PROMONTORIO - Filing of NI 43-101 Technical Report on Promontorio Silver Project in Sonora, Mexico

October 5, 2012

Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce that it has filed a technical report prepared in accordance with National Instrument 43-101 ("NI 43-101") in support of the Company's August 21, 2012 news release, which included a mineral reserve estimate at its Promontorio Silver Project in Sonora, Mexico.

The independent technical report, entitled "NI 43-101 Technical Report on Resources, Promontorio, Mexico" (the "Technical Report"), dated October 4, 2012, effective date of July 31 2012, was prepared by SRK Consulting (U.S.) Inc. of Lakewood, Colorado ("SRK"). The Technical Report was authored by Jeffrey Volk, CPG, FAusIMM, MSc and Eric Olin, MSc, MBA, RM-SME all Qualified Persons as defined by, and independent of Kootenay, for the purposes of NI 43-101 requirements and who have prepared or supervised the preparation of the scientific and technical information contained herein. The Technical Report is available on SEDAR at www.sedar.com and will be available on the Company's website www.kootenaysilver.com.

The foregoing geological disclosure has also 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

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

For additional information, please contact:



James McDonald, CEO and President
at 403-238-6986

Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

or visit: www.kootenaysilver.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.



This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.