Kootenay Silver's Profile

Kootenay Silver Inc.. Vancouver, B.C. TSX.V : KTN, is an exploration and mining Company focused on the exploration and development of its top priority Promontorio Silver Project situated within the mineral rich Sierra Madre trend of Mexico.

• Create value through discovery and development
• Target large scale precious metal deposits
• Focus on Canada and Mexico
• Promontorio target: 100+ million oz silver deposit (plus gold, lead & zinc)
• Jumping Josephine target: 1 million oz gold deposit

Encouraging results from Phase I & II drilling on the Promontorio suggests the possible existence of a large Porphyry system similar to major producing deposits within the region.

During 2008, Kootenay has raised ~$24 million. The treasury remains strong throughout current market conditions, holding ~$19 million in cash, enabling management to fast track exploration at Promontorio and expand its current drill program to 45,000 meters.

The company’s portfolio includes seven properties in Canada and more than 500,000 hectares containing 30 priority targets in Mexico.

To maximize Kootenay’s exposure to new discoveries and fast-track development, the company has entered into a number of key joint ventures.

The most advanced being the Jumping Josephine, B.C., where drilling has defined a gold bearing structure 900 m long by 12m width by 225m depth which is open in all directions.

In addition to maximizing exploration expenditures, these strategic partnerships serve to minimize dilution for shareholders as the Company advances its flagship Promontorio Silver project.

Drilling on Promontorio continues to encounter widespread, high-grade mineralization to a depth of 444 metres. The additional 100+ holes will test a large 1.6 km 3D IP Anomaly identified on the project and newly discovered mineralized zones in the surrounding 90,000 hectare property.

Kootenay’s experienced exploration team has made multiple exploration discoveries during the last four years in the Rossland Republic Trend of British Columbia and the Sierra Madre Trend of Mexico.

$12 MILLION IN JOINT VENTURE EXPENDITURES PLUS SHARE PAYMENTS

1. Results in minimized dilution to Kootenay
2. Increases exploration dollars spent on portfolio of properties
3. Leverages success of exploration by holding shares in partner company
4. Generates future sustainable growth

• Jumping Josephine CAN Earned in 60% 400,000 AST C$2,100,000
• Connor Creek CAN JV to earn 50% 400,000 AGX C$1,000,000
• Chenier CAN JV to earn 60% 700,000 AST C$2,000,000
• Murphy CAN JV to earn 60% 650,000 ABB C$2,000,000
• Santa Lucia MEX JV to earn 50% 500,000 KS US$1,000,000
• Ofelia MEX JV to earn 50% 500,000 KS US$1,000,000
• Suzanne MEX JV to earn 50% 500,000 KS US$1,000,000
• Los Chinos MEX JV to earn 50% 500,000 KS US$1,000,000
• Espiritu MEX JV to earn 50% 500,000 KS US$1,000,000
• Cerro Colorado MEX JV to earn 50% 500,000 KS US$1,000,000
• El Alamos MEX JV to earn 50% 500,000 KS US$1,000,000