JOINT VENTURE - Further Update on Santa Lucia Exploration

June 14, 2011

Vancouver, Canada- Kootenay Gold Inc. (TSX VENTURE: KTN.V) ("Kootenay") and Copper Creek Gold Corp. ("Copper Creek") are pleased to announce results from recent sampling at its Santa Lucia gold and silver project in Sonora, Mexico. Copper Creek has an option to earn a 60% interest in the project from Kootenay Gold Inc. by spending $2 million and making cash and share payments over a 4 year period. The property is situated approximately 200km southeast of Hermosillo, Mexico.

LA FORTUNA AREA

Recent channel sampling was performed in historical, artisanal mining pits located directly east of Trench TR11-01 which was conducted earlier this year. Sampling within the La Fortuna Norte zone has demonstrated that gold and silver bearing quartz vein and stockworking material extends for a width of approximately 200 meters in the East to West direction. This mineralized width remains untested by historical drilling and will be a key focus in the upcoming drilling program.

PIT

From

To

Width

Gold

Silver

Number

(m)

(m)

(m)

g/t

g/t

Pit-1

0.00

1.00

1.00

0.07

7.5

1.00

2.00

1.00

0.79

40.5

Pit-2

0.00

0.70

0.70

0.08

6.9

0.70

2.05

1.35

0.12

26.8

Pit-3

0.00

0.38

0.38

0.06

14.7

0.38

1.75

1.37

1.71

126.0

1.75

3.00

1.25

0.06

10.2

3.00

3.75

0.75

0.39

24.0

3.75

4.55

0.80

0.07

12.2

4.55

6.40

1.85

0.11

13.4

Pit-4

0.00

1.30

1.30

0.21

33.7

1.30

2.50

1.20

0.28

50.3

Pit-5

0.00

1.35

1.35

1.12

84.4

1.35

2.60

1.25

0.27

34.2

Select samples from vein material collected from La Fortuna Norte pits include:

Location

Grab

Northing

Easting

Gold

Silver

Area

Sample

Nad 27

Nad 27

g/t

g/t

PIT #2

J928588

3084498

653990

4.25

217.0

PIT #4

J928597

3084502

654050

6.34

161.0

CENTRAL PIT AREA

Recent channel sampling was performed on the Central Pit area collected from a trench (TR11-09) which is located approximately 75 meters directly east of Trench TR11-08 which was conducted during this year's previous trenching program.

Highlights from trench TR11-09 include a continuous 9 meter interval of gold and silver mineralization which was collected and displayed in 1 meter intervals displayed in the table below.

Trench

From

To

Width

Gold

Silver

Number

(m)

(m)

(m)

g/t

g/t

TR11-09

12.00

13.00

1.00

0.85

23.5

13.00

14.00

1.00

0.16

9.8

14.00

15.00

1.00

1.42

35.1

15.00

16.00

1.00

0.29

14.5

16.00

17.00

1.00

0.78

27.0

17.00

18.00

1.00

0.24

9.3

18.00

19.00

1.00

0.09

5.5

19.00

20.00

1.00

0.18

12.7

Select grab samples collected from the Central Pit area include:

Grab

Northing

Easting

Gold

Silver

Sample

Nad 27

Nad 27

g/t

g/t

J928255

3082728

655700

0.85

74.3

J928257

3082732

655539

1.54

110.0

J928258

3082727

655549

4.98

530.0

This data, along with other trenching data collected from earlier in the season, will be used for drill hole targeting of mineralization at depth for the Company's upcoming diamond drill program.

Drill holes at the Central zone from past operators include:

Drill hole SLC 4, drilled by Cominco Ltd., which returned 0.51 g/t Au and 27 g/t Ag over 22.95 meters with mineralization of this intercept commencing at 22.00 meters depth (from the Company's March 2011 NI43-101 report prepared by Robert Cuffney).

Management continues to conclude that exploration to date has not penetrated the boiling zone of this epithermal system.

NEWLY STAKED SOUTHERN AREA (JED AND BARDA CLAIMS)

A trenching program was completed in 2001 by Miranda Industries Ltd. on these newly staked claims to the south of our original claim block. Highlights from trenching conducted by Miranda include:

5.0 meters grading 1.98 g/t Au, 74.9 g/t Ag in trench JED #1. and 1.4 m grading 2.34 g/t Au, 39.8 g/t Ag in JED #2. (from the Company's March 2011 NI43-101 report prepared by Robert Cuffney)

A reconnaissance program was conducted on historical trenches and focused on the collection of grab samples from the immediate area. Although the trenches were mostly reclaimed, samples were collected from residual piles of disturbed trench material believed to be directly derived from the trenches. These samples collected reported grades as follows:

Location

Grab

Northing

Easting

Gold

Silver

Lead

Area

Sample

Nad 27

Nad 27

g/t

g/t

%

Trench Jed #2

J928259

3072563

654675

0.81

117.0

0.44

Trench Jed #1

J928260

3072603

654720

1.84

410.0

0.31

Trench Jed #1

J928261

3072549

654946

2.20

143.0

0.55

This area is approximately 8km south of the main mineralised areas trenched earlier this season. The Company plans to conduct follow up trenching in these areas prior to diamond drilling.

The foregoing geological disclosure has been reviewed and verified by Kristian Whitehead, P.Geo., a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects.

ABOUT KOOTENAY
Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company's flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to develop near term discoveries and long term sustainable growth. Kootenay's 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.

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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. 2011 number11

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