Kootenay Gold Inc. - Drilling commences on Jumping Josephine Gold Project

Shares Outstanding: 37,226,600

VANCOUVER, Aug. 3 /CNW/ - Kootenay Gold Inc. ("Kootenay") (KTN: TSX.V) and Astral Mining Corporation (AA: TSX.V, AA.WT) are pleased to announce that an initial 3,000m drill program has commenced on the Jumping Josephine (JJ) Gold Project in southern British Columbia that will test up to six high-potential targets including extension drilling on the previously identified JJ Main mineralized gold zone. Concurrent with drilling, the summer program consisting of trenching, soil sampling and mapping continues on the project. To date eight NQ diamond drill holes totaling 2,019m have been completed and two batches of core samples have been submitted for assay.

Work conducted since 2006 has delineated a gold-bearing quartz stockwork zone 900m long to a depth of 240m at JJ Main with drill intercepts including 7.01 g/t Au over 19m (estimated true width 12.6m) from hole 07JD013 and 12.44 g/t Au over 8m (estimated true width 5.5m) from hole 08JD048 (see July 12th 2007 and Nov 29th 2007 news releases). The JJ Main Zone occurs along a regional-scale structure that extends for over 3km.

The primary focus of the current drilling program is to test on regular intervals the 1.4km segment of the structure between the JJ Main Zone and the Highway showing for additional high-grade gold zones. If mineralized, this extension would bring the total known mineralized trend to 2.3km. Astral believes that the possibility of locating additional mineralized zones similar to JJ Main along the over 3km long structure, defined by aeromagnetics, soil geochemistry and local drilling and trenching, is excellent. In addition, other high priority gold targets including Big Sheep, Bonanza, Hillside and Borrow Pit will also be tested with initial drilling during the current program. Dorado Drilling of Vernon, B.C has been contracted to carry out the drilling program.

In the Big Sheep area a strong discrete arsenic soil anomaly with comparable intensity to the one related to the JJ Main Zone measures 500m by 140m with its long axis aligned parallel to the expected mineralized trend. Follow-up work will include mapping and prospecting to refine sites for eventual trenching and drill testing. All analyses from 494 infill and extension grid soil samples collected earlier in 2010 have now been received and plotted.

A total of 646m of trenching have now been completed in 11 trenches at the Big Sheep, Highway, Hillside and Siren showings. Selective chip and channel samples have been collected and have been submitted for analysis; results are pending.

TERMS OF OPTION

The Jumping Josephine Gold Project is owned 40% Kootenay and 60% Astral Mining. Kootenay entered into an agreement whereby Astral can earn 100% of the project (see news release dated December 12, 2009) by issuing Kootenay 4,000,000 shares of Astral and incurring exploration expenditures of $2,100,000.

SAMPLING, ASSAYING AND QA/QC

All samples taken during 2010 exploration program are submitted to Eco Tech Laboratory Ltd, Kamloops. Soil samples are run for a multielement ICPMS aqua-regia digest (25 gram charge for gold). Routine drill and rock analyses are run for a 30 gram fire assay for gold and multielement package, aqua-regia digest and ICPOES finish. Any drill core intersecting mineralized quartz stockwork may contain coarse gold and as such is run for 1000 gram metallic screen fire assay rather than standard fire assay for gold. Astral incorporates its own standards and blanks in the sample sequence as part of ongoing QA/QC control. Technical details contained in this news release have been reviewed by Dale Brittliffe, P.Geo., a Qualified Person as defined in National Instrument 43-101.

ABOUT ASTRAL

Astral Mining Corporation is a Canadian company engaged in the exploration and development of precious metal properties in North America. By focusing on exploration in mining-friendly districts, the Company minimizes the political and social risks encountered in many other parts of the world. With a new gold discovery at the Company's Jumping Josephine Gold Project in Southern British Columbia and an experienced technical team and seasoned management, Astral is poised to leverage this expertise into early exploration success. Further details on Astral Mining Corporation and its high-quality portfolio of exploration projects can be found at www.astralmining.com.

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.

%SEDAR: 00016508E

SOURCE Kootenay Silver Inc.

For further information: 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


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