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Kootenay Silver Reports 0.47 gpt Gold over 222.0 Meters from Rock Sampling Program at Cervantes Gold Project, Sonora Mexico

Drill Results Exploration Programs Sampling & Geoscience Results

Kootenay Silver Reports 0.47 gpt Gold over

222.0 Meters from Rock Sampling Program at

Cervantes Gold Project, Sonora Mexico

VANCOUVER

,

Aug. 22, 2018

/CNW/

- Kootenay Silver Inc. (TSXV: KTN) (the "Company" or

"Kootenay")

is pleased to announce that Aztec Minerals Corp. ("

Aztec

") has reported positive

sample results on Kootenay's

Cervantes

gold property ("

Cervantes

" or the "

Property

") located in

Sonora

, Mexico.

Rock chip-channel sampling conducted by Aztec (see table below) returned 0.47 gpt gold over 222.0

meters from Line B taken along drill roads at the

California

porphyry gold-copper prospect.

Highlights of the program also include sample results from five of the seven sample lines that confirm

highly anomalous soil sample results and extensive porphyry-type gold mineralization intersected in

the Phase 1 drill program (

click to view map

).

Line Sampling Results

Line Number

Continuous Length in Meters

Gold (gpt)

A

75.0

0.11

B

222.0

0.47

C

84.0

0.40

D

183.0

0.32

E

81.0

0.53

F

33.0

0.26

G

111.0

0.02

Of particular interest is rock sample line G which returned 0.02 gpt gold over 111.0 meters adjacent

to drill hole 18CER017 which intersected 0.35 gpt gold over 116.0 meters with 62.0 meters of 0.50

gpt gold. More studies are required to understand the controls on mineralization and infill drilling

should help to better define the geometry of the subsurface mineralized zones.

Aztec's Phase 2 exploration program consists of geological mapping, rock, soil and sediment

sampling and airborne magnetic and radiometric surveys to focus on better defining additional drill

targets on the recently expanded (3,649 hectares) the Property.

New Terraspec SWIR analysis of core samples was recently conducted and results are under

evaluation. Preliminary results suggest a good correlation between elevated gold values and high

temperature muscovite and/or illite phyllosilicates. Recognizing the minerals associated with gold

mineralization will assist Aztec in prospecting the rest of the

Cervantes

property. The Terraspec

SWIR measures and identifies specific minerals including higher temperature, well-crystallized

minerals often associated with gold mineralization.

To date, soil sampling results range from 0.00 gpt up to 3.30 gpt gold (mostly 0.01 to 1.0 gpt gold)

and confirm four historic prospects as highly anomalous gold targets (

click to view map

):

California

north extension soil assays up to 0.33 gpt gold, open to north and west

Purisima East

soil assays up to 3.3 gpt gold, 15 samples > 1.0 gpt gold, 700x700 meter

anomaly

Purisima West

soil assays up to 0.61 gpt gold, open to east

Jacobo soil assays up to 0.66 gpt gold, open in all directions

The previous IP-resistivity survey over the

California

prospect outlined a large, strong chargeability

anomaly interpreted to be a zone of porphyry related sulfide mineralization extending from the

interpreted base of the oxide zone around 100 metres deep plunging to the southeast down below

the 400 metre depth limit of the survey. This chargeability anomaly remains a top priority drill target

to expand the known porphyry type mineralization at the

California

prospect.

The airborne magnetic and radiometric survey is scheduled for completion in October after the rain

season is over. The airborne geophysical data should assist in identifying new prospective targets

as well as refining our understanding of the multiple existing targets at Cervantes. At that time,

Aztec will evaluate its priorities for the next phase of drilling.

The Cervantes Property is held under an earn-in option to agreement whereby Aztec Minerals can

acquire up to 100% interest in the property in two stages. Upon completion of the two stage earn-in,

Kootenay will retain a 2.5 % NSR and receive a payment of

US$5.00

per ounce or gold or gold

equivalent based on a NI 43-101 Resource Estimate. For more information see the Company's news

release dated

October 13, 2015

.

