Drilling Success Continues at Promontorio as Kootenay Hits 205 meters of 117 gpt Silver Equivalent in Step-Out Drilling in Southwest Zone

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from the first seven holes of its ongoing 25,000 meter multi-phase drilling program on its Promontorio Silver project in Sonora, Mexico.

Results include three holes (DH 54 to 56) of in-fill drilling of the Pit Resource and four holes (DH 58 to 61) into the Southwest Zone outside of the Pit Resource designed to confirm continuity between the two mineralized areas. Results from the first seven holes demonstrate widely disseminated Zones of silver mineralization extend beyond current resource boundaries and continuation of higher grades within the Pit Resource.

States Kootenay President and CEO James McDonald "We are very pleased with results from the first seven holes of our 25,000 meter drill program. Not only is diamond drilling continuing to hit higher grades of silver at depth where previous drilling bottomed out in silver mineralization within the Pit resource itself, equally important to our resource expansion program, we are seeing continuity of silver mineralization developing in the Southwest Zone from step-out drilling that returned impressive intervals and grades of widespread silver mineralization extending to depth".

Highlights from the seven holes include:

DH 54

• 80 gpt Silver Equivalent over 103 meters including 105 gpt Silver Equivalent over 68 meters.
• DH 54 tested 120 meters down dip of DH 53 (146 gpt Silver Equivalent over 234 meters announced May 31, 2011).

DH 56

• 116 gpt Silver Equivalent over 251 meters including 186 gpt Silver Equivalent over 66 meters.
• DH 56 is on section with DH 55 and 57 and is in-fill drilling of the Pit Resource and an approximate 25 meter step out to the Northeast of DH 53 and 54.

DH 61

• 96 gpt Silver Equivalent over 182 meters including 290 gpt Silver Equivalent over 24 meters.
• DH 61 drilled outside of the Pit Resource shows mineralization continuing about 50 meters into the Southwest Zone.
• DH 58, 59 and 60 are on section with DH 61.

DH 60

• 71 gpt Silver Equivalent over 107 meters including 237 gpt Silver Equivalent over 12 meters.
• 85 gpt Silver Equivalent over 58 meters with 129 gpt Silver Equivalent over 23 meters in a second deeper interval.

DH 58

• 117 gpt Silver Equivalent over 205 meters including 169 gpt Silver Equivalent over 50 meters and 152 gpt Silver Equivalent over 48 meters.

*See initial 25,000 meter drill highlights below - Visit www.kootenaygold.ca for complete Drill Results and Map

Outlined in the following table are the full results:

