Kootenay Silver Inc., further to its press release dated Dec. 10, 2014, has received subscriptions for $742,000 under the non-brokered private placement of units, and has closed the initial tranche of the private placement and issued an aggregate of 2.12 million units at a purchase price of 35 cents per Unit. The Company anticipates closing the balance of the Private Placement shortly and will provide an update in due course.

Each Unit consists of one common share ("Common Share") and one transferable share purchase warrant ("Warrant") of Kootenay. Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.60 until December 23, 2016. A All securities issued in connection with the Private Placement are subject to a hold period which expires on April 24, 2015. Upon approval by the TSX Venture Exchange, cash finder's fees to arm's length parties totaling $23,100 will be paid on this portion of the Private Placement.

The net proceeds from the Private Placement will be used to finance additional work on Kootenay's Promontorio property, which includes the new La Negra Breccia discovery, its other properties and for general working capital.

La Negra Silver Discovery

The La Negra Breccia discovery is situated approximately 6.5 kms north of Kootenay's flagship Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the 'Promontorio Mineral Belt.' The recently completed Phase I drill program on La Negra follows a highly successful trenching and surface sampling program that confirmed widespread silver mineralization exists over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May 28th and June 5th, 2014 for more details). The Phase I drill program on La Negra returned significant intervals and high grades of widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery. (See news releases, 'Drill Results' Oct. 15, 2014, Nov. 26, 2014 and Dec 3, 2014 for more details).

To View Full Results of Sampling and drill Program Visit: www.kootenaysilver.com

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.