VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 07/22/08 -- Kootenay
Gold Inc. (TSX VENTURE: KTN) ("Kootenay") is pleased to announce
drill results from holes 26 to 36 at its 100% owned Promontorio
Silver Discovery located in Sonora State, Mexico. 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. 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.

Jim McDonald, CEO of Kootenay commented: "We continue to encounter
widely disseminated gold-silver and lead-zinc zones at the
Promontorio Silver Project. Based on our success we have added a
second drill rig. One rig will remain deployed on the Discovery Zone,
while the second rig will systematically drill test the IP anomaly to
the east (Zone E). Drill hole KP-39 (results pending) is located
approximately 1km from the Discovery (Zone N) across the IP Anomaly
and is currently at 528 meters in vertical depth and continuing.
Multiple anomalous surface samples grading up to 1,082 g/t silver
occur between the "Discovery Zone" and the 1 km step out drill hole
(see enclosed map, Area E). Kootenay currently has cash in treasury
of approximately $20 million providing our exploration team with 2 to
3 years of funds to systematically test a large target area within
the IP Anomaly and the numerous new targets identified in recent
exploration (see enclosed map and May 14, 2008 news release)".

Highlights of results include:
Hole: KP-26-08
187.80 meters grading 66.97 g/t Ag equivalent and 1.31% combined
lead-zinc
Hole: KP-27-08
419.88 meters grading 56.18 g/t Ag equivalent and 1.24% combined
lead-zinc
Hole: KP-29-08
268.21 meters grading 52.40g/t Ag equivalent and 1.18% combined
lead-zinc
Hole: KP- 30-08
149.08 meters grading 53.44 g/t Ag equivalent and 0.84% combined
lead-zinc
Hole: KP-32-08
128.35 meters grading 56.26 g/t Ag equivalent and 0.98% combined
lead-zinc
Hole: KP-33-08
99.65 meters grading 87.97 g/t Ag equivalent and 1.66% combined
lead-zinc
Hole: KP-35-08
97.40 meters grading 73.32 g/t Ag equivalent and 2.21% combined
lead-zinc
Hole: KP-36-08
308.74 meters grading 50.40 g/t Ag equivalent and 1.10% combined
lead-zinc

