Resource World Magazine

KOOTENAY SILVER INC. [KTN-TSXV] Market Capitalization..........$50,191,080 Shares Outstanding............... 62,738,850 52-week high-low................$1.25-$0.62 Commodity............................polymetallic CEO.............................. James McDonald Region.......................................... Mexico Focused on Developing the Harper Creek Copper-Gold-Silver Deposit in British Columbia Detailed Feasibility Study completed March 2012, restated and amended January 2013 Kootenay Silver Inc. has mineral projects in Mexico and British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in the Sierra Madre region of Sonora State, Mexico. The company recently closed a $4,750,000 private placement with Agnico-Eagle Mines Ltd. [AEM-TSX, NYSE]. An aggregate of 6,250,000 units at $0.76 per unit were issued to Agnico-Eagle with each unit comprising one share and one-half of one warrant. Each warrant entitles Agnico-Eagle to acquire one share at an exercise price of $1.08. AgnicoEagle now owns 9.96% of Kootenay's issued and outstanding shares on a non-diluted basis (14.23% if Agnico-Eagle exercises all of the warrants). In May, Kootenay Silver released an updated resource estimate for Promontorio prepared by SRK Consulting (US) Inc. which translated the values of silver, gold, lead and zinc into silver equivalents. The open pit for the project stands at 44,504,000 tonnes averaging 64.32 g/t silver equivalent (AgEq) classified as measured and indicated, with an additional 14,564,000 tonnes averaging 51.95 g/t AgEq as inferred. This resource is stated above a 20.00 g/t AgEq cut-off grade and is contained within a potentially, economically mineable pit shell. Underground resources are approximately 215,000 tonnes averaging 56.96 g/t AgEq classified as measured and indicated, with an additional 1,265,000 tonnes averaging 61.17 g/t AgEq inferred. This resource is stated above a 45.00 g/t AgEq cut-off grade to reflect the higher mining costs expected to be associated with underground production. The updated measured and indicated resource contains an estimated 92,035,000 oz AgEq with another 24,326,000 oz AgEq categorized as inferred. JULY 2013 • Total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu (0.14% Cu cut-off ), 0.029g/t Au and 1.14g/t Ag • Estimated production over life-of-mine: 3.63 billion lbs Cu, 372,000 oz Au and 14 million oz Ag contained in concentrate. • Estimated after tax NPV8 $465.3 million, IRR 17.0%; based on metal prices of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and 0.86:1 US/CDN exchange rate • Mine life 28 years at a milling rate of 70,000 tonnes/day • Stripping ratio 0.81:1 life-of-mine • Capital costs are estimated at C$838.95 million in Q4 2011 dollars, including contingency • Adjacent rail, road, power and town infrastructure • Project is 100% owned by Yellowhead Mining* • Senior management has extensive international experience with large scale open pit copper projects • Excellent potential to significantly expand the resource * Subject to 3% NSR royalty capped at $2,500k, adjusted for inflation, plus a further 2.5% NSR royalty on approximately 1.5 million tonnes of ore which is expected to be mined beginning in year 16 of the mine plan. Ronald Handford, Executive Vice President, Corporate Development T: 604.681.1709 info@yellowheadmining.com www.yellowheadmining.com TSX: YMI OTCQX: YHMGF Resource World - one third page square: 4.875"W x 4.7"H Tech: sharon@xy3design.com 604-925-9232 Resourceful. McKercher LLP has a specialized and resourceful team of lawyers and support staff dedicated to providing advice to local and international clients from a wide variety of industries. Our experience spans matters such as specialized mining & corporate agreements, immigration, large scale acquisitions & dispositions, financing, construction & regulatory issues, First Nations & government relations, and litigation. SASKATOON 306.653.2000 REGINA 306.565.6500 BARRISTERS & SOLICITORS www.mckercher.ca www.resourceworld.com 23

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