Step Out Drilling on Promontorio Intercepts 92 meters of 147 gpt Silver Equivalent (56 gpt Ag, 2.11% Pb+Zn) Extending the Southwest Zone 100 Meters Down Dip. Includes 5 Meters of 378 gpt Silver Equivalent (174 gpt Ag, 4.72% Pb+Zn)

VANCOUVER, Canada, September 15, 2011 -

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Shares Outstanding: 45,013,100 

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from the an additional 6 holes of its ongoing 25,000 meter multi-phase drilling program on its Promontorio Silver project in Sonora, Mexico.

Three diamond drill rigs are currently 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.

States Kootenay President and CEO James McDonald, “We continue to hit excellent intervals and grades of silver mineralization at depth in the Pit Resource, to the southwest and to the northeast. Moreover, assays show excellent continuity of silver mineralization between the Pit Resource and the Southwest Zone, further supporting the Company’s resource expansion model that the SW Zone and Pit Resource form one large and continuous zone.”

“Additionally, the first follow up holes to PC 28*, Northeast of the Pit Resource, intercepted multiple zones of silver mineralization including medium to high-grades in the Northeast Zone, where previously drilled, widely spaced holes defined a 300 meter strike length, which is double the strike length of Promontorio’s established NI 43-101 Pit Resource, which bodes exceptionally well for additional resource expansion potential in the Northeast Zone.” Adds McDonald (*See April 4, 2011 News Release)

Highlights from the latest results include:

Southwest and Pit Zone Area

DH 62

• Step out on section
• Returns 147 gpt Ag Equivalent over 92 meters including 5 meters of 378 gpt Ag Equivalent.
• Mineralization extends 100 meters further down dip from previously released DH 61 which returned 96 gpt Ag Equivalent over 182 meters including 290 gpt Ag Equivalent over 24 meters.
• Hole shows significant potential for new resources at depth.

DH 67

• Two separate intervals over 40 meters in core length
• 161 gpt Ag Equivalent over 41 meters including 14 meters of 342 gpt Ag Equivalent
• 45 gpt Ag Equivalent over 45 meters including 165 gpt Ag Equivalent over 5 meters
• Other zones in DH 67 include 8 meters of 132 gpt Ag Equivalent including 4 meters of 194 gpt Ag Equivalent; 7 meters of 58 gpt Ag Equivalent.
• Helps extend continuity of Pit mineralization 75 to 100 meters further along strike into the Southwest Zone.

DH 57

• Three mineralized intercepts
• 118 gpt Ag Equivalent over 31 meters
• 63 gpt Ag Equivalent over 26 meters and
• 680 gpt Ag Equivalent over 5 meters
• Extends mineralization on section with DH 56 upto another 100 meters down dip. DH 56 was previously released and contained 251 meters grading 116 gpt Ag Equivalent including 66 meters of 186 gpt Ag Equivalent.

DH 64

• Hits shallow mineralization at 47 meter hole depth grading 119 gpt Ag Equivalent over 39 meters including 180 gpt Ag Equivalent over 19 meters.
• Other intercepts include 4 meters grading 152 gpt Ag Equivalent and 21 meters of 115 gpt Ag Equivalent

Northeast Zone

DH 65

• Up dip test of PC 28 which graded 237 gpt Ag Equivalent over 51 meters (see news release April 4, 2011)
• Five mineralized zones
• 167 gpt Ag Equivalent over 11 meters
• 122 gpt Ag Equivalent over 10 meters
• 96 gpt Ag Equivalent over 20 meters including 122 gpt Ag Equivalent over 10 meters
• 240 gpt Ag Equivalent over 8 meters
• 192 gpt Ag Equivalent over 3 meters
• 100 gpt Ag Equivalent over 3meters

DH 69

• Three mineralized zones
• 25 meters southwest of PC 28
• 128 gpt Ag Equivalent over 7 meters
• 45 gpt Ag Equivalent over 23 meters
• 35 gpt Ag Equivalent over 19 meters

TABLE OF RESULTS

                                                *AgEq
     Hole ID     Target     From To  Interval (Ag,Pb,Zn)  Ag    Pb   Zn  Pb+Zn
                            (m)  (m)   (m)      (gpt)    (gpt) (%)  (%)   (%)
    DH-057-11 Pit In-fill   156  161    5        680      486   2.5 1.98 4.48
    DH-057-11 Pit In-fill   379  405    26        63      20    0.4 0.62 1.02
    DH-057-11 Pit In-fill   422  453    31       118      44   0.69 1.05 1.75

              Pit SW
    DH-062-11 Extension     311  403    92       147      56   1.03 1.08 2.11
              Pit SW
    including Extension     344  349    5        378      174  3.03 1.69 4.72

              Pit SW
    DH-064-11 Extension      47  86     39       119      51    0.7 0.87 1.57
              Pit SW
    including Extension      66  85     19       180      80   1.02 1.32 2.35
              Pit SW
    DH-064-11 Extension     198  202    4        152      55   0.73 1.56  2.3
              Pit SW
    DH-064-11 Extension     208  229    21       115      54   0.67 0.77 1.43

    DH-065-11 NE Zone       166  177    11       167      76   0.95 1.19 2.14
    DH-065-11 NE Zone       201  221    20        96      47   0.34 0.83 1.16
    including NE Zone       204  214    10       122      69   0.39 0.84 1.24
    DH-065-11 NE Zone       225  228    3        192      74   1.83 0.89 2.73
    DH-065-11 NE Zone       236  239    3        166      130  0.56 0.28 0.84
    DH-065-11 NE Zone       246  254    8        240      109  1.25 1.82 3.07

              Pit SW
    DH-067-11 Extension      98  106    8        132      54   0.83 0.99 1.82
              Pit SW
    including Extension      98  102    4        194      82   1.24 1.39 2.63
              Pit SW
    DH-067-11 Extension     115  156    41       161      58   0.89 1.52 2.41
              Pit SW
    including Extension     140  154    14       342      123  1.88 3.26 5.15
              Pit SW
    DH-067-11 Extension     159  166    7         58      28   0.36 0.35 0.71
              Pit SW
    DH-067-11 Extension     256  301    45        65      28   0.41 0.46 0.87
              Pit SW
    including Extension     263  268    5        165      66   1.03 1.28 2.31

    DH-069-11 NE Zone       138  161    23        45      33   0.11 0.18 0.29
    DH-069-11 NE Zone       176  195    19        35      26   0.08 0.12  0.2
    DH-069-11 NE Zone       225  226    1        278      157  1.57 1.25 2.82
    DH-069-11 NE Zone       288  295    7        128      49   0.99 0.85 1.84

*Assuming 100% Metallurgical Recovery

*Prices used in Silver Equivalent (AgEq) Calculations:

    Ag dollars/oz       $15.00
    Zn dollars/lb       $0.91
    Pb dollars/lb       $0.97

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

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

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 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.

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.kootenaygo ld.ca

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