Drill results are summarized in the following table
((i)Denotes previously released drill holes)
--------------------------------------------------------------------------
                             Inter-                                     Pb/
Drill         From      To     val      Ag    Au    AgEq    Pb    Zn    Zn
Hole            (m)     (m)     (m)   (g/t) (g/t)   (g/t)   (%)   (%)   (%)
--------------------------------------------------------------------------
KP-01-07(i)  53.48   57.25    3.77  236.80  0.72  277.40  0.47  0.35  0.81
--------------------------------------------------------------------------
KP-02-07(i)  71.15  100.75   29.60  215.60  1.23  285.20  0.94  2.39  3.33
--------------------------------------------------------------------------
KP-04-07(i) 110.60  130.57   19.97   18.84  0.49   46.73  0.21  0.19  0.39
--------------------------------------------------------------------------
KP-05-07(i)  66.37   81.34   14.97  329.50  1.81  431.50  1.79  2.60  4.39
--------------------------------------------------------------------------
KP-06-07(i) 111.58  136.72   25.14  209.40  0.97  264.10  0.89  1.12  2.01
--------------------------------------------------------------------------
 Incl.      117.87  121.93    4.06  492.70  1.63  584.70  1.49  2.59  4.08
--------------------------------------------------------------------------
 incl.      130.73  136.72    5.99  462.30  0.93  514.80  2.05  2.58  4.64
--------------------------------------------------------------------------
KP-07-07(i)  47.12   62.15   15.03   27.95  0.60   61.62  0.47  0.83  1.29
--------------------------------------------------------------------------
KP-07-07(i)  23.64   66.45   42.81   20.85  0.36   41.05  0.27  0.44  0.71
--------------------------------------------------------------------------
 Incl.       23.64   25.95    2.31  128.90  0.92  181.10  1.13  2.03  3.15
--------------------------------------------------------------------------
KP-08-07(i)   0.00   45.15   45.15   23.10  0.58   56.01  0.11  0.28  0.39
--------------------------------------------------------------------------
 Incl.       17.47   45.15   27.68   36.09  0.87   85.06  0.17  0.32  0.49
--------------------------------------------------------------------------
KP-09-07(i)  54.80   87.46   32.66  212.90  2.34  344.90  1.72  2.21  3.93
--------------------------------------------------------------------------
 Incl.       61.85   68.55    6.70  671.20  3.46  866.40  3.29  4.59  7.88
--------------------------------------------------------------------------
 Incl.       60.35   80.25   19.90  345.10  3.36  534.80  2.78  3.59  6.37
--------------------------------------------------------------------------
KP-10-07(i) 106.10  135.00   28.90   31.32  0.24   45.12  0.28  0.15  0.44
--------------------------------------------------------------------------
KP-12-07(i) 127.20  127.74    0.54  158.50  3.83  374.50  2.15  2.95  5.10
--------------------------------------------------------------------------
KP-12-07(i) 111.20  115.00    3.80   95.49  1.30  168.50  1.16  1.59  2.75
--------------------------------------------------------------------------
KP-12-07(i)  58.61   60.35    1.74   26.53  0.60   60.41  0.72  0.75  1.47
--------------------------------------------------------------------------
KP-13-07     49.70   92.23   42.53    8.61  0.47   35.09  0.02  0.02  0.05
--------------------------------------------------------------------------
KP-14-07(i)  58.88   62.17    3.29   11.33  0.11   17.71  0.53  0.66  1.20
--------------------------------------------------------------------------
KP-15-07(i)  64.20   65.40    1.20  942.10  1.51 1027.00  6.26  6.44 12.70
--------------------------------------------------------------------------
KP-15-07(i) 119.91  124.18    4.27    8.47  0.27   23.76  0.46  0.20  0.66
--------------------------------------------------------------------------
KP-16-07(i)  10.55   22.23   11.68   17.87  0.15   26.23  0.24  0.27  0.51
--------------------------------------------------------------------------
KP-17-07(i)   8.38  188.75  180.37   16.67  0.23   29.63  0.32  0.37  0.70
--------------------------------------------------------------------------
 Incl.       27.40   38.85   11.45   55.54  1.12  118.70  1.18  1.28  2.46
--------------------------------------------------------------------------
 Incl.       12.95   75.90   62.95   36.27  0.53   65.89  0.72  0.84  1.57
--------------------------------------------------------------------------
KP-18-07(i)  18.75   23.37    4.62   34.61  0.29   51.16  0.55  1.10  1.65
--------------------------------------------------------------------------
KP-18-07     14.35   21.95    7.60   22.10  0.98   77.35  0.32  0.63  0.95
--------------------------------------------------------------------------
KP-18-07(i)  91.23   96.12    4.89   35.07  0.24   48.74  0.70  0.59  1.29
--------------------------------------------------------------------------
KP-18-07(i) 161.12  182.95   21.83    9.62  0.42   33.33  0.09  0.27  0.35
--------------------------------------------------------------------------
KP-19-07(i)   8.90  153.00  144.10   36.62  0.17   46.20  0.38  0.46  0.85
