VANCOUVER, BRITISH COLUMBIA--(Marketwire - January 09, 2009) -
Kootenay Gold Inc. (TSX VENTURE: KTN) ("Kootenay") is pleased to
announce drill results from 16 holes at its 100% owned Promontorio
Silver Discovery located in Sonora State, Mexico. Nine holes reported
are from the PIT Discovery Zone and seven are "large step out"
exploratory holes. A total of 57 holes have now been drilled on
Promontorio, assay results are pending for an additional five drill
holes.

Jim McDonald, CEO of Kootenay commented: "Significant mineralization
and alteration encountered in the large step outs in the exploratory
holes KP39 to 43 are further confirmation of the size and strength of
the Promontorio mineral system and represent new drill targets. Given
the success of large scale step outs at Promontorio, Kootenay intends
to accelerate exploration to identify additional regional targets."

The exploratory holes are within the large IP anomaly (see enclosed
map) and step out 650 to 850 meters to the northeast (E or Northeast
Zone) and up to 475 meters to the northwest of the Pit Discovery
Zone. Holes KP 39, 40 and 41 tested the northeast end of the IP
anomaly in the east end of the E Zone. Strong alteration and
mineralization was encountered down to 650 vertical meters. Hole KP
43 drilled 475 meters northwest of the Pit Discovery Zone encountered
several intervals of vein dominant mineralization.

Highlights of results include:
--------------------------------------------------------------------------
                                                            AgEq
Drill                        From       To    Interval    (Ag,Au)    Pb+Zn
Hole                           (m)      (m)         (m)     (g/t)       (%)
--------------------------------------------------------------------------
Pit/Discovery Zone
KP-37-08                    83.92   123.70       39.78     79.60      1.85
 Incl.                     108.45   123.70       15.25    184.90      3.78
KP-44-08                     1.00   106.50      105.50     60.69      1.35
 Incl.                       1.00    33.00       32.00     95.31      1.80
KP-44-08                   130.50   136.50        6.00    138.20      1.39
KP-44-08                   180.50   185.00        4.50    128.50      3.13
KP-44-08                   202.00   321.00      119.00     72.21      2.25
 Incl.                     222.00   294.00       72.00     93.43      3.09
KP-47-08                    29.00    31.00        2.00    815.20      3.97
KP-52-08                   154.50   157.50        3.00    181.80      1.82
East/Northeast Zone
KP-39-08                   293.21   311.94       18.73     52.97      1.26
KP-39-08                   328.84   341.82       12.98     52.63      1.13
KP-39-08                   590.30   621.00       30.70     48.45      1.68
KP-40-08                   100.00   133.50       33.50    116.10      0.80
KP-41-08                   550.50   561.00       10.50     55.99      2.14
Northwest Zone
KP-43-08                   129.50   138.50        9.00     59.62      2.34

- Weighted averages for intervals including lost or unsampled intervals
  were calculated using zero values for the missing intervals
- Prices used in calculating AgEq: Au $790/oz, Ag $14/oz
- If an assay value was below the detectable limit a value halfway between
  the detectable limit and zero was used: Au less than 2 ppb equals 1 ppb;
  Ag less than 0.5 ppm equals 0.25 ppm; Pb less than 0.01% equals 0.005%;
  Zn less than 0.01% equals 0.005%
- Grades assume 100% recovery

Drill results announced include 16 of 21 holes, namely KP 37 to KP
52. A total of 57 holes have now been drilled on Promontorio and
assays are pending for holes KP 53 to KP 57. These holes consist of
more exploratory and step out in the Dorotea Zone some 1600 meters
northwest of the Pit Discovery Zone.

Holes KP 37, 38 and KP 42 to 48 and KP 50 and 52 were step out and
infill holes in the Pit Discovery Zone. Holes KP 49 and 51 tested
some veins in the west edge of the E Zone.

Eleven of the 16 holes contain mineralization which occurs as pyrite,
galena, sphalerite in veins, veinlets, disseminations and breccia
infilling along with calcite, quartz, sercite and propylitic
alteration.

