Kootenay Resources Signs Option Agreement To Grant Centerra Gold Inc. Interest In The Copley Property In British Columbia, Canada

VANCOUVER, BC, April 20, 2022 /CNW/ - Kootenay Resources Inc. (the "Company" or "Kootenay") is pleased to announce the signing of an option agreement with a wholly owned subsidiary of Centerra Gold Inc. ("Centerra" TSX: CG and NYSE: CGAU), whereby Centerra is granted an option to earn a 70% interest in the Copley property located in the Nechako Plateau of Central British Columbia.

A total of C$4 million in exploration expenditures and C$400,000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70% interest. The first year requires a work expenditure with a minimum commitment of $250,000. Upon the fulfillment of these conditions, the two companies will enter a standard joint venture agreement with Kootenay retaining a 30% interest, and funding of further work will be done on a pro rata basis amongst the joint venture partners.

James McDonald President and CEO of Kootenay Resources states "We are very pleased to have signed an agreement with major gold producer Centerra Gold Inc. We look forward to benefiting from Centerra's expertise and consider their participation via the option agreement a reflection of our belief that the Copley property has the potential for the discovery of million ounce gold deposits."

The Copley property is host to a large area of gold mineralization along a 6.5 km long trend. Key features include:

• Potential to host a Blackwater-type deposit
• 6.5x1.5 km EW belt of late-Cretaceous(?) rhyolitic flow domes and diatreme rocks
• Large zones of argillic, silicic, and sulphidic alteration related to magnetic-lows
• Surface grab samples and channel samples with multigram Au associated with high Mo, As, Sb, Hg, Ba, Zn, Pb, Cu
• Drilling in 2010/2011 at Smoking Pipe intersected 9.27 g/t Au over 2 m with several broad lower grade intervals such as 1.5 g/t Au over 11 m, 0.87 g/t Au. Over 11.87 m and 0.27 g/t Au over 33 m.

Financing
Additionally, the Company announces the closing of its previously announced non-brokered private placement of 7,050,000 flow through shares at a price of $0.05 per share, raising aggregate gross proceeds of $352,500. Proceeds received from the private placement will be used for the development of the company's resource properties and general working capital requirements.

The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals. The shares to be issued under the Offering will have a hold period of four months and one day from Closing.

The securities described herein 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 accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.

About Kootenay Resources Inc.
KSR is an exploration company actively engaged in the exploration and discovery mineral projects in British Columbia, Canada.

On behalf of the board of directors of the Company:

James McDonald,
Director

No Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at April 19, 2022. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay 's expectations or any change in events, conditions or circumstances on which any such statement is based.

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.

SOURCE Kootenay Resources Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2022/20/c7392.html