Kootenay Gold Inc. (TSX VENTURE: KTN.V) is pleased to announce assay results from an additional 6 drill holes from its 25,000 meter, ongoing, multi-phase, step out drill and resource definition program on its Promontorio Silver Project in Sonora, Mexico.

The Company reports the multi-rig diamond drilling program continues to yield high-grade results, while demonstrating continuity of silver mineralization in the top priority Southwest and Northeast zones across the property's central 1km mineralized corridor.

The strike continuity of silver mineralization in the Southwest Zone connecting to the NI 43-101 Pit Resource currently measures 140 meters to 300 meters. In the Northeast Zone, which sits 700 meters outside of the current NI 43-101 Pit Resource, mineralization along strike now extends approximately 210 meters.

States Kootenay CEO James McDonald "We continue to encounter multiple high-grade silver intercepts in the Northeast Zone and the Southwest Zone which once again underscores the strength and large upside potential of Promontorio's diatreme breccia hosted mineral system. We could not be more enthused and optimistic with results from the current multi-phase program. Approximately 4000 meters of drilling remain to be completed in the 25,000 meter drill program, following which time geologic modeling and a NI 43-101 resource update will be completed."

To view map of drill hole locations please visit:
http://www.kootenaygold.ca/i/projects/Promontorio/drillresultsmap.pdf

Highlights from the Northeast (NE) Zone include:

DH 110 in the Northeast Zone hits 18 meters of 873 pgt Silver Equivalent
(471 gpt Ag, 9.42% Pb+Zn) within 71 meters of 297 Silver Equivalent (149 gpt Ag, 3.46% Pb+Zn)

The high-grade intercept in DH 110 included 4.5 meters of 1146 gpt Silver Equivalent
(646 gpt Ag, 11.67% Pb+Zn) and a separate 4 meter interval of 1060 gpt Silver Equivalent
(667 gpt Ag, 9.21% Pb+Zn)

Highlights in the Southwest Zone include:

DH 106 hits 678 gpt Silver Equivalent over 4 meters (535 gpt Ag, 3.29% Pb+Zn)
DH 105 hits 17 meters of 150 gpt Silver Equivalent (118 gpt Ag, 0.76% Pb+Zn)

In the Southwest Zone DH 105 included two higher grade intervals of 392 gpt Silver Equivalent (310 gpt Ag, 1.91% Pb+Zn) over 4 meters and 350 gpt Silver Equivalent (287 gpt Ag and 1.48% Pb+Zn) over 2 meters

Table of the full results:

*Assuming 100% Metallurgical Recovery
*Prices used in Silver Equivalent (AgEq) Calculations:
Ag dollars/oz 15
Zn dollars/lb 0.91
Pb dollars/lb 0.97

Northeast Zone
DH 110
High grade intercept 55 meters up dip of DH 70 which hit 54 meters of 197 gpt Ag Equivalent (92 gpt Ag, 2.47% Pb+Zn) including 16 meters of 492 gpt Ag Equivalent (203 gpt Ag, 6.81% Pb+Zn)
About 35 meters on strike of high grade previously released hole DH 88 with 16 meters of 706 gpt Ag Equivalent (370 gpt Ag, 7.79% Pb+Zn)

DH 108
No significant results
Drilled 48 meters up dip of previously released DH 95 and 75 meters up dip of high grade DH 88

Southwest Zone
DH 105 and 106 both hitting high grade with DH 106 40 meters up dip of DH 105
About 134 meters southwest of Pit Resource boundary
Drilled on section with previously announced DH 91 and DH 102 with DH 106 being 85 meters up dip of DH 102 and 210 meters up dip of DH 91
DH 91 hit 86 meters of 57 gpt Ag Equivalent (23 gpt Ag, 0.81% Pb+Zn) including 9 meters of 162 gpt Ag Equivalent (67 gpt Ag, 2.19% Pb+Zn)
DH 102 hit 12 meters of 35 gpt Ag Equivalent (12 gpt Ag, 0.54% Pb+Zn) and 2 meters of 318 gpt Ag Equivalent (223 gpt Ag, 2.21% Pb+Zn)

Pit Northeast Extension
DH 109
On section with PC 52
About 40 meters northeast of Pit Resource
DH 107
Hole deviated to the southwest transversing section about 12 meters down dip of previously released DH 77

The current 25,000 meter in-fill 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 focus on step out and in-fill drilling off setting the numerous 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 disclosed on the Kootenay Gold Inc. 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.

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For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaygold.ca

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.

2012 number 3