Drill results are summarized in the following table.
--------------------------------------------------------------------------
                                                   AgEq
Drill       From   To   Interval     Ag     Au   (Ag,Au)   Pb    Zn  Pb+Zn
Hole          (m)  (m)        (m)  (g/t)  (g/t)    (g/t)   (%)   (%)    (%)
--------------------------------------------------------------------------
Pit/Discovery Zone
KP-37-08   83.92  123.70   39.78  54.85   0.44    79.60  0.84  1.01   1.85
 Incl.    108.45  123.70   15.25 142.20   0.76   184.90  1.76  2.03   3.78
KP-37-08  155.95  167.20   11.25  22.00   0.37    42.99  0.34  0.48   0.82
KP-37-08  244.70  251.83    7.13  44.39   1.22   113.50  1.12  1.26   2.38
KP-37-08  280.00  308.71   28.71  41.80   0.30    58.91  0.61  0.72   1.34
 Incl.    305.30  307.06    1.76 163.10   1.14   227.20  2.64  3.12   5.76
KP-37-08  316.50  336.97   20.47  23.27   0.38    44.44  0.34  0.40   0.73
KP-37-08  359.81  360.96    1.15  57.19   2.14   178.10  1.09  0.03   1.12
KP-44-08    1.00  106.50  105.50  34.26   0.47    60.69  0.65  0.70   1.35
 Incl.      1.00   52.50   51.50  43.23   0.64    79.29  0.73  0.79   1.53
 Incl.      1.00   33.00   32.00  48.87   0.82    95.31  0.86  0.94   1.80
KP-44-08  123.00  126.00    3.00  92.05   0.58   124.90  1.34  1.33   2.67
KP-44-08  130.50  136.50    6.00 111.30   0.48   138.20  0.65  0.75   1.39
KP-44-08  180.50  185.00    4.50  87.40   0.73   128.50  1.26  1.87   3.13
KP-44-08  202.00  321.00  119.00  52.30   0.35    72.21  1.15  1.10   2.25
 Incl.    222.00  294.00   72.00  70.57   0.41    93.43  1.55  1.54   3.09
 Incl.    222.00  319.50   97.50  61.76   0.38    83.10  1.36  1.31   2.68
KP-45-08  117.00  201.00   84.00   7.60   0.25    21.68  0.09  0.10   0.19
 Incl.    117.00  150.00   33.00   7.53   0.31    24.86  0.08  0.09   0.17
KP-46-08  171.00  172.50    1.50 125.30   1.92   233.60  2.71  3.14   5.84
KP-47-08   29.00   31.00    2.00 687.10   2.27   815.20  1.37  2.60   3.97
KP-50-08  162.00  163.50    1.50   2.00   2.69   153.80  0.12  0.24   0.36
KP-52-08  154.50  157.50    3.00  67.25   2.03   181.80  0.94  0.88   1.82
KP-52-08  247.50  250.50    3.00  29.80   0.98    85.21  0.45  0.42   0.88
KP-52-08  331.50  334.50    3.00  20.30   0.83    66.97  0.38  0.40   0.78
East/Northeast Zone
KP-39-08  293.21  311.94   18.73  37.58   0.27    52.97  0.60  0.66   1.26
KP-39-08  328.84  341.82   12.98  37.51   0.27    52.63  0.62  0.50   1.13
KP-39-08  450.85  520.24   69.39  16.44   0.17    26.08  0.47  0.37   0.84
 Incl.    492.00  513.63   21.63  22.89   0.26    37.54  0.67  0.47   1.13
 Incl.    463.70  483.34   19.64  20.16   0.15    28.46  0.54  0.57   1.10
 Incl.    450.85  483.34   32.49  17.29   0.17    26.93  0.48  0.43   0.92
KP-39-08  575.30  590.30   15.00  18.57   0.17    28.23  0.38  0.64   1.02
KP-39-08  590.30  621.00   30.70  30.67   0.32    48.45  0.74  0.94   1.68
KP-40-08  100.00  133.50   33.50  69.38   0.83   116.10  0.31  0.49   0.80
KP-40-08  174.00  241.50   67.50  12.44   0.23    25.41  0.13  0.18   0.31
KP-40-08  320.50  395.50   75.00  19.73   0.32    37.97  0.53  0.45   0.98
 Incl.    344.50  395.50   51.00  23.11   0.39    45.28  0.62  0.54   1.16
 Incl.    338.50  395.50   57.00  22.46   0.37    43.14  0.62  0.53   1.16
KP-41-08  523.50  565.50   42.00  22.73   0.08    27.34  0.54  0.49   1.03
KP-41-08  550.50  561.00   10.50  45.76   0.18    55.99  1.26  0.88   2.14
Northwest Zone
KP-43-08  129.50  138.50    9.00  47.35   0.22    59.62  0.97  1.37   2.34
KP-43-08  152.00  156.00    4.00   0.25   1.66    93.64  0.02  0.05   0.07
KP-43-08  195.00  228.00   33.00   5.31   0.24    18.98  0.11  0.23   0.34

- Weighted averages for intervals including lost or unsampled intervals
  were calculated using zero values for the missing intervals
- Prices used in calculating AgEq: Au $790/oz, Ag $14/oz
- If an assay value was below the detectable limit a value halfway between
  the detectable limit and zero was used
- Au less than 2 ppb equals 1 ppb; Ag less than 0.5 ppm equals 0.25 ppm;
  Pb less than 0.01% equals 0.005%; Zn less than 0.01% equals 0.005%
- Grades assume 100% recovery

The Pit Discovery Zone remains open to the northeast, partially to
the northwest and at depth to the southwest. The mineralization in
the E/Northeast Zone is open and it's shape and dimensions are yet to
be defined. Positive results from surface sampling indicate this
mineralization may come to surface. Mineralization 475 meters to the
northwest in KP 43 shows another zone may occur in that area. A
further 225 meters northwest of KP 43 is Zone A, where
tourmaline-silica breccias returned up to 6.5 grams per tonne gold
from grab samples.

Holes KP 38, 42, 48, 49 and 51 contained no significant intervals of
mineralization.

This drilling has defined two new areas of mineralization to be
pursued with further drilling. Integration of existing data with
detailed mapping underway will define specific drill targets for the
next phase of drilling.

Drilling

Drilling is all core and has been contracted to BDW International out
of Guadalajara Mexico and all core has been HQ sized. Drill hole
coordinates can be viewed at www.kootenaygold.ca.

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. Sample
lengths vary from 0.5 to 2.0 meters in width with the majority being
1.5 or 2.0 meters.

Certain technical engineering data is also being collected from the
core including RQD (Rock Quality Designation), recovery, photographs
and specific gravity measurements.

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.

To view the map accompanying this release please click on the
following link: http://media3.marketwire.com/docs/0109koot.pdf

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


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