Kootenay Resources Announces Sale of the TWO Times FRED Property

KOOTENAY RESOURCES ANNOUNCES SALE OF THE TWO TIMES FRED PROPERTY

Vancouver, BC – February 10, 2026 – Kootenay Resources Inc. (TSXV: KTRI) (“Kootenay” or the

“Company”) is pleased to announce that it has sold its 100% interest in the mining claims known as the Two

Times Fred Property located in British Columbia (the “ Property”) to a subsidiary of Evolution Mining

Limited (“Evolution”) in consideration for the cash payment of CAD$1,000,000 to the Company and a 2.0%

net smelter returns royalty on the Property granted to the Company (the “ Kootenay NSR”) pursuant to the

terms of the mineral claims purchase agreement dated February 6, 2026 (the “Purchase Agreement”) between

the Company and Evolution.

The Company and Evolution have also concurrently entered into a net smelter returns royalty agreement for

Evolution to grant the Kootenay NSR to the Company. Up to the commencement of commercial production

on the Property, the Company granted Evolution the option to purchase one-half of the Kootenay NSR for the

cash payment of CAD$3,000,000 to the Company (the “Buy-Down Option”). If Evolution exercises the Buy-

Down Option, the Company will fully exercise the option to acquire and extinguish a pre-existing third-party

underlying 2% net smelter returns royalty on the Property (the “Underlying NSR”), and thereafter the

Kootenay NSR will be a 1.0% net smelter returns royalty on the Property payable to the Company. If Evolution

does not exercise the Buy -Down Option, the Company may acquire the Underlying NSR , or Evolution will

be required to pay any royalty payments owing under the Underlying NSR, which will reduce royalty

payments owing to the Company under the Kootenay NSR.

Evolution is at arm’s length to Kootenay.

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 Resources Inc.

Kootenay is an exploration company actively engaged in the exploration and discovery mineral projects in

British Columbia, Canada. The Company was formed as a spin -out of Kootenay Silver Inc in which

prospective Canadian assets were transferred to Kootenay Resources Inc. The transaction was completed in

October of 2021; Kootenay Silver currently holds 5.4 million common shares of Kootenay.

On behalf of the board of directors of the Company:

James McDonald,

Director

For additional information, please contact:

James McDonald, Director at 403-880-6016

Raj Kang, Director at 604-601-5650

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at the date of this news release, unless otherwise

noted. 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 , unless otherwise not ed. 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. More particularly, this news release contains forward-

looking statement pertaining to, among other things, payments on net smelter returns royalties and the

exercise of rights to repurchase such royalties. These forward-looking statements are based on a number of

assumptions which may prove to be incorrect including, but not limited to, the inability of the Company to

collect payments on its net smelter returns royalty.

2026 number 1