--------------------------------------------------------------------------
 Incl.      126.61  153.00   26.39  134.50  0.24  148.00  1.35  1.53  2.88
--------------------------------------------------------------------------
KP-20-07(i)  35.55  381.92  346.37   28.12  0.38   49.75  0.56  0.74  1.30
--------------------------------------------------------------------------
 Incl.      343.58  348.34    4.76   76.81  2.20  200.90  1.76  3.25  5.01
--------------------------------------------------------------------------
 Incl.      215.35  302.05   86.70   52.37  0.43   76.83  1.10  1.28  2.38
--------------------------------------------------------------------------
 Incl.      215.35  381.92  166.57   40.54  0.45   65.66  0.86  1.06  1.92
--------------------------------------------------------------------------
 Incl.       35.55   83.10   47.55   30.10  0.67   68.04  0.55  0.73  1.28
--------------------------------------------------------------------------
KP-21-07     16.80   20.20    3.40    1.13  1.15   66.26  0.02  0.01  0.03
--------------------------------------------------------------------------
KP-22-07(i)  44.40  202.05  157.65   48.93  0.51   77.53  0.70  0.95  1.65
--------------------------------------------------------------------------
 Incl.      190.85  197.93    7.08  212.20  2.58  357.70  3.06  3.60  6.66
--------------------------------------------------------------------------
 Incl.       71.05   75.95    4.90   49.67  1.71  146.10  0.93  3.09  4.03
--------------------------------------------------------------------------
 Incl.      152.25  202.05   49.80   95.53  0.95  148.90  1.36  1.76  3.12
--------------------------------------------------------------------------
KP-22-07(i)   6.30   26.10   19.80    8.02  0.16   16.92  0.09  0.13  0.22
--------------------------------------------------------------------------
KP-23-08(i)   6.55  444.00  437.45   28.20  0.44   53.00  0.53  0.63  1.16
--------------------------------------------------------------------------
 Incl.       67.45   79.10   11.65  143.50  1.14  207.70  2.82  2.11  4.93
--------------------------------------------------------------------------
 Incl.        6.55  196.47  189.92   52.30  0.64   88.50  0.97  1.04  2.00
--------------------------------------------------------------------------
 Incl.      333.65  444.00  110.35   13.93  0.46   40.12  0.27  0.50  0.77
--------------------------------------------------------------------------
KP-24-08(i)   3.00  438.00  435.00   13.96  0.20   25.07  0.22  0.28  0.50
--------------------------------------------------------------------------
 Incl.      131.83  193.64   61.81   55.65  0.76   98.61  0.84  0.98  1.82
--------------------------------------------------------------------------
 Incl.      338.30  419.40   81.10    9.40  0.10   15.06  0.19  0.37  0.56
--------------------------------------------------------------------------
KP-25-08(i)   2.01  388.65  386.64   46.15  0.44   70.79  0.78  0.76  1.54
--------------------------------------------------------------------------
 Incl.      225.80  233.65    7.85  335.40  2.46  473.90  6.12  4.01 10.13
--------------------------------------------------------------------------
 Incl.      201.00  298.67   97.67  100.40  0.77  144.00  1.74  1.50  3.24
--------------------------------------------------------------------------
 Incl.      117.70  388.65  270.95   62.44  0.57   94.41  1.07  1.03  2.10
--------------------------------------------------------------------------
KP-26-08    176.60  364.40  187.80   36.94  0.53   66.97  0.65  0.66  1.31
--------------------------------------------------------------------------
 Incl.      200.75  302.40  101.65   53.00  0.82   99.11  0.92  0.94  1.85
--------------------------------------------------------------------------
 Incl.      200.75  230.65   29.90   87.11  1.02  144.40  1.48  1.45  2.93
--------------------------------------------------------------------------
KP-27-08      0.00  419.88  419.88   31.86  0.43   56.18  0.57  0.67  1.24
--------------------------------------------------------------------------
 Incl.       11.15   83.85   72.70   52.27  1.06  112.30  0.85  0.97  1.82
--------------------------------------------------------------------------
 Incl.       15.61   43.33   27.72   76.98  1.24  147.20  1.10  1.18  2.27
--------------------------------------------------------------------------
 Incl.      109.80  345.95  236.15   34.75  0.36   55.18  0.66  0.74  1.40
--------------------------------------------------------------------------
 Incl.      200.45  266.35   65.90   61.36  0.78  105.20  1.13  1.20  2.33
--------------------------------------------------------------------------
KP-28-08     22.10   33.67   11.57   13.67  0.22   25.92  0.43  0.62  1.05
--------------------------------------------------------------------------
KP-28-08     87.61  164.20   76.59   20.75  0.23   33.84  0.36  0.52  0.89
--------------------------------------------------------------------------
 Incl.      119.94  164.20   44.26   24.78  0.33   43.33  0.44  0.67  1.11
--------------------------------------------------------------------------
KP-28-08    195.78  234.50   38.72   22.76  0.58   55.25  0.35  0.53  0.88
