Kootenay step-out drilling encounters 551 g/t silver & 20% combined lead zinc; 43-101 report confirms high probability of new mineral discoveries at Promontorio

	    VANCOUVER, Jan. 14 /CNW/ - Kootenay Gold Inc. (KTN: TSX.V) is pleased to
announce step-out drill results and the updated 43-101 Report for the
Promontorio Silver Project in Sonora Mexico. Highlights of step-out drill
results include 551 g/t silver, 0.63 g/t gold and 20% combined lead-zinc over
3.0 meters in KP 64 at the Ranch EM target. These results show similarities to
the Main Pit Zone discovery area where brecciated mineralization grading 46.5
meters of 0.71 g/t gold, 71 g/t silver and 2.09 % lead-zinc was encountered in
KP 58 in a step out to the southwest. The Dorotea area is confirmed to be
traceable to the northwest for up to 1000 meters.

	    The 43-101 Report states:

	    "Exploration work completed by Kootenay has demonstrated the Promontorio
Property is highly prospective for large low to intermediate sulphidation
epithermal systems that may have developed in close proximity to a shallow
level porphyry system" and "There is a high probability that significant new
mineral discoveries will be made on the property."

	    UPDATE ON STEPOUT DRILLING

	    The current phase of drilling Kootenay has completed 4,273.5m in 13
diamond drill holes over four prospect areas.

	    Promontorio Main Pit Zone, KP-58-09 to KP-59-09

	    Two holes were drilled as an approximate 50 meter southwest step out of
the Main Pit Zone:

	    <<
	        -  KP 59 encountered mineralized breccia grading 46.5 meters of
	           0.71 g/t gold, 71 g/t silver and 2.09 % lead-zinc.
	        -  KP 58 drilled some 100 meters to the southeast encountered weakly
	           anomalous values.
	    >>

	    Ranch EM anomaly, KP-60-09 to KP-65-09

	    The first set of holes in the Ranch EM Zone are positive showing a large
target area as defined by the extensive alteration over 500 meters of cross
section with values of:

	    <<
	        -  KP 64: 3.0 meters of 0.63 g/t gold, 551 g/t silver and 20%
	           combined lead-zinc.
	        -  KP 60: 18 meters of 0.58 g/t gold, 13 g/t silver and 0.68%
	           lead-zinc including 2.0 meters 1.49 g/t gold, 26 g/t silver and
	           1.24 % lead-zinc.
	    >>

	    Dorotea, KP-66-09 to KP-68-09

	    Holes KP 66 to 68 were drilled along strike of the Dorotea discovery.
Holes KP 66 and 67 were drilled 80 meters northwest of KP 55 to 57 and KP 68
was drilled 80 meters to the southeast along strike. All holes intersected the
sulphide zone returning:

	    <<
	        -  KP 68: 6.0 meters of 1.56 g/t gold, 26 g/t silver and 1.71 %
	           lead-zinc
	        -  KP 67: 10.5 meters of 0.97 g/t gold, 31 g/t silver and 0.65 %
	           lead-zinc; including 3.0 meters of 1.83 g/t gold, 58 g/t silver
	           and 0.98 % lead-zinc,
	        -  KP 66: 3.0 meters of 0.57 g/t gold, 29 g/t silver and 2.45 %
	           lead-zinc.
	    >>

	    Fault offsets are apparent and more than one zone may be present.
Mineralization is open ended and additional drilling is required. Hole KP 69
was drilled into a copper showing which is 160 meters southwest of KP 55 to KP
57 and assays are pending.

	    Dorotea Northwest, KP-70-09 to KP-71-09

	    KP 70 to 71 are approximately 1000 and 600 meters, respectively to the
northwest of the Dorotea discovery, results are pending.

	    Drill results continue to confirm the large size potential of Promontorio
with significant mineralization being encountered in all target areas tested
in the current program to date.

	    <<
	    Table of Significant Intercepts

	    -------------------------------------------------------------------------
	               FROM     TO    Interval    Au      Ag     Pb     Zn    Pb-Zn %
	      HOLE      (m)     (m)      (m)    (ppm)   (ppm)    (%)    (%)  combined
	    -------------------------------------------------------------------------
	    KP-58-09  no significant results
	    -------------------------------------------------------------------------
	    KP-59-09   188.5   235.0    46.5    0.71      71    1.03    1.06    2.09
	      inc      190.0   196.0     6.0    0.43     131    2.05    2.07    4.12
	      inc      200.5   220.0    19.5    0.95      59    0.89    0.97    1.86
	      inc      223.0   232.0     9.0    1.03      83    1.19    1.26    2.45
	    -------------------------------------------------------------------------
	    KP-60-09    85.0   103.0    18.0    0.58      13    0.37    0.32    0.68
	      inc      101.0   103.0     2.0    1.49      26    0.72    0.52    1.24
	      AND      121.0   142.0    21.0    0.31      11    0.19    0.23    0.42
	    -------------------------------------------------------------------------
	    KP-61-09  no significant results
	    -------------------------------------------------------------------------
	    KP-62-09      hole abandoned
	    -------------------------------------------------------------------------
	    KP-63-09     results pending
	    -------------------------------------------------------------------------
	    KP-64-09   187.5     189     1.5    0.24     240    0.50    0.95    1.45
	      AND      222.0   225.0     3.0    0.63     551   11.40    8.87   20.27
	    -------------------------------------------------------------------------
	    KP-65-09  no significant results
	    -------------------------------------------------------------------------
	    KP-66-09   127.0   134.5     7.5    0.14       6     0.11   0.06    0.17
	      AND      151.0   191.5    40.5    0.15       6     0.13   0.13    0.28
	      incl     161.5   164.5     3.0    0.57      29     0.90   1.55    2.45
	    -------------------------------------------------------------------------
	    KP-67-09   109.0   119.5    10.5    0.97      31     0.30   0.35    0.65
	      incl     116.5   119.5     3.0    1.83      58     0.47   0.51    0.98
	    -------------------------------------------------------------------------
	    KP-68-09   189.0   195.0     6.0    1.56      26     0.74   0.98    1.71
	    -------------------------------------------------------------------------


