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fast track exploration - Canada & Mexico

Kootenay's La Negra prospect is a significant and exciting new high grade silver discovery that offers exceptional potential to evolve into a substantial near surface, open-pit resource.

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Message: Kootenay Reports on the Copley part of the"Nechako Generative Program
Kootenay Reports on the Copley part of the"Nechako Generative Program"; Channel Samples Include: 10.02 g/t Goldover 2 m; 4.8 g/t Gold over 3 m
11/8/2010 4:02 PM - Canada NewsWire


VANCOUVER, Nov. 8, 2010 (Canada NewsWire via COMTEX News Network) --

Shares Outstanding: 37,276,600

KootenayGold Inc. TSX.V: KTN ("Kootenay") is pleased to announce results ofchannel sampling, geologic mapping and prospecting on the Copleyproperty in the Nechako Plateau of north central B.C.

Workduring the 2010 season on the Copley is part of a larger generativeprogram looking for multi million ounce gold deposits within theNechako Plateau, an area of B.C. that is conducive for the formationand discovery of such deposits. The recent discovery at theBlackwater-Davison property underscores the potential of the area.

HIGHLIGHTS OF COPELY CHANNEL SAMPLE INCLUDE:

-- 10.02 g/t gold over 2 meters; -- 4.8 g/t gold over 3meters; -- 0.55 g/t gold over 7 meters; -- 0.33 g/t gold over 9meters (with 0.461 g/t gold over 5 meters); -- 0.226 g/tgold over 8 meters.

HIGHLIGHTS OF PROSPECT SAMPLING:

-- Up to 14 g/t gold from grabs

NECHAKO GENERATIVE PROGRAM - "Looking for Multi-Million Ounce Gold Deposits"

Theresults of exploration encountered several areas of high levelepithermal mineralization evidenced by hydrothermal breccias,silicification, argillic alteration associated mostly with an east westtrend of rhyolite domes within a larger northeast structural corridor.The different areas of mineralization define a large area over a 6 by 2kilometer trend. Outcrop is generally poor indicating potential forburied deposits is good.

The best mineralized occurrence to date,the Smoking Pipe occurrence, is a large 55 by 150 meter outcrop ofsilicified rhyolite and rhyolite porphyry ubiquitously altered byquartz stockwork veinlets, hydrothermal breccia and silicification. Theoccurrence is anomalous in gold throughout.

The Smoking Pipeoccurrence sits on the outer rim of a circular magnetic low measuringabout 1.5 by 2.0 kilometers across. This low is overburden covered andmay represent magnetic destruction caused by the epithermal system thatmineralized the Smoking Pipe. The magnetic low is a notable feature asgold mineralization at the nearby Blackwater Davison discovery isreported to occur with magnetic lows.

The Smoking Pipe is one ofseveral mineralized areas covered by the property. A map detailing thechannel sampling of the Smoking Pipe will be posted on the KootenayGold Inc. website.

Permitting is underway for further work to include drilling, geophysics and additional mapping and channel sampling.

QA/QC

Rockand soil samples were prepared at the Acme Analytical Laboratories Ltd("Acme") preparation lab in Vancouver, B.C. Rock samples were crushedto 70% passing a 2mm screen, and a 250 g split from the crushed samplewas then pulverized to 85% passing a 75 micron screen. The samples werethen fire assayed for gold (Group 3B, 30-gram sample), and analyzed by35-element ICP-ES with four-acid digestion (Group 1E) for surface rocksamples, and aqua regia digestion for channel samples (Group 1DX) atthe ACME Vancouver analytical lab.

Channel sampling comprised of10 lines: two base lines 10 meters apart trending 050º and 8 tie linesroughly 10 apart and trending approximately 150º (Figs. 9-3 and 9-4).In all, 249 samples were collected. Channels were cut with agas-powered cut-off saw using a 16 inch diamond blade. Channels wereapproximately 3 cm wide and 3 cm deep; and samples were loosened using acold chisel and then placed in a bag. Each bag was labeled with aunique code; and a corresponding metal pin with a scribed metal tag wasplaced at each sample site. Prospecting samples were handled in thesame manner.

All samples were securely handled. Sample materialwas placed in polyurethane, woven (rock) and their tops secured andshipped to ACME Labs Ltd. in Vancouver, B.C together with sampleshipment forms listing the sample numbers.

The foregoinggeological disclosure has also been reviewed and verified by Kootenay'sCEO, James McDonald, P.Geo (a qualified person for the purpose ofNational Instrument 43-101, Standards of Disclosure for MineralProjects). Mr. McDonald is a director of Kootenay.

ABOUT KOOTENAY

Kootenayis actively developing mineral projects in the Sierra Madre Region ofMexico and in British Columbia, Canada. The Company flagship propertyis the former producing Promontorio Silver Mine in Sonora State,Mexico.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

CautionaryNote to US Investors: This news release may contain information aboutadjacent properties on which we have no right to explore or mine. Weadvise U.S. investors that the SEC's mining guidelines strictlyprohibit information of this type in documents filed with the SEC. U.S.investors are cautioned that mineral deposits on adjacent propertiesare not indicative of mineral deposits on our properties. This newsrelease may contain forward-looking statements including but notlimited to comments regarding the timing and content of upcoming workprograms, geological interpretations, receipt of property titles,potential mineral recovery processes, etc. Forward-looking statementsaddress future events and conditions and therefore involve inherentrisks and uncertainties. Actual results may differ materially fromthose currently anticipated in such statements.

SOURCE: Kootenay Gold Inc.

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