July 30, 2013

Shares Outstanding: 62,738,850

Kootenay Silver Updates Hydrologic and Environmental Baseline Studies Required for Advancing Promontorio Silver Project in Sonora, Mexico.

Vancouver, British Columbia: Kootenay Silver Inc. (TSX VENTURE: KTN.V)

is pleased to report on ongoing hydrologic work and environmental baseline studies required for the advancement of the Promontorio resource.

Three monitoring wells have been installed along the main corridor of mineralization stretching from the Northeast Zone through the Pit on to the SW zone. The wells were installed to characterize the ground water levels to be used to develop a conceptual hydrogeological model and to determine additional information that is valuable at this stage of the Promontorio Project. Information gathered includes, but is not limited to:



Understanding groundwater on the property in terms of an initial evaluation of pit dewatering requirements.

 Initial evaluation of the potential for groundwater to supply a source of water to the project.

 Collection of initial baseline groundwater data that can be used to support acquisition of regulatory permits and assess potential environmental impacts.

This work is in preparation to evaluate groundwater conditions for Promontorio, including potential water sources and dewatering that may be required to sustain potential open pit or underground mining operations and augment water supply.

In addition, environmental baseline work over a 12 month period is complete and was done to analyze the characteristics of the surrounding environment. Surveying and data collection, of flora and fauna observations, sampling of soil, water and sediments and compilation of information on climate and socio-economic data of the area of interest were included. An analysis of geological and hydrological information available for the area was also compiled. This study provides baseline data needed to assess environmental impact of a future potential mining operation. The work was conducted by Delia Patricia Aguayo Hurtado, independent environmental consultant in Hermosillo, Sonora.

Geotechnical work completed to date includes the collection of extensive rock quality data (RQD) and specific gravity measurements along with point load testing measuring the shear strength of bedrock within and outside the resource boundaries.

Current NI 43-101 Compliant Silver Resource

tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.

ABOUT KOOTENAY

at 403-238-6986

Ken Berry, Chairman

at 604-601-5652; 1-888-601-5650

or visit:

www.kootenaysilver.com

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