Sampling and QA/QC

All rock samples were put into plastic bags, labeled with sample number, closed with zip ties, and

placed in polyfiber sacks by Aztec Minerals. Chip-channel samples were collected in

3.0 m

intervals and described in detail. Blanks and certified standards were inserted into the chip-

channel sample stream and subsequently reviewed, without any outliers or abnormal results. Soil

samples were collected in the field with a minus 10 sieve, collecting 1.5 to 2.0 kg samples and

placed in manila envelopes. The rock and soil samples were delivered to Bureau Veritas

Laboratories in

Hermosillo

and analyzed for gold using a 30 gram sample by fire assay fusion with

AAS finish. The XRF scanning for base and trace elements was conducted by a geologist in

Hermosillo

with an Innovex Delta, under Aztec supervision.

Qualified Persons

The Kootenay scientific and 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 Kootenay by

James McDonald

, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.

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 silver resources, new discoveries and the near-term economic

development of two of its priority silver dprojects located in prolific mining districts in

Sonora

, State

and Chihuahua, State,

Mexico

, respectively.

On Behalf of the Board of Directors of

KOOTENAY SILVER INC.

"James McDonald"

President & CEO

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.

CAUTIONARY NOTES:

The sampling results disclosed in this news release are not necessarily indicative and drilling is

required to confirm a mineral deposit.

The information in this news release has been prepared as at

August 21, 2018

. This news release

contains "forward-looking information" within the meaning of Canadian securities legislation and

"forward-looking statements" within the meaning of the United States Private Securities Litigation

Reform Act of 1995 (collectively, "

forward-looking statements

"). All statements, other than

statements of historical fact, that address activities, events or developments that Kootenay Silver

Inc. ("

Kootenay

" or the "

Company

") believes, expects or anticipates will or may occur in the future

including, without limitation, the anticipated exploration program results from exploration activities,

the discovery and delineation of mineral deposits and sampling results from the Cervantes Project

and other properties, the anticipated content, commencement, and cost of exploration programs in

respect of the Company's projects and mineral properties, the anticipated business plans and

timing of future activities of the Company, future capital expenditures (including the amount and

nature thereof), business strategies and measures to implement strategies, competitive strengths,

goals, expansion and growth of the business and operations, plans and references to the future

success of the Company, and such other matters, are forward

looking statements. These forward-

looking statements reflect the current expectations or beliefs of the Company based on information

currently available to Kootenay and often use words such as "expects", "plans", "anticipates",

"estimates", "believes", "intends", "potential", "may" or variations thereof or the negative of any of

these terms.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the

actual results of the Company to differ materially from those discussed in the forward-looking

statements and, even if such actual results are realized or substantially realized, there can be no

assurance that they will have the expected consequences to, or effects on, Kootenay. Factors that

could cause actual results or events to differ materially from current expectations include, among

other things: the ability of the Company to obtain sufficient financing to fund its business activities

and plans, operating and technical difficulties in connection with mineral exploration and

development and mine development activities for Company's projects generally, actual results of

exploration activities (including the estimation or realization of mineral reserves and mineral

resources), the timing and amount of estimated future production, costs of production, capital

expenditures, the costs and timing of the development of new deposits, the availability of a

sufficient supply of water and other materials, requirements for additional capital, future prices of

gold and silver, changes in general economic conditions, changes in the financial markets and in

the demand and market price for commodities, possible variations in ore grade or recovery rates,

possible failures of plants, equipment or processes to operate as anticipated, accidents, labour

disputes and other risks of the mining industry, delays in obtaining governmental and regulatory

approvals (including of the TSX Venture Exchange), permits or financing or in the completion of

development or construction activities, changes in laws, regulations and policies affecting mining

operations, hedging practices, currency fluctuations, title disputes or claims limitations on

insurance coverage and the timing and possible outcome of pending litigation, environmental

issues and liabilities, risks related to joint venture operations, and risks related to the integration of

acquisitions, as well as those factors discussed under "Risk Factors" in the Company's most recent

annual management's discussion and analysis and other filings of the Company with the Canadian

Securities Administrators, copies of which can be found under the Company's profile on the

SEDAR website at

www.sedar.com

.

Any forward-looking statement speaks only as of the date on which it was made, and except as

may be required by applicable securities laws, Kootenay disclaims any intent or obligation to

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

results or otherwise. Although Kootenay believes that the assumptions inherent in the forward-

looking statements are reasonable, forward-looking statements are not guarantees of future

performance and accordingly undue reliance should not be put on such statements due to their

inherent uncertainty. There can be no assurance that forward-looking statements will prove to be

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

statements.

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.

SOURCE

Kootenay Silver Inc.

View original content with multimedia:

http://www.newswire.ca/en/releases/archive/August2018/22/c1018.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 11:05e 22-AUG-18