Mr. James McDonald reports

KOOTENAY RESOURCES ANNOUNCES CLOSING OF FINAL TRANCHE OF PRIVATE PLACEMENT

Kootenay Resources Inc. has closed the second and final tranche of its previously announced non-brokered private placement of non-flow-through units of the company at a price of nine cents per NFT unit and flow-through units of the company at a price of 11 cents per FT unit.

Each unit consisted of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of 15 cents, exercisable for a period of 18 months from the applicable closing date of the private placement.

The first tranche of the private placement closed on June 23, 2026.

Pursuant to the second tranche, the company issued 422,223 NFT units and 455,000 FT units for gross proceeds of $88,050.

Following completion of both tranches of the private placement, the company issued an aggregate of 2,507,223 NFT units and 3,111,590 FT units for total gross proceeds of $571,225. The company also issued an aggregate of 5,618,813 warrants, composed of: (i) 4,771,590 warrants, each exercisable to acquire one common share at a price of 15 cents until Dec. 23, 2027; and (ii) 877,223 warrants, each exercisable to acquire one common share at a price of 15 cents until Jan. 6, 2028.

All securities issued under the private placement are subject to a statutory hold period of four months in accordance with applicable Canadian securities laws. In connection with the second tranche, the company paid cash finders' fees of $4,083 to certain eligible finders on a portion of the private placement in accordance with the policies of the TSX Venture Exchange. The private placement remains subject to final acceptance of the TSX Venture Exchange.

The company intends to use the proceeds from the private placement for exploration activities on its Moyie anti-cline project, other exploration properties (eligible for Canadian exploration expenses, which are flow-through mining expenditures), working capital and general corporate purposes.

Background

Kootenay Resources' stated mission is the discovery of a Tier 1 deposit and as such focuses on those areas with demonstrated geologic potential for such deposits. The company is exploring two regions in the southeastern portion of British Columbia on its flagship Moyie anti-cline property and in central B.C. with its generative program, including several promising gold-silver-copper properties in the Nechako plateau of central British Columbia. Kootenay Resources welcomes partners for exploration projects and currently has one mineral property under option to Centerra Gold Inc. and three Nechako projects under option to fellow junior exploration company Rokmaster Resources Corp.

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 spinout of Kootenay Silver Inc., in which prospective Canadian assets were transferred to Kootenay Resources. The transaction was completed in October, 2021. Kootenay Silver currently holds 5.4 million common shares of Kootenay.

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