--------------------------------------------------------------------------
KP-28-08    392.71  416.00   23.29   23.71  0.33   42.21  0.47  1.13  1.59
--------------------------------------------------------------------------
KP-29-08     19.13   38.02   18.89   24.33  0.19   35.04  0.51  0.79  1.30
--------------------------------------------------------------------------
KP-29-08    166.35  434.56  268.21   28.49  0.42   52.40  0.54  0.65  1.18
--------------------------------------------------------------------------
 Incl.      166.35  357.40  191.05   34.83  0.50   63.13  0.65  0.72  1.37
--------------------------------------------------------------------------
 Incl.      288.15  336.50   48.35   36.76  0.99   92.43  0.85  0.94  1.79
--------------------------------------------------------------------------
 Incl.      323.00  335.00   12.00   84.99  2.77  241.00  1.99  2.02  4.01
--------------------------------------------------------------------------
KP- 30-08    70.00   75.00    5.00   21.68  0.11   27.89  0.49  0.60  1.09
--------------------------------------------------------------------------
KP- 30-08   123.57  129.76    6.19   16.06  0.22   28.61  0.26  0.45  0.71
--------------------------------------------------------------------------
KP- 30-08   202.19  351.27  149.08   31.01  0.40   53.44  0.43  0.41  0.84
--------------------------------------------------------------------------
 Incl.      277.26  312.40   35.14   50.14  0.65   87.03  0.90  0.76  1.67
--------------------------------------------------------------------------
KP- 30-08   381.64  425.10   43.46   25.26  0.25   39.52  0.55  0.73  1.28
--------------------------------------------------------------------------
KP-31-08    206.90  219.66   12.76   12.59  0.11   18.70  0.24  0.37  0.60
--------------------------------------------------------------------------
KP-31-08    226.00  236.71   10.71   23.62  0.14   31.57  0.45  0.59  1.04
--------------------------------------------------------------------------
KP-31-08    275.45  357.90   82.45   16.41  0.19   27.40  0.28  0.30  0.58
--------------------------------------------------------------------------
 Incl.      275.45  291.23   15.78   34.50  0.52   63.71  0.63  0.68  1.30
--------------------------------------------------------------------------
KP-32-08    198.95  327.30  128.35   26.66  0.52   56.26  0.49  0.50  0.98
--------------------------------------------------------------------------
 Incl.      267.56  327.30   59.74   32.54  0.60   66.60  0.60  0.57  1.17
--------------------------------------------------------------------------
KP-32-08    354.70  366.97   12.27   16.89  0.12   23.80  0.35  0.37  0.72
--------------------------------------------------------------------------
KP-32-08    407.25  411.08    3.83   21.03  0.36   41.60  0.44  0.56  1.01
--------------------------------------------------------------------------
KP-33-08    164.35  295.71  131.36   42.21  0.50   70.30  0.60  0.71  1.31
--------------------------------------------------------------------------
KP-33-08    164.35  264.00   99.65   52.84  0.62   87.97  0.77  0.89  1.66
--------------------------------------------------------------------------
KP-33-08    310.64  386.20   75.56   37.17  0.45   62.49  0.68  0.68  1.36
--------------------------------------------------------------------------
 Incl.      323.69  386.20   62.51   40.95  0.50   68.98  0.75  0.71  1.46
--------------------------------------------------------------------------
KP-34-08    215.28  284.60   69.32   30.46  0.39   52.66  0.38  0.41  0.79
--------------------------------------------------------------------------
KP-35-08    287.60  385.00   97.40   50.79  0.40   73.32  0.97  1.24  2.21
--------------------------------------------------------------------------
 Incl.      311.74  335.95   24.21   89.81  0.59  122.90  1.94  2.25  4.19
--------------------------------------------------------------------------
 Incl.      321.90  335.95   14.05  111.60  0.76  154.20  2.51  2.86  5.37
--------------------------------------------------------------------------
KP-36-08     88.15  396.89  308.74   30.27  0.36   50.40  0.52  0.58  1.10
--------------------------------------------------------------------------
 Incl.      208.35  295.80   87.45   41.83  0.49   69.29  0.72  0.89  1.62
--------------------------------------------------------------------------
 Incl.      259.95  295.80   35.85   60.31  0.59   93.77  1.05  1.25  2.31
--------------------------------------------------------------------------
 Incl.      332.14  373.98   41.84   32.46  0.59   65.62  0.72  0.71  1.43
--------------------------------------------------------------------------
-Weighted averages for intervals including lost or unsampled intervals were
 calculated using zero values for the missing intervals.
-Prices used in calculating Ag Eqv.: Au $790/oz, Ag $14/oz,
-If an assay value was below the detectable limit - the grade of the limit
 was used in the calculations:
-Au less than 2 ppb equals 2 ppb; Ag less than 0.5 ppm equals 0.5 ppm;
 Zn less than 0.01% equals 0.01%; Pb less than 0.01% equals 0.01%
-Grades and equivalency assumes 100% recovery

