La Negra Ag Diatreme Breccia Pipe Promontorio IV Concession, Sonora, MX 92.4Moz Ag eq M + I Promontorio (6km)* La Negra *NI 43-101 Report by SRK Consultants Inc. Effective date March 31, 2013 See Website and News Release May 14 th, 2013 and disclaimer. 1
La Negra Diatreme Ag Breccia Pipe Promontorio IV Concession, Sonora, Mexico 2
La Negra Trenches May, 2014 Luis Moya Francisco Coronado Gustavo Gallego 3
La Negra chip samples N 5 3 2 4 6 1 Continous chip samples of 3 mts Panel chip samples (2x2mt) 100 mt 1 Trench Number Breccia Outcrop 4
Trench samples of 3 mts long trench #1 Ag (ppm) trench #4 Ag (ppm) tn01 61 tn27 7 tn02 83 tn28 22 tn03 198 tn29 35 tn04 64 tn30 18 tn05 83 tn31 5 tn06 121 tn32 9 tn07 82 tn33 17 Average 21m. 98.9 Average 21m. 16.1 trench #2 Ag (ppm) trench #5 Ag (ppm) tn08 33 tn34 18 tn09 32 tn35 30 tn10 23 tn36 138 tn11 24 tn37 105 tn12 26 tn38 75 tn13 25 tn39 29 tn14 30 tn40 19 tn15 160 Average 21 m. 59.1 tn16 26 Average 27 m. 42.1 trench #6 Ag (ppm) trench #3 Ag (ppm) tn41 24 tn17 25 tn42 35 tn18 21 tn43 23 tn19 25 tn44 26 tn20 33 tn45 44 tn21 56 tn46 45 tn22 41 tn47 42 tn23 21 tn48 55 tn24 35 tn49 8 tn25 59 tn50 33 tn26 76 Average 30 m. 33.5 Average 30 m. 39.2 Trench samples average = 46.5 ppm Ag Panel Chips of 2 x2 mt Sample_ID Ag ppm FA1983ch 27 FA1984ch 15 FA1985ch 21 FA1986ch 61 FA1987ch 13 FA1988ch 16 FA1989ch 27 FA1990ch 156 Fc912CH 512 Fc930CH 60 Fc932CH 37 Fc933CH 23 Fc934CH 20 Fc936CH 25 Fc937CH 81 Fc938CH 303 PS2374Ch 174 PS2376Ch 8 PS2389Ch 459 average 107.3 Panel samples average = 107.3 ppm Ag 5
Trench #1, Ag(ppm) N breccia 10 mt Chips samples 2x2 mts 6
Trench #1 83 198 64 83 121 82 61 83 198 64 83 121 82 7
Tn02: 83 Ag(ppm) Tn03: 198 Ag(ppm) 8
Trench #2, Ag(ppm) N Chips samples 2x2 mts 10 mt breccia 9
Trench #2 23 24 26 25 30 160 26 32 33 10
Tn09: 32 Ag(ppm) Tn15: 160 Ag(ppm) 11
Trench #3, Ag(ppm) N 10 mt Chips samples 2x2 mts breccia 12
Trench #3; Ag(ppm) 25 21 25 33 56 41 21 35 59 76 56 41 21 35 59 76 13
Tn19: 25 Ag (ppm) Tn26: 76 Ag (ppm) 14
Trench #4, Ag(ppm) N Chips samples 2x2 mts breccia 10 mt 15
Trench #4; Ag(ppm) 17 9 5 7 22 35 18 17 16
Tn29: 35 Ag(ppm) Tn33: 17 Ag (ppm) 17
Trench #5, Ag(ppm) N Chips samples 2x2 mts breccia 10 mt 18
Trench #5; Ag(ppm) 19 29 75 105 138 30 18 75 29 19 18 30 138 19
Tn36: 138 Ag(ppm) Tn40: 19 Ag(ppm) 20
Trench #6, Ag(ppm) N Chips samples 2x2 mts breccia 10 mt 21
Trench #6; Ag(ppm) 24 35 23 26 44 45 42 55 8 33 24 35 23 26 44 45 42 55 8 33 22
Tn42: 35 Ag(ppm) Tn50: 33 Ag(ppm) 23
Disclaimer In the interest of providing current and potential shareholders with information regarding the Company s plans and future operations, certain statements and graphics in this presentation contain forward looking statements. Such forward looking statements involve risk and uncertainty. Although information used in this presentation was considered reasonable by management at the time of preparation, the results may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. All NI 43-101 Resource Calculation information contained throughout this presentation is prepared by SRK Consultants Inc. (SRK), dated May 2013.. All sample results reported were collected by Kootenay Silver under the supervision of Luis Moya and Dr. Tom Richards. Samples were assayed using a high grade multi acid digestion ICP analysis conducted by ALS Chemex of North Vancouver, B. C. Canada and prepped in ALS Chemex lab in Hermosillo, Sonora Mexico. There is no assurance that any mineralization at the La Negra Breccia will result in the discovery of any resources or reserves. The geological disclosure contained within this presentation has 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. Further QA and QC procedures may be found on the Company s website www.kootenaysilver.com. Cautionary Note to US Investors National Instrument 43-101 Standards of Disclosure for Mineral Projects ( NI 43-101 ) is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained or incorporated by reference in this presentation have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining Metallurgy and Petroleum Classification System. These standards differ significantly from the requirements of the SEC, and reserve and resource information contained herein and incorporated by reference into this presentation may not be comparable to similar information disclosed by U.S. companies. In this presentation, we use the terms measured, indicated and inferred resources. U.S. investors are cautioned that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under U.S. standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. investors should also understand that inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, U.S. investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of contained ounces is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report resources as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this presentation, including the documents incorporated by reference therein, may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. NI 43-101 also permits an historical estimate made prior to the adoption of NI 43-101 that does not comply with NI 43-101 to be disclosed using the historical terminology if the disclosure: (a) identifies the source and date of the historical estimate; (b) comments on the relevance and reliability of the historical estimate; (c) states whether the historical estimate uses categories other than those prescribed by NI 43-101, and if so, includes an explanation of the differences; and (d) includes any more recent estimates or data available. We have not independently verified the accuracy of the information regarding the mining industry and other market data set forth herein. This information is not intended to provide and should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisors as to the accounting, legal, tax, regulatory, business, financial and related aspects of making an investment in the Company. 24