Hole ID	Target	From (m)		To (m)		Interval (m)		Ag (gpt)		Pb (%)		Zn (%)			Pb+Zn (%)
DH-054-11	Pit In-fill/SW Extension	269.00		280.00		11		17		0.38		0.35			0.73
DH-054-11	Pit In-fill/SW Extension	334.00		437.00		103		26		0.39		0.88			1.28
including	Pit In-fill/SW Extension	351.00		419.00		68		32		0.49		1.21			1.71
DH-054-11	Pit In-fill/SW Extension	535.00		537.00		2		41		0.93		0.01			0.95
DH-054-11	Pit In-fill/SW Extension	615.00		621.00		6		29		0.00		0.01			0.01
DH-055-11	Pit In-fill	92.00		94.00		2		149		2.51		4.06			6.57
DH-055-11	Pit In-fill	143.00		189.00		46		36		0.57		0.67			1.24
including	Pit In-fill	173.00		185.00		12		58		0.83		1.14			1.97
DH-055-11	Pit In-fill	282.00		288.00		6		86		1.29		0.99			2.28
DH-055-11	Pit In-fill	314.00		320.00		6		43		0.38		0.46			0.84
DH-056-11	Pit In-fill	73.00		93.00		20		52		0.00		0.01			0.01
DH-056-11	Pit In-fill	156.00		407.00		251		47		0.78		0.82			1.60
including	Pit In-fill	259.00		325.00		66		77		1.29		1.24			2.54
DH-058-11	Pit SW Extension	132.00		337.00		205		49		0.76		0.83			1.59
including	Pit SW Extension	156.00		204.00		48		62		0.91		1.20			2.11
including	Pit SW Extension	230.00		280.00		50		74		1.15		1.06			2.21
DH-058-11	Pit SW Extension	347.00		352.00		5		50		1.03		0.93			1.96
DH-058-11	Pit SW Extension	364.00		371.00		7		43		0.80		0.82			1.61
DH-059-11	Pit SW Extension	114.00		174.00		60		21		0.21		0.24			0.45
including	Pit SW Extension	147.00		149.00		2		166		1.96		2.11			4.06
including	Pit SW Extension	171.00		174.00		3		67		0.71		0.90			1.61
DH-059-11	Pit SW Extension	214.00		269.00		55		13		0.17		0.15			0.33
including	Pit SW Extension	266.00		269.00		3		63		1.05		0.49			1.53
DH-060-11	Pit SW Extension	94.00		201.00		107		31		0.40		0.52			0.92
including	Pit SW Extension	153.00		165.00		12		116		1.15		1.68			2.83
DH-060-11	Pit SW Extension	245.00		258.00		13		116		2.00		1.91			3.91
DH-060-11	Pit SW Extension	280.00		338.00		58		35		0.58		0.58			1.16
including	Pit SW Extension	284.00		307.00		23		51		0.89		0.92			1.81
DH-061-11	Pit SW Extension	157.00		161.00		4		43		0.60		0.64			1.23
DH-061-11	Pit SW Extension	178.00		217.00		39		34		0.52		0.62			1.14
DH-061-11	Pit SW Extension	279.00		375.00		96		72		1.27		1.30			2.58
including	Pit SW Extension	318.00		342.00		24		114		2.01		2.09			4.10
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag dollars/oz	$15.00
Zn dollars/lb	$0.91
Pb dollars/lb	$0.97

At present three diamond drill rigs are operating on Promontorio with two stepping out in a systematic manner outside of the Pit Resource to the Southwest and Northeast. The third rig is working on stepping out from PC 28 in the Northeast Zone which previously bottomed in 237 gpt Silver Equivalent over 51 meters. (See news release April 4, 2011). PC 28 sits 700 meters outside and on strike to the current 43-101 Pit Resource.

The Company reports 10 additional drill holes have been completed with samples sent to the lab for assaying. Three additional holes are currently in progress on Promontorio.

Upcoming drilling will continue to concentrate on step out and in-fill drilling offsetting the numerous silver intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the Pit Resource, Pit NE Zone, Northeast Zone and Southwest Zone.

The current 25,000 meter in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted by Kootenay on the Promontorio Silver project to date.

Updated NI 43-101 Resource Calculation to Commence at Conclusion of Program

Kootenay reports an updated NI 43-101 resource calculation on Promontorio is planned to commence at the conclusion of the program. In anticipation of further advancing the development of Promontorio, the Company reports preliminary work for baseline, further metallurgical and scoping studies will be initiated concurrent with the drilling program.

QA/QC

All holes reported here were drilled with HQ sized diamond drill core with some sections reduced down to NQ sized core. Core samples were cut using a core saw with 1 to 2 meter long sample intervals. All mineralized intercepts are drill core length drilled across a vertically inclined breccia system at angles of 45 to 70 degrees. Dimensions of the breccia system are being determined. The current resource sits approximately along 140 meters of strike by 60 meters of horizontal width in a range of 20 to 90 meters and to a 400 meter depth. Further Quality Assurance and Control procedures are posted on the Kootenay Gold Inc. website.

The foregoing geological disclosure has also been reviewed by Mr. James McDonald, P. Geo (a qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. McDonald is the President and CEO and a director of Kootenay.

Source: Kootenay Gold