Note: Maps, cross sections and a complete listing of assay intervals
and drill hole coordinates can be viewed on the Kootenay website at
www.kootenaygold.ca.

Note: A map is also available at the following link:
http://media3.marketwire.com/docs/ktn0722.pdf.

Mineralization continues to occur as pyrite, galena, sphalerite, and
possible silver sulfosalts within veins, veinlets, fractures,
disseminations and as breccia infilling. In addition to the andesite
significant mineralization has now been observed in diorites and
sediments.

Drilling

Drilling is all core and has been contracted to BDW International out
of Guadalajara Mexico and all core has been HQ sized.

Sampling and Assaying

All core samples are cut by a rock saw with one half being returned
to the core box for reference and the other being bagged in a plastic
sample bag which is labeled, tagged, documented and sealed with wire.
Each sample is placed in a rice sack and sealed with a zip tie. All
samples are recorded and delivered to International Plasma Labs Ltd.
("iPL") sample preparation lab in Hermosillo, Sonora, Mexico. Receipt
of the samples is signed off at the preparation lab. Pulps of each
sample are then prepared and sent to iPL Laboratories in Richmond
B.C. Canada an ISO 9001-2000 certified full service laboratory. All
of the samples referred to herein are core samples. A QA/QC program
which includes the regular insertion by the Company of duplicates,
blanks and standards has been instituted. iPL Laboratories also has
its own system of replicate analysis and blanks which it provides to
the Company. Each pulp is analyzed using iPL's AU(FA/AAS)
Ag/Ore-Grade by Multi acid digestion ICP (Cu/Pb/Zn/Ag) assay package.
This is a multi acid digestion with gold analyzed with an AA finish
with over limits done with gravimetric finish and silver analyzed by
ICP (inductively coupled plasma) and a gravimetric finish on over
limits while zinc was analyzed by ICP and lead by fire assay.

Certain technical engineering data is also being collected from the
core including RQD (Rock Quality Designation), recovery, photographs
and specific gravity measurements. Specific gravities of mineralized
core are ranging from 2.7 to 3.15 grams per cubic centimeter (tonnes
per cubic meter). They have been measured on site and are being sent
out for third party confirmation.

The foregoing geological disclosure 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 the Company.

ABOUT KOOTENAY

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

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.

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 and President
(403) 238-6986

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





Copyright © Hugin AS 2008. All rights reserved.