATION IN

THE UNITED STATES

/

VANCOUVER, BC

,

June 27, 2025

/CNW/ - Kootenay Silver Inc. ("

Kootenay

" or the "

Company

")

(TSXV: KTN) (OTCQX: KOOYF) is pleased to announce that the Company has completed its

previously announced and upsized bought deal public offering 19,057,800 units of the Company (the

"

Units

"), including the full exercise of the over-allotment option, at a price of

$1.05

per Unit for gross

proceeds to the Company of

$20,010,690

(the "

Offering

").

The Offering was led by Research Capital Corporation as the lead underwriter and sole bookrunner,

on behalf of a syndicate of underwriters, including Red Cloud Securities Inc. (collectively, the

"

Underwriters

").

Each Unit consists of one common share of the Company (each, a "

Common Share

") and one-half

of one Common Share purchase warrant (each whole warrant, a "

Warrant

"). Each Warrant shall

entitle the holder to purchase one Common Share of the Company at a price of

$1.58

at any time on

or before

June 27, 2028

.

The net proceeds raised under the Offering will be used for the advancement of the Company's

Columba Silver Project in

Mexico

as well as for general working capital and corporate purposes.

The Offering was completed pursuant to a prospectus supplement of the Company filed in all of the

provinces of

Canada

and dated

June 19, 2025

that supplemented the short form base shelf

prospectus of the Company dated

March 27, 2024

. The Offering remains subject to the final

approval of the TSX Venture Exchange (the "

TSXV

").

In connection with the Offering, the Company paid the Underwriters a cash commission of

$1,108,271.43

and issued to the Underwriters 1,055,497 broker warrants (the "

Broker Warrants

").

In addition, the Agents received an advisory fee of

$62,000

plus tax and 59,400 advisory broker

warrants on the same terms as the Broker Warrants. Each Broker Warrant entitles the holder

thereof to acquire one Common Share at a price of

$1.05

per Common Share at any time on or

before

June 27, 2028

. The Company also paid aggregate cash finder's fees of

$29,999.97

to certain

arm's length finders in connection with Units purchased by certain president's list purchasers.

The securities offered pursuant to the Offering have not been, nor will they be, registered under the

U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in

the United

States

or to, or for the account or benefit of, U.S. persons absent registration or an applicable

exemption from the registration requirements. This news release shall not constitute an offer to sell

or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in

which such offer, solicitation or sale would be unlawful.

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:

This news release contains "forward-looking information" within the meaning of applicable

Canadian securities legislation. "Forward-looking information" includes, but is not limited to,

statements with respect to the activities, events or developments that the Company expects or

anticipates will or may occur in the future. Generally, but not always, forward-looking information

and statements can be identified by the use of words such as "plans", "expects", "is expected",

"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the

negative connotation thereof or variations of such words and phrases or state that certain actions,

events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the

negative connation thereof.

Such forward-looking information and statements are based on numerous assumptions, including

among others, that the Company will allocate the net proceeds of the Offering to exploration

programs on a successful basis. Although the assumptions made by the Company in providing

forward-looking information or making forward-looking statements are considered reasonable by

management at the time, there can be no assurance that such assumptions will prove to be

accurate and actual results and future events could differ materially from those anticipated in such

statements.

Important factors that could cause actual results to differ materially from the Company's plans or

expectations include risks relating to receipt of TSXV approval for the Offering, risks relating to the

ability of the Company to apply the use of proceeds from the Offering as anticipated and those

risks set out in the Company's public documents filed on

www.sedarplus.ca

. Although the

Company has attempted to identify important factors that could cause actual results to differ

materially from those contained in the forward-looking information or implied by forward-looking

information, there may be other factors that cause results not to be as anticipated, estimated or

intended. There can be no assurance that forward-looking information and statements will prove to

be accurate, as actual results and future events could differ materially from those anticipated,

estimated or intended. Accordingly, readers should not place undue reliance on forward-looking

statements or information. The Company disclaims any intention or obligation to update or revise

any forward-looking information, whether as a result of new information, future events or

otherwise, other than as required by law.

SOURCE

Kootenay Silver Inc.

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%SEDAR: 00016508E

For further information:

For additional information, please contact: James McDonald, CEO &

President at 403-880-6016; Ken Berry, Chairman at 604-601-5652, 1-888-601-5650 or visit:

www.kootenarysilver.com

CO: Kootenay Silver Inc.

CNW 09:51e 27-JUN-25