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 ANNOUNCES FURTHER UPDATES ON SULLY PROJECT

Kootenay Zinc Corp.'s (ZNK.C) Sully project team has recently completed a structural review of a portion of drill hole SY17-11. Specifically, core recovered in the modelled position of the E1 gravity mass of the east target was assessed. As described in previous news, the hole did not intersect an extensive mass in this position, but did intersect a number of geologically significant features with similarities to the Sullivan sedimentary environment.

Oriented core was obtained while drilling that allowed structural orientations of planar features (such as bedding, cleavage, veins, faults and dikes). The core and the feature must be reasonably intact to achieve an orientation. The data collected and logged in SY17-11, within the E1 zone of interest, form the basis for the following structural review.

At hole depths corresponding to the projected E1 gravity anomaly, several gouge-filled faults and broken zones are noted. The gouge zones range from two centimetres to 10 centimetres thick, some with associated core loss. However, it was noted the faults are commonly developed parallel to cleavage (dipping about 40 degrees west-northwest). Bedding above and below this interval is generally uniform and typically overturned; throughout the zone bedding is tightly folded and is repeatedly offset on cleavage planes. The folds appear to be symmetric, indicating a larger-scale fold-flexure developed across the entire zone of interest. Movement during folding caused rocks at higher levels to be shifted east of rocks below them on reverse-type faults.

Because the strata are steep to overturned, the offsets would have created gaps or fault windows, and it is possible that SY17-11 passed from west of the zone of interest (and above such a fault) to east of it (below the fault). This structural possibility will continue to be evaluated as it provides an explanation that the E1 gravity anomaly is in proximity to the recently completed drill hole.

Modelling and interpretation of all the new geological and geophysical data are intended to assist in determining where, and at what depth, the E1 anomaly is likely to be found. The location and orientation of the next drill hole will be based on this information. The project team is also currently completing its review and modelling of new ground magnetic survey data recently collected over much of the extent of the gravity anomalies and of fill-in gravity data in the E1 anomaly area. The results of that work will be reported shortly.

About Kootenay Zinc Corp.

Kootenay Zinc is a mineral exploration and development company that is presently targeting the Sully property. The company is focused on discovering large-scale sedimentary-exhalative deposits.

The Sully property comprises 1,375 hectares located approximately 30 kilometres east of Kimberley, B.C., and overlies rocks of similar age and origin as those which host the world-class Sullivan deposit, owned by Teck Resources Ltd. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore, including approximately 300 million ounces of silver, eight million tonnes of zinc and eight million tonnes of lead.

The scientific and technical information contained in this news release has been reviewed and approved by the company's project manager, Paul Ransom, PGeo, a qualified person as defined in National Instrument 43-101, standards of disclosure for mineral projects.