Target New High-Grade Zone between Pit and NE Zones

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Shares Outstanding: 62,808,850




VANCOUVER, Sept. 4, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce the next phase of drilling on its flagship
Promontorio Silver Project in Sonora, Mexico is scheduled to officially
commence Sept 12, 2013. The Company will conduct a minimum of 5,000
meters of drilling in the current phase, as part of its ongoing,
multi-phase, 2013 drill and resource expansion program on Promontorio.
Core drilling will focus on a series of high-grade silver intercepts
recently identified within a new breccia zone of silver mineralization
situated between the Pit and NE Zones. (See June 4, 2013 news release)


States Kootenay Silver President and CEO James McDonald "Supported by
recent analysis of data from our ongoing work programs, the current
phase of drilling has emerged as a much anticipated event for
Promontorio. The newly identified high-grade silver zone, situated
between the Pit and NE Zones, remains open, both peripheral to, and at
depth, to the known calculated resource. Moreover, the new zone falls
within the parameters of the Project's recently modified, single
optimized Pit model, offering potential to add substantial additional
ounces to our current silver Eqv. resource and enhance the project's
overall economics."




THE CURRENT RESOURCE ESTIMATE UTILIZES ONE LARGE OPTOMIZED PIT AS
OPPOSED TO TWO SMALLER PITS AS REPORTED IN THE AUGUST 2012 RESOURCE
ESTIMATE


The current NI 43-101 Resource Estimation conducted on Promontorio by
SRK Consulting Inc. (U.S.) of Lakewood, Colorado (See May 14, 2013 news
release), included gold assay results in the updated resource
estimation. As a result of the addition of gold, the mineral resource
is now contained in a single larger optimized Whittle Pit, as opposed
to two individual smaller pits as reported in the August 21, 2012
resource estimate. The decision to include gold in the resource
estimation follows extensive metallurgical testing and technical
analysis conducted by ALS Minerals of Kamloops, British Columbia that
confirmed up to 94.5% recovery of gold from pyrite concentrates from
the Promontorio resource can be achieved using a post pressure
oxidation treatment process.


Current NI 43-101 Compliant Silver Resource


The current mineral estimate on Promontorio effective date March 31,
2013 (See May 14, 2013 news release) contains a combined Measured and
Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In
addition to the measured and indicated silver resources, there are an
additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb,
109.1M lb's Zn). Measured and Indicated resources are contained in open
pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag,
0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of
215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89
gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn). Inferred resources are within
open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt
silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and
resources outside of the open pit of 1,265,000 tonnes grading an
average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and
0.74% Pb+Zn).


The foregoing geological disclosure has 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.


The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.


Forward-Looking Statements: The information in this news release has been prepared as at September
3, 2013. Certain statements in this news release, referred to herein
as "forward-looking statements", constitute "forward-looking
statements" under the provisions of Canadian provincial securities
laws. These statements can be identified by the use of words such as
"expected", "may", "will" or similar terms.


Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by Kootenay
as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Many factors, known and unknown, could cause actual
results to be materially different from those expressed or implied by
such forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date made. Except as otherwise required by law, Kootenay
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change
in Kootenay's expectations or any change in events, conditions or
circumstances on which any such statement is based.


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.



SOURCE: Kootenay Silver Inc.



For further information:



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

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

or visit: http://www.kootenaysilver.com/">www.kootenaysilver.com