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Kootenay Silver Drills New Target Proximal to Existing Mineral Resource

Exploration Programs

May 31, 2017

KOOTENAY SILVER DRILLS NEW TARGET PROXIMAL

TO EXISTING MINERAL RESOURCE

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “ Kootenay”) is pleased to announce that it has

completed the first three drill holes of the previously announced 7,500-meter core drill program being carried out at

its 100% owned La Cigarra silver project located in Chihuahua State, Mexico.

Drilling continues with the forth drill hole of the program underway on the eastern portion of the Las Venadas Zone,

where an extensive new area of silver mineraliz ation has been recently discovered by Kootenay’s technical team

through an ongoing geological mapping and sampling program . This new mineralized area within the Las Venadas

Zone measures 400 x 200 meters and is open to the north towards the Las Carolinas Zone and to the south.

The new mineralized area is believed to be the southeasterly continuation of the San Gregorio -Las Carolinas silver

mineralized trend that hosts La Cigarra’s established NI 43 -101 silver resource. Detailed exploration within the

southeast area of La s Venadas was initiated after sampling by Kootenay returned values of 190, 323 and 58 2 gpt

silver over the prospective area from surface grab samples. The zone is open to the southeast as some of the strongest

mineralization becomes covered by tertiary rhyolites where prospecting values of 139, 195, 179, 133, 56 and 53 gpt

silver were obtained from grab samples. Of the 168 samples taken during the program results ranged from a high

of 582 gpt to less than 1 gpt silver, 42 samples reported grades exceeding 20 gpt silver with many samples returning

high values of lead. Click to view: Table highlighting silver values greater than 20 gpt . Click to view: Map of Las

Venadas sampling.

Kootenay President and CEO James McDonald states, “We are very pleased to commence drilling on the newly

discovered eastern portion of the Las Venadas Zone. The new zone is contained within a strikingly similar geological

setting to the Las Carolinas, San Gregorio and La Borracha Zones of silver mineralization situated to the north. All

indications from ground exploration and sampling to date make this region of the property a top priority as we

continue to ramp up our drill and resource expansion program at La Cigarra.”

The new ly discovered Las Venadas mineralization is hosted within a northwesterly trending, arcuate structure

marked by a magnetic low associated with silver mineralization to the north hosted in the Las Carolinas, San

Gregorio and La Borracha Zones. This magnetic anomaly and associated silver mineralization can be traced for over

5 kilometers and remains open at both ends.

The original Las Venadas mineralization represents the northern sector of a prominent north-trending structure: the

Las Venadas-Soledad-Las Chinas trend, previously drill -tested by Kootenay. The new Las Venadas silver

mineralization sits on trend southwest of the La Cigarra silver resource and to the immediate east of the Las Venadas-

Soledad-Las Chinas trend.

Mineralization within the new area is similar to the La Cigarra established resource and is hosted in veins,

stockworks and breccia’s proximal to the contact of an underlying sandstone facies with an argillite/siltstone/thin

bedded limestone facies. Drilling commenced on the Las Venadas Zone on May 20, 2017. Results will be announced

as assays are received and interpreted by the Company.

Kootenay continues to evaluate the numerous silver anomalies on the La Cigarra silver project with the objective of

outlining further prospective drill targets.

Sampling and QA/QC

All technical information for the La Cigarra exploration program is obtained and reported under a formal quality

assurance and quality control ("QA/QC") program. Samples are taken under the direction of qualified geologists and

stored in sealed bags. Sampl es are delivered by the Company via courier 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 is performed for pre cision 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 will be with HQ core and has been contracted to BD Dril ling from Guadalajara,

Mexico

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 Pro jects) and

reviewed on behalf Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified

Person.

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

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 s ilver resources, new discoveries and

the near-term economic development of two of its priority silver projects located in prolific mining districts in Sonora,

State and Chihuahua, State, Mexico, respectively.

Neither the TSX Venture Exchange nor its Regul ation Services Provider (as that term is defined in policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 May 30, 2017. 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 a ny 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 a re 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 Commissio n 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 upgrade d 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.

2017 number 13