Metallurgical Testing on Diatreme Hosted Promontorio Silver Resource Indicates Gold Within Pyrite Can be Effectively Recovered Through Post Pressure Oxidation Treatment

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VANCOUVER, Feb. 28, 2013 /CNW/ - Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from preliminary metallurgical testing conducted by ALS Minerals of Kamloops, British Columbia on the gold component contained within the diatreme hosted Promontorio Silver resource. Results from the ALS gold extraction tests show that recovery of gold from the Promontorio resource is possible using post pressure oxidation. After pressure oxidation 94.5% of the gold was extracted from pyrite concentrate.

The economics and capital costs of recovering the gold using pressure oxidation/cyanidation will require further evaluation. The Company reports an additional test is now underway to assess the gold recovery with partial oxidation of the pyrite concentrate of approximately 50%.

States Kootenay President and CEO James McDonald "The results from this metallurgical testing is a positive development as the Promontorio resource and mineral system contains a substantial amount of gold that has yet to be factored into any of our resource calculations. While additional work is required to assess the economics and capital costs of oxidation, and what the potential net benefits would be, these results are a promising first step, as we continue to assess the gold component at Promontorio."

The testing was conducted on a pyrite concentrate derived from flotation testing completed at ALS Minerals in Kamloops British Columbia. The pyrite concentrate had a gold head assay of about 3.0 gpt and about 98% of the pyrite was oxidized.

The pyrite concentrate was treated through a batch pressure oxidation testing unit at about 200 degrees Celsius and a pressure of 2000 kPa for 2 hours. Post oxidation the residue was further treated through a standard bottle roll cyanidation test. After 48 hours of direct cyanidation leaching 94.5 % of the gold contained in the pressure oxidation residue was leached into the solution phase. This preliminary test indicates that the gold in the pyrite concentrate can be effectively recovered through post pressure oxidation treatment.

The Company reiterates it is important to note that the economics and capital costs of recovering the gold contained within the Promontorio Silver Project using pressure oxidation/cyanidation will require further evaluation and assessment, which is currently underway on Promontorio.

The foregoing geological disclosure has also 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or 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.

This press release may use 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.