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KOOTENAY SILVER CLOSES BROKERED PUBLIC OFFERING FOR GROSS PROCEEDS OF C$10.35 MILLION

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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, April 25, 2024 /PRNewswire/ -- Kootenay Silver Inc. ("Kootenay" or the "Company") (TSXV: KTN) is pleased to announce that the Company has completed its previously announced and upsized "best efforts" public offering (the "Offering") for gross proceeds of C$10,350,000 from the sale of 9,241,071 units of the Company (each, a "Unit") at a price of C$1.12 per Unit (the "Offering Price"). The completed Offering includes the exercise in full of the Agents' (as defined herein) over-allotment option for the sale of 1,205,357 Units for proceeds of C$1,350,000.

Kootenay Silver Inc. logo (CNW Group/Kootenay Silver Inc.)
Kootenay Silver Inc. logo (CNW Group/Kootenay Silver Inc.)

Each Unit consists of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall entitle the holder to purchase one Common Share of the Company at a price of C$1.68 at any time on or before April 25, 2026.

The Offering was conducted by Red Cloud Securities Inc., acting as lead agent and sole bookrunner, and Research Capital Corporation (collectively, the "Agents"). In connection with the Offering, the Company paid the Agents a cash commission of C$591,000 and issued to the Agents 527,678 Common Share purchase warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder thereof to acquire one Common Share at a price of C$1.12 per Common Share at any time on or before April 25, 2026. The Company also paid aggregate cash finder's fees of $28,380.24 to certain arm's length finders in connection with Units purchased by certain president's list purchasers.

The Offering was completed pursuant to a prospectus supplement of the Company filed in all of the provinces of Canada and dated April 17, 2024 that supplemented the short form base shelf prospectus of the Company dated March 27, 2024. The Offering remains subject to the final approval of the TSX Venture Exchange (the "TSX-V").

The net proceeds raised under the Offering will be used for the advancement of the Company's Columba Silver Project in Mexico as well as for general working capital and corporate purposes.

The securities offered pursuant to the Offering have not been, nor will they be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.