Mr. James McDonald reports

KOOTENAY WELCOMES MARK SMITH AS TECHNICAL ADVISOR FOR LA CIGARRA PROJECT DEVELOPMENT

Kootenay Silver Inc. has welcomed Mark Smith as a technical adviser to the company.

James McDonald, president and chief executive officer, stated: "Mark's addition to our technical advisory team strengthens the depth of our technical knowledge as we advance the La Cigarra project down the development path. Mark's advice will guide us in planning appropriate geotechnical drilling and associated engineering for the tailings facility envisioned in the La Cigarra PEA."

Mr. Smith is recognized as a world expert in the design, construction, operations and closure of tailings management facilities and heap leach facilities. Many design standards used today for tailings disposal and heap leach pads were developed by Mr. Smith or his team. He has contributed to various publications and texts in the fields of heap leaching, tailings management, sustainable development, containment systems and closure, writing and co-writing over 30 technical papers.

Mr. Smith was the founder of Vector Engineering Inc., a 500-person engineering firm specializing in tailings and heap leach engineering with offices in seven countries and working around the world. He has worked extensively throughout North and South America, including Mexico, the United States, Canada and the Andean nation. He currently serves on the boards of directors for Western Copper and Gold and Brazilian Nickel, and on technical review boards for Newmont, Barrick, Glencore, Talamore and Minsur.

His key project design and review include: Teck's Quebrada Blanca and Nueva Union -- Chile; La India, Dolores, Cerro San Pedro and Camino Rojo -- Mexico; Western Copper and Gold's Casino and Victoria's Eagle Gold forensic review board -- Yukon, Canada; Barrick's Goldstrike, Phoenix, Turquoise Ridge, Carlin and Cortez -- United States, Veladero -- Argentina -- and Pierina and Lagunas Norte -- Peru; Newmont's Coffee gold -- Yukon, Canada, Carlin -- United States -- and Yanacocha -- Peru; BHP Billiton's Cerro Colorado, Spence and Escondida -- Chile, Tintaya -- Peru -- and Cerro Matoso -- Colombia; Vale's Cristalino, Area 118 and Piaui -- Brazil; Rio Tinto's Barney's Canyon -- U.S., La Granja -- Peru, Ranger -- Australia -- and Rossing -- Namibia; Codelco's Radomiro Tomic and El Abra -- Chile, and Freeport's Cerro Verde -- Peru.

Additionally, the company announces the annual set of options and incentive units for employees, directors, officers, advisers and consultants of the company to purchase an aggregate of 2.2 million shares and issued restricted share and deferred share units totalling 1.11 million common shares (760,000 and 350,000, respectively). The stock options have a five-year term and are exercisable at a price of 94 cents per option.

Qualified persons

The 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 has been reviewed and approved on behalf of Kootenay by Dale Brittliffe, BSc, PGeol, vice-president, exploration, of Kootenay Silver, the company's nominated qualified person pursuant to NI 43-101. Mr. Brittliffe has reviewed the scientific and technical information disclosed in this news release and is not independent of Kootenay Silver.

About Kootenay Silver Inc.

Kootenay Silver is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre region of Mexico. Supported by one of the largest junior 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 its priority silver projects located in prolific mining districts in Sonora state and Chihuahua state, Mexico, respectively.

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