🕐10.11.10 - 15:54 Uhr

Kootenay Announces Highly Encouraging Assay Results From the First Two Holes on
Multi-Phase Promontorio Drilling Program





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Kootenay Announces Highly Encouraging Assay Results From the First Two Holes on Multi-Phase Promontorio Drilling Program

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Vancouver, Canada-Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from the first two holes as part of a 10,000 meter, multi-phase drilling program on its Promontorio Silver Project in Sonora, Mexico.

As part of a strategic program to substantially expand the known mineral resource at Promontorio, the first four holes have been drilled along a single fence across the western side of the Pit Zone. This fence of holes is testing from 200 meters outside of the resource drilling into it on its western most edge to further delineate the mineralized contacts and expand the known mineralized area to the south. Initial results include:

Hole PC 001: Returned grades of 33.57 g/t silver and 1.046% lead plus zinc over a mineralized zone measuring 93 meters, highlighted by 67.50 meters grading 40.30 g/t silver and 1.45% lead plus zinc and 3 meters grading 170 g/t silver and 4.13% lead plus zinc.

Hole PC 002: Returned grades of 38.9 g/t silver and 1.22% lead plus zinc over a mineralized zone measuring 151.5 meters, highlighted by 120 meters grading 42.13 g/t silver and 1.34% lead plus zinc and 30 meters grading 63.30 g/t silver and 2.39% lead plus zinc.

States Kootenay President and CEO James McDonald, "Results from the first 2 holes of the program have returned excellent grades and have surpassed our expectations with respect to the overall length and continuity of the mineralized intervals".

Adds McDonald, "Most importantly, the holes should play a vital role expanding the known resource by tying in and establishing continuity between previous mineralized holes drilled outside the current interpreted modeled zones used by AGP Mining Consultants (AGP) to derive its recent 43-101 Resource Calculation on Promontorio".

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The mineralization in PC 001 was intersected precisely where expected, while that in PC 002 indicates extensive mineralization is occurring between 50 and 100 meters south of the resource block remaining open at depth and along strike.

Highlights of the Promontorio Pit Resource (See Aug 18, 2010 Release):*

Contained Silver 10,070,000 oz Contained Lead 112,700,000 lbs Contained Zinc 125,100,000 lbs

*Metal recoveries used for the above calculations: Ag-82%; Pb- 85%; Zn-91%

The AGP Resource Calculation was based on only 27 of 54 drill holes conducted on the project to date. Several extensively mineralized holes at the time of the report were absent from the resource calculation based on the spacing of the drill holes.

Kootenay further reports the significant gold component reported to date has yet to be included in published resource calculations. Additional metallurgy testing will be conducted on these holes in the near future to determine the gold�s� leachabilty and recovery and extraction methods required.

Kootenay additionally reports, a second shift has been added to further accelerate drilling production and development on Promontorio. Full assays from PC 003 and PC 004 are expected before month end with subsequent holes expected in December 2010.

QA/QC
All holes were drilled using reverse circulation. Samples were split using riffle or rotory splitters to make representative composites. All samples are over 1.5 meter intervals. All mineralized intercepts are drill hole length drilled across a vertically inclined breccias system at 60 degree angles. Quality Assurance and Quality Control procedures are posted on the Kootenay Gold website.

The foregoing geological disclosure has also been reviewed and verified by Kootenays 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 is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company flagship property is the former producing Promontorio Silver Mine in Sonora State, Mexico (see enclosed Map).

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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 SECs 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. 2010 number 25

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