Kootenay Announces Two Drill Rigs Operating on Promontorio, Third Diamond Drill Rig Has Been Mobilized and is Expected to Commence Drilling in Two Weeks

VANCOUVER, June 15, 2011 /PRNewswire/ --

Shares Outstanding: 44,958,100 

Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce that two diamond drills are now operating at the Company's Promontorio Silver Project in Sonora, Mexico and a third diamond drill rig has recently been mobilized on site and is expected to commence drilling in the next two weeks.

As previously announced on May 31, 2011, Kootenay has initiated 25,000 meters of drilling to follow up on the success of the Company's recently concluded 10,000 meter drill program on Promontorio. The current in-fill drilling and resource definition program represents the single largest and most expansive drilling campaigns conducted to date by Kootenay on the Promontorio Silver project.

The 25,000 meter, multi-phase program will concentrate on step out and in-fill drilling off setting the numerous drill intercepts concentrated along a 1.0 kilometer long mineralized corridor that includes the Pit Resource, Pit NE zone, Northeast zone and Southwest zone.

See 25,000 meter drill highlights and map: http://www.kootenaygold.ca/i/projects/Promontorio/drillresultsmap.pdf

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:  http://www.kootenaygold.ca