	    Drill Hole Collar Summary

	    ------------------------------------------------------------------------
	    HOLE_ID      UTM_E     UTM_N     DIP   AZIMUTH   DEPTH       TARGET
	    -------------------------------------------------------------------------
	    KP-58-09    628480    3110710    -60     335    453.5     Main Pit Zone
	    -------------------------------------------------------------------------
	    KP-59-09    628430    3110815    -60     335      459     Main Pit Zone
	    -------------------------------------------------------------------------
	    KP-60-09    627803    3111144    -60      60      300    "Ranch EM" Zone
	    -------------------------------------------------------------------------
	    KP-61-09    627680    3111075    -60      60      347    "Ranch EM" Zone
	    -------------------------------------------------------------------------
	    KP-63-09    627555    3111002    -60      60      303    "Ranch EM" Zone
	    -------------------------------------------------------------------------
	    KP-64-09    627442    3110942    -60      60      300    "Ranch EM" Zone
	    -------------------------------------------------------------------------
	    KP-65-09    627442    3110942    -60     100      300    "Ranch EM" Zone
	    -------------------------------------------------------------------------
	    KP-66-09    626851    3111540    -60      30      232        Dorotea
	    -------------------------------------------------------------------------
	    KP-67-09    626851    3111540    -45      30      198        Dorotea
	    -------------------------------------------------------------------------
	    KP-68-09    627008    3111484    -50      30      231        Dorotea
	    -------------------------------------------------------------------------
	                                                              Copper zone -
	    KP-69-09    626936    3111350    -60     225      198      Dorotea SW
	    -------------------------------------------------------------------------
	                                                               Dorotea NW -
	                                                              chargeability
	    KP-70-09    626186    3112304    -70     135      441        anomaly
	    -------------------------------------------------------------------------
	    KP-71-09    626371    3111818    -45      30      211      Dorotea NW
	    -------------------------------------------------------------------------
	    KP-72-09    626371    3111818    -65      30      300      Dorotea NW
	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------
	                                                  4,273.5m
	    -------------------------------------------------------------------------
	    >>

	    UPDATED 43-101 REPORT

	    Highlights from the updated 43-101 report include recommendations that,
"Future exploration efforts should focus on defining a 43-101 Resource
Estimate for the Main Pit Zone, infill drilling on the Dorotea Prospect,
continued exploration drilling along mineralized northeast and northwest
trending structures and follow up ground exploration surveys to the north of
the Yaqui River over areas where base and precious metal showings have been
found."
	    The report goes on to recommend that, "The following work is recommended
for the Promontorio Property with the main focus directed at assessing the
economic potential of the Main Pit Zone, infill drilling on the Dorotea
Prospect, and additional exploration surveys over the areas where new
mineralization and or alteration zones have been outlined".

	    RECOMMENDED WORK PROGRAM

	    Phase I:

	    Exploration work directed at evaluating the surface extensions of the
mineralized zones along northeast and northwest trending structures that
bisect the Main Pit Zone and the Dorotea Prospect. In addition selected
airborne EM anomalies would be tested. Ground surveys would include:
geochemical sampling, three dimensional induce polarization, and trenching. A
total of 5,000 meters of drilling would be required to test mineralized
targets.

	    Phase II:

	    Would consist of delineation drilling and metallurgical testing of the
Main Pit Zone in order to better define mineralization and produce a NI 43-101
compliant Resource Estimate. Drilling would consist of approximately 30
reverse circulation (RC) and 5 HQ core holes, totaling 15,000 meters and be
focused on the area bounded between 628250E and 628650E and 3110800N and
3111000N. Reverse circulation drill-holes would target gaps within the present
Main Pit Zone drilling and be angled between 70 to 90 degrees. Additional
reverse circulation drilling would test the Main Pit Zone to the northeast of
holes KP-11-07 and PK-53-08 and to the southwest of KP-13-07 and KP-46-08.
Mineralized zones would be sampled at 1 to 1.5 meter intervals.

	    Phase III:

	    Work would focus on geological mapping, soil geochemical, geophysical,
and trenching surveys to the north of the Yaqui River where new mineralization
and or alteration zones have been located. A total of 3,000 meters of drill
core will be required to test targets generated from this work. In addition a
regional gravity survey is recommended to cover all areas and trends
associated with mineralizing events. The purpose of the survey would be to
define gravity targets suggestive of large hidden sulphide bodies and or
hidden high level porphyries.
	    The updated 43-101 Technical Report will be filed shortly and available
on SEDAR.

	    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.
	    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. The 43-101 Technical Report was
authored by Guy Mac Gillivray, P.Geo (a qualified person for the purpose of
National Instrument 43-101, Standards of Disclosure for Mineral Projects) who
was contracted independently to write the report.

	    ABOUT KOOTENAY

	    Kootenay is an emerging exploration Company actively developing several
mineral projects in the Sierra Madre Region of Mexico and in British Columbia,
Canada. Numerous joint-venture partnerships maximize the potential for new
discoveries. 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.

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

	    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.






-30-

	    /For further information: James McDonald, CEO and President at (403)
238-6986; or Ken Berry, Chairman at (604) 601-5652, 1-888-601-5650;
www.kootenaygold.ca/