Quality Silver Assets are Scarce
.....We Have Several

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from an additional seven holes of its ongoing 25,000 meter, multi-phase in-fill drill and resource definition program on its Promontorio Silver project in Sonora, Mexico.

Results to date demonstrate drilling has established continuity of silver mineralization between the Southwest expansion zone and the Pit Resource, extending a further 100 meters westward beyond current resource boundaries down dip and along strike. These two areas now represent one continuous mineralized zone for a minimum strike length of 240 meters, remaining open on strike and at depth.

States Kootenay President and CEO James McDonald "Results from the 25,000 meter program continue to meet or exceed our expectations. The establishment of continuity of silver mineralization between the Southwest Zone and the Pit Resource is a milestone development for Promontorio and will undoubtedly play a critical factor in our future resource expansion. Further supporting our resource growth initiatives, we continue to hit high silver grades in wide zones of hydrothermal breccia in the emerging Northeast Zone, which sits a full 700 meters outside of and on strike to the current 43-101 resource."

At present, three diamond drill rigs are currently operating on Promontorio with two stepping out in a systematic manner outside of the Pit Resource to the southwest and northeast. The third rig is working on stepping out from PC 28 in the Northeast Zone.

The current 25,000 meter in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.

Upcoming drilling will continue to focus on step out and in-fill drilling off setting the numerous medium to high grade silver intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the Pit Resource, Pit NE Zone, Northeast Zone and Southwest Zone.

Highlights are as follows:

Southwest Zone

DH 80

• A big step out down dip returns 83 meters of 166.2 gpt Silver Equivalent (58.2 gpt Ag and 2.52% Pb+Zn)
• Includes 329 gpt Silver Equivalent (111 gpt Ag and 5.11% Pb+Zn) over 6 meters
• On section with DH 67* and 68* and 100 meters down dip of DH 68* that returned 149 meters of 146 Silver Equivalent (60 gpt Ag and 2.0% Pb+Zn)
• Hosted in hydrothermal breccia in intrusive host rock showing all rock types to be mineralized by a large hydrothermal breccia complex

• Shows width increase and overall grade increase of 96 meters grading 108 gpt Silver Equivalent (42 gpt Ag and 1.53% Pb+Zn) down dip of DH 71
• Includes higher grades of 247 gpt Silver Equivalent over 7 meters (99 gpt Ag and 3.45% Pb+Zn)
• On section with DH 71* about 90 meters beyond the Pit Resource boundary in the Southwest Zone
• DH 72 and 71* show good correlation with holes D 67* and 68* where grades and widths also improve down dip
• Second deeper interval with 77 gpt Silver Equivalent over 61 meters (33 gpt Ag and 1.04% Pb+Zn)
• Includes 233 gpt Silver Equivalent (101 gpt Ag plus 3.09% Pb+Zn) over 7 meters

• About 120 meters beyond Pit Resource in Southwest Zone
• First of a fence of holes with similar results to DH 71
• 4 mineralized composites in a 189 meter interval
• 66 meters grading 65 gpt Silver Equivalent (33 gpt Ag and 0.94% Pb+Zn) including 19 meters grading 100 gpt Silver Equivalent (36 gpt Ag and 1.51% Pb+Zn)

DH 76

• An 88 meter intercept which bottomed in mineralization
• An infill hole testing the eastern extent of the Pit Resource that shows potential increase in width of mineralized zone
• 88 meters grading 73 gpt Silver Equivalent (28 gpt Ag and 1.03 % Pb+Zn)

DH 74

• More high grade with 263 gpt Silver Equivalent (112 gpt Ag and 3.54% Pb+Zn) over 12 meters
• Includes 562 gpt Silver Equivalent (227 gpt Ag and 7.85% Pb+Zn) over 5 meters
• 25 meter step out northeast along strike of section DH 65 ,66 and 78 where DH 66 hit 39 meters of 309 gpt Silver Equivalent (128 gpt Ag and 4.25% Pb+Zn)

• 135 meters of mineralization with 4 composited intercepts such as 50 meters of 61 gpt Silver Equivalent (26 gpt Ag and 0.82% Pb+Zn)
• Includes 102 gpt Silver Equivalent (46 gpt Ag and 1.30% Pb+Zn) over 13 meters
• Ranges from 30 to 80 meters down dip of high grade hole DH 66

The following table shows the full results:

QA/QC

All holes reported here were drilled with HQ sized diamond drill core with some sections reduced down to NQ sized core. Core samples were cut using a core saw with 1 to 2 meter long sample intervals. All mineralized intercepts are drill core length drilled across a vertically inclined breccia system at angles of 45 to 70 degrees. Dimensions of the breccia system are being determined. The current resource sits approximately along 140 meters of strike by 60 meters of horizontal width in a range of 20 to 90 meters and to a 400 meter depth. Further Quality Assurance and Control procedures are disclosed on the Kootenay Gold Inc. website.

The foregoing geological disclosure has also been reviewed by James McDonald, P. Geo (a qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. McDonald is the President and CEO and a director of Kootenay.

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.

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 number 19