VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2008) - NOT FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES

KOOTENAY GOLD INC. (TSX VENTURE: KTN) (the "Company") is pleased to
announce the completion of its previously announced brokered private
placement raising gross proceeds of $12,425,600 (the "Private
Placement"). The Private Placement was oversubscribed, reflecting
both the institutional and retail investor demand for the issue. PI
Financial Corp. (the "Agent") acted as agent for the Private
Placement.

Each unit (a "Unit"), priced at $2.20 per Unit, consists of one
common share of the Company (a "Share") and one-half of one
transferable common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant will entitle the holder to acquire, at any
time within 24 months from the date of closing of the Private
Placement (the "Closing"), one additional common share of the Company
at an exercise price of $2.75 per share. A total of 5,648,000 Shares
and 2,824,000 Warrants were issued to investors under the Private
Placement.

Proceeds from the private placement will be used to finance further
exploration of the Company's principal asset, the Promontorio
property in Sonora, Mexico, and for general working capital purposes.
Drilling at the Promontorio silver project has encountered widespread
mineralization to a depth of 444 metres. Highlights include 97.67
metres grading 144 gpt silver equivalent and 3.24% combined
lead-zinc. Kootenay intends to increase the current 10,000 metre
drill program to 45,000 metres (approximately 100 drill holes), which
will test the large 3D IP Chargeability Anomaly described in the May
14th and May 22nd, 2008 news releases. Additional work planned
includes an expanded IP survey, mapping, trenching and surface
sampling program to test newly discovered mineralized zones in the
surrounding 90,000 hectare Promontorio property. To view the
Promontorio 3D Model of drill results visit www.kootenaygold.ca.

In consideration for its services, the Agent has received a
commission equal to 6.5% of the gross proceeds of the Private
Placement, consisting of $458,524 paid in cash and 158,700 units (the
"Agent's Units"), having the same terms as the Units sold under the
Private Placement, except that the common share purchase warrants
comprising part of the Agent's Units are non-transferable. The Agent
also received 367,120 options (the "Agent's Options"), equal to 6.5%
of the number of Units sold under the Private Placement. Each Agent's
Option is exercisable at any time up to 24 months following the
Closing to acquire one common share of the Company at an exercise
price of $2.50 per share. All securities issued under the Private
Placement are subject to a four-month hold period under applicable
Canadian securities laws expiring on October 19, 2008.

The foregoing geological disclosure has been reviewed and verified by
Kootenay's CEO, James McDonald, P.Geo (a qualified person for the
purposes of National Instrument 43-101, Standards of Disclosure for
Mineral Projects). Mr. McDonald is a director of the Company.

The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act"), or the securities laws of any state of
the United States and may not be offered or sold within the United
States or to or for the account or benefit of U.S. persons unless the
securities have been registered under the U.S. Securities Act and the
applicable securities legislation of any such state or an exemption
from such registration requirements is available. This release does
not constitute an offer for sale of securities in the United States.

ABOUT KOOTENAY

Kootenay is an emerging exploration company actively developing
mineral projects in British Columbia, Canada and the Sierra Madre
Region of Mexico. The Company's top priority remains the ongoing
development of its 100% owned Promontorio silver project, which
encompasses the former producing Promontorio Silver Mine in Northwest
Mexico.

Cautionary Note: 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 does not constitute an offer to sell or a
solicitation of an offer to buy any securities in the United States.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. persons unless registered
under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available. 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.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.

Contacts:
Kootenay Gold Inc.
James McDonald
CEO
(403) 238-6986

Kootenay Gold Inc.
Ken Berry
President
(604) 601-5652 or 1-888-601-5650
Website: www.kootenaygold.ca





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