Kootenay Announces Highly Encouraging Assay Results From the First Two Holes on Multi-Phase Promontorio Drilling Program

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VANCOUVER, Canada, November 10, 2010 - Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay
results from the first two holes as part of a 10,000 meter, multi-phase
drilling program on its Promontorio Silver Project in Sonora, Mexico. To view
map please visit: files.newswire.ca/878/kootenaymap.pdf.

As part of a strategic program to substantially expand the known mineral
resource at Promontorio, the first four holes have been drilled along a
single fence across the western side of the Pit Zone. This fence of holes is
testing from 200 meters outside of the resource drilling into it on its
western most edge to further delineate the mineralized contacts and expand
the known mineralized area to the south. Initial results include:

    Hole PC 001: Returned grades of 33.57 g/t silver and 1.046% lead plus
    zinc over a mineralized zone measuring 93 meters, highlighted by 67.50
    meters grading 40.30 g/t silver and 1.45% lead plus zinc and 3 meters
    grading 170 g/t silver and 4.13% lead plus zinc.

    Hole PC 002: Returned grades of 38.9 g/t silver and 1.22% lead plus
    zinc over a mineralized zone measuring 151.5 meters, highlighted by
    120 meters grading 42.13 g/t silver and 1.34% lead plus zinc and 30
    meters grading 63.30 g/t silver and 2.39% lead plus zinc.

States Kootenay President and CEO James McDonald, "Results from the first
2 holes of the program have returned excellent grades and have surpassed our
expectations with respect to the overall length and continuity of the
mineralized intervals."

Adds McDonald, "Most importantly, the holes should play a vital role
expanding the known resource by tying in and establishing continuity between
previous mineralized holes drilled outside the current interpreted modeled
zones used by AGP Mining Consultants (AGP) to derive its recent 43-101
Resource Calculation on Promontorio".

View CEO Video Commentary at:
www.kootenaygold.ca/i/video/CEO/ceovideo.html

The mineralization in PC 001 was intersected precisely where expected,
while that in PC 002 indicates extensive mineralization is occurring between
50 and 100 meters south of the resource block remaining open at depth and
along strike.

Highlights of the Promontorio Pit Resource (See Aug 18, 2010 Release):*

    - Contained Silver 10,070,000 oz
    - Contained Lead 112,700,000 lbs
    - Contained Zinc 125,100,000 lbs

*Metal recoveries used for the above calculations: Ag-82%; Pb- 85%;
Zn-91%

The AGP Resource Calculation was based on only 27 of 54 drill holes
conducted on the project to date. Several extensively mineralized holes at
the time of the report were absent from the resource calculation based on the
spacing of the drill holes.

Kootenay further reports the significant gold component reported to date
has yet to be included in published resource calculations. Additional
metallurgy testing will be conducted on these holes in the near future to
determine the gold's' leachabilty and recovery and extraction methods
required.

Kootenay additionally reports, a second shift has been added to further
accelerate drilling production and development on Promontorio. Full assays
from PC 003 and PC 004 are expected before month end with subsequent holes
expected in December 2010.

QA/QC

All holes were drilled using reverse circulation. Samples were split
using riffle or rotory splitters to make representative composites. All
samples are over 1.5 meter intervals. All mineralized intercepts are drill
hole length drilled across a vertically inclined breccias system at 60 degree
angles. Quality Assurance and Quality Control procedures are posted on the
Kootenay Gold website.

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 is actively developing mineral projects in the Sierra Madre
Region of Mexico and in British Columbia, Canada. The Company flagship
property is the former producing Promontorio Silver Mine in Sonora State,
Mexico (see enclosed Map).

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

For further information:

James McDonald, CEO and President at +1-403-238-6986
Ken Berry, Chairman at +1-604-601-5652; +1-888-601-5650
www.kootenaygold.ca

For further information: James McDonald, CEO and President at +1-403-238-6986
Ken Berry, Chairman at +1-604-601-5652; +1-888-601-5650