Promontorio

PROMONTORIO SILVER PROJECT, Sonora, Mexico

SETTING THE STAGE FOR ADVANCED EXPLORATION AND DEVELOPMENT

ACQUISITION OF RICH PROMONTORIO SILVER PROJECT
For Kootenay, the milestone acquisition of the Promontorio Silver project represents the culmination of over 2 years of intense negotiating with former property holders and the Mexican Ministry of Mines. Cash and equity commitments exceeding $2million secured the right to a 100% registered and beneficial interest in the highly sought after Promontorio project, which consists of contiguous claims covering a total area of approximately 90,000 hectares.

DRILLING ENCOUNTERS WIDESPREAD MINERALIZATION
Kootenay has completed Phase I and II exploration programs, consisting of; an airborne geophysical survey, ground geophysics, geological mapping, till sampling, prospecting along cut grid lines, 3D IP Survey and more than 10,000 meters of detailed drilling.

Drilling encounted wide to moderate intervals of high-grade silver-gold polymetallic breccias in a porphyry breccia setting. Results received to date report 36 holes, 20 of which intersected significant precious and base metal mineralization starting from surface and extending to depth. Highlights included 18.4 meters grading 950 g/t and 151 meters grading 162 g/t silver-equivalent. Dimensions of the Discovery Zone tested to date are approximately 200 meters by 300 meters in plan by 440 meters vertically. Mineralization remains open to the West, North, East and to depth.

3D IP GEOPHYSICAL SURVEY
The mineralized zone tested to date covers approximately 10% of the 3D IP Geophysical target which comprises a large "L" shaped area of chargeability, with one "arm" measuring 1.6 km and the other 900 meters, and with widths ranging from 250 to 600 meters.

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MULTI-PHASE EXPLORATION ACCELERATES
Kootenay's results from Phase I & II drilling programs on the Promontorio Silver Project have not gone unnoticed by the international mining and finance community. In the first two quarters of 2008, Kootenay raised ~$24 million in financings which has enabled management to fast track exploration at Promontorio and expand its current drill program to 45,000 meters. The additional 100+ holes will test the large 1.6 km IP Anomaly and the newly discovered mineralized zones in the surrounding 90,000 hectare property.

To view 3D DRILL MODEL click here

CHRONOLOGY OF A HISTORIC PRODUCER
The first work on the Promontorio property began in the early 1900s by the Manhattan Exploration Co., with funding provided by J.P. Morgan interests. An inclined shaft reaching a depth of 158.5 meters was collared in the hanging wall of the northeast-striking fault on a topographically prominent mineralized outcrop. Two other exploration shafts located to the north were sunk to depths of 30 meters each and a production shaft was sunk to a depth of 25 meters when work was suspended in the 1920s due to the Yaqui rebellion.

In 1958, J.G. White Engineering Corp. recommended the property be put into production. An open cut 85 meters long from 7 by 25 meters wide and 20 meters deep was excavated to expose ore about the 100-level and a small mill was installed at the property.

In 1973, a feasibility study was prepared with an ore reserve estimated at 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74%, Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m below the floor of the open cut. (This calculation is historic in nature, does not conform to NI 43-101 standards, and cannot be verified, and therefore should not be relied upon.)

In 1988, a small Mexican mining firm completed the mill a 200 ton/day mill and processed approximately 48,000 tons of ore before low metal prices closed the mine in 1990.

In 1997 A Junior Mining Company optioned the property after finding extremely high values of silver, lead, and zinc from chip and channel samples. Limited exploration included eight drill holes, geological mapping, line cutting, and geophysical surveys. However in 1999, with a lull in the exploration and mining industry, the junior allowed its option on the property to lapse.

The Mineral Rich Sierra Madre Trend of Mexico
The Sierra Madre region of Mexico is responsible for discoveries in excess of 520 million oz silver, and 15 million oz of gold. Prior to 2001 the Sierra Madre Trend had no major producers, just six years later it now has six producing mines each containing multi million oz reserves of silver, gold and base metals. In addition, there are two projects under construction and two more in feasibility. Initial drilling by Kootenay at the Promontorio suggests the possibility of a large scale Porphyry system similar to major deposits within this region.

CROSS SECTIONS OF PHASE I & II DRILLING

View the Plan Map Click for Larger View	S3110920N_KP-8,9,10,12,17,20,24,25 Click for Larger View	S3110900N_KP-5,6,7,19,22,23 Click for Larger View
S3110970N_KP-1,2,3,4,18 Click for Larger View	S3110910N_KP-4,6,7,9,10,11,12,17,18,19 Click for Larger View	S628422E_KP-18,19,20,22 Click for Larger View
S628411E_KP-4,7,12,17,18,19,20 Click for Larger View	S628472E_KP-3,4,7,12,116,17,18,19,20 Click for Larger View	View the DH Collar Click for Larger View

Inital Step Out Results January 14, 2010

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