Kootenay Drills 237 gpt Silver eqv over 51m, Including 526.2 gpt Silver eqv over 18 m; Step Out Holes Return Multiple High Grade Silver Intercepts Across a 1 Kilometer Corridor

Shares Outstanding: 44,373,100

VANCOUVER, April 4, 2011 - Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay
results from an additional 10 drill holes as part of a 10,000 meter, ongoing,
multi-phase drilling program on its Promontorio Silver Project in Sonora,
Mexico.

    Drilling Highlights Extend the Mineralized Zone to Over 1 Km in Length:

               From     To Interval Silver Lead  Zinc  Silver
    Drill Hole  (m)    (m)   (m)    (g/t)   (%)   (%)  (eqv*)
    PC-020-11   3.0   10.5   7.5    145.4  0.211 0.305 167.4
    PC-020-11  39.0   48.0   9.0    264.7  0.398 0.594 307.1
    PC-023-11  28.5   31.5   3.0    205.5  0.759 0.817 273.1
    PC-024-11  183.0 189.0   6.0     63.8  0.232 0.409  91.0
    PC-025-11  174.0 177.0   3.0    157.0  0.509 0.585 203.9
    PC-025-11  193.5 195.0   1.5    190.0  0.625 0.406 234.6
    PC-028-11  132.0 183.0   51.0    91.3  0.928 2.514 237.0
     including 133.5 151.5   18.0   188.0  2.256 5.726 526.2

    *Prices used to calculate silver eqv.: Ag $15/oz; Zn $.91/lb; Pb $.97 lb

Drill holes encountered consistent, widespread silver mineralization and
multiple high-grade silver intercepts in Promontorio's newly extended
Northeast and Southwest Zones, which sit outside of the current 43-101 Pit
Resource. (To view map please visit:
www.kootenaygold.ca/i/projects/Promontorio/drillingupdate20110304.pdf)

States Kootenay CEO James McDonald "We are very pleased and enthused with
current results from the 10,000 meter drilling program and believe our
objective of building Promontorio into a significant mining entity is coming
into focus".

"We are consistently hitting high and medium grade silver mineralization
to the North East of our Pit Resource expanding the North East Zone to over
300 meters, which is double the strike length of our current 43-101 silver
resource. Moreover, widely spaced step out holes have encountered multiple,
high grade silver intercepts confirming the exciting upside potential of the
entire 1.0 kilometer long mineralized corridor at Promontorio" Adds McDonald.

New Discovery Zone

Step out drilling on broad 100 meter spaced holes returned significant
intercepts of silver mineralization along Promontorio's entire 1.0 kilometer
trend. A new high priority zone of high-grade silver mineralization was
discovered in the Pit NE zone between the Pit Resource and the Northeast
Zone, remaining open on strike and to depth.

Kootenay reports RC drilling is closing in on the final holes of the
current 10,000 meter program. In keeping with the Company's aggressive
strategy to begin further expanding its growing silver resource, Kootenay
recently added a diamond drill rig on Promontorio to test the deposit at
depth where previous drilling bottomed out in silver mineralization and to
further establish the general geometry of the mineralization.

Based on highly encouraging results achieved from the program thus far,
Kootenay further announces the Company is planning a greatly expanded program
of aggressive, closely spaced, in-fill drilling to tie in multiple zones of
widespread silver mineralization present Northeast and Southwest of the
43-101 Pit Discovery Zone in preparation for a new Independent Resource
Calculation. Details of the new expansive program on Promontorio will be
forthcoming in a future release.

Table of the full results follows:

The North East Zone consistently returned medium and high-grade
intercepts in broadly spaced holes and extend the strike length to over 300
meters. Silver values are consistently in the range of 70 to 200 gpt Ag
within the North East Zone. Highlights include:

    - PC 28:
    - 18 meters of 188 gpt Ag, 0.89 gpt Au, 7.98% Pb-Zn within:
    - 51 meters 98 gpt Ag, 1.28 gpt Au, 3.44% Pb-Zn bottoming in
      mineralization.
    - PC 25
    - 3 meters of 157 gpt Ag, 0.99 gpt Au, 1.09% Pb-Zn with
    - 25.5 meters of 38 gpt Ag, o.46 gpt Au, 0.31% Pb-Zn
    - PC 24
    - 6 meters of 63 gpt Ag, 0.43 gpt Au, 0.641% Pb-Zn

    Highlights of previously announced holes in the same zone:
    - KP 81
    - 16.5 meters of 144 gpt Au, 0.88 gpt Au, 1.97% Pb-Zn including:
    - 4.5 meters of 364 gpt Ag, 1.26 gpt Au, 2.91% Pb-Zn
    - KP 80
    - 29 meters of 78 gpt Ag, 1.17 gpt Au, 1.43% Pb-Zn
    - KP 83
    - 9 meters of 100 gpt Ag, 1.21 gpt Au, 0.72% Pb-Zn
    - KP 40
    - 33.5 meters of 70.9 gpt Ag, 0.83 gpt Au, 0.766% Pb-Zn

Holes PC 28and 26 bottomed in mineralization and will be continued with
core drilling. Holes PC 24, 25 and 27 did not reach target depth and will
also be continued with core drilling.

A new zone of high-grade mineralization has been discovered in the Pit NE
zone between the Pit Resource and the Northeast Zone (NE Zone). Here holes PC
18, 20 and 23 encountered shallow mineralization grading:

    - PC 18 (previously released)
    - 10.5 meters of 149 gpt Ag, 1.1 gpt Au, 1.48% Pb-Zn from 115 meters
    - PC 20
    - 7.5 meters of 145 gpt Ag, 0.39 gpt Au, 0.59% Pb-Zn from 3 meters
    - 9 meters of 265 gpt Ag, 0.13 gpt Au, 0.99% Pb-Zn from 39 meters
    - PC 23
    - 3 meters of 206 gpt Ag, 0.28 gpt Au, 1.58% Pb-Zn from 28 meters

Note: Metallurgical testing previously released indicates recoveries of
82% for Ag, 85% for Pb and 91% for Zn. It was found that gold reported to the
pyrite concentrate and requires a secondary oxidation process to extract and
so was not included in the resource estimate. Metallurgical testing outside
the resource has not been conducted so it is not known if gold outside the
resource area could be economically recoverable. Additional metallurgical
testing will be required.

    Remaining holes:
    - PC 21
    - Anomalous silver mineralization
    - PC 22
    - 22.5 meters of 14.3 gpt Ag, 0.40 gpt Au, 0.50 % Pb-Zn
    - PC 26
    - 15 meters 17 gpt Ag, 0.32 gpt Au, 0.79% Pb-Zn
    - PC 27
    - Anomalous silver mineralization

    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

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.

QA/QC

All holes were drilled using reverse circulation. Samples were split
using riffle or rotary 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 Gold is actively developing mineral projects in the Sierra Madre
Region of Mexico and in British Columbia, Canada. The Company's flagship
property is the former producing Promontorio Silver mine in Sonora State,
Mexico. The Company's objective is to develop near term discoveries and long
term sustainable growth. Kootenay's 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.

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
    or visit: 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