Kootenay Silver Inc.

Kootenay Silver Inc. is a junior silver exploration company headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 3 advanced exploration projects. Key assets include Promontorio-La Negra. The company operates as an exploration-stage enterprise with a business model centered on the discovery and acquisition of mineral deposits that demonstrate potential for economic development. Its operational approach involves leveraging an experienced internal technical team for advancing principal properties while concurrently seeking joint venture partners to fund exploration on its generative portfolio through option agreements. This dual strategy allows for focused capital deployment on high-priority targets and risk-mitigated exploration on secondary assets. The organization's technical capabilities include sophisticated resource evaluation methodologies, utilizing advanced geological modeling, various interpolation techniques such as Inverse Distance Squared and Ordinary Kriging, and conceptual pit optimization tools to assess reasonable prospects for eventual economic extraction. Preliminary metallurgical investigations are integral to the evaluation process, exploring various processing flowsheets including sequential flotation, pressure oxidation, and cyanidation to determine potential recovery rates and concentrate characteristics early in the development cycle.

Strategic priorities are centered on resource base expansion through aggressive and systematic exploration programs. The approach involves large-scale drilling campaigns, often exceeding 15,000 meters, designed to test mineralized systems with step-out drilling both along strike and to depth. Favorable results from initial phases are used to justify expanded programs aimed at increasing drill density and defining the scale of discoveries. Capital allocation is primarily directed towards these exploration activities and securing property commitments, funded through a multi-faceted financing strategy that includes best-efforts private placements, public offerings via shelf prospectuses, and an at-the-market equity distribution program. To enhance its market position and access to capital, the enterprise engages specialized financial services firms to organize investor roadshows and provide targeted marketing and advisory services. The entity also pursues value creation by resolving conflicting property interests and amending option agreements to optimize payment schedules and preserve working capital for core exploration objectives.

Executive leadership is composed of industry professionals with extensive experience in mineral exploration, corporate finance, and operations. The President and Chief Executive Officer is also the president of a private geological consulting firm and has served as a director for other resource companies. The Chairman, formerly the company's President, provides expertise in finance and corporate communications and has held executive roles at other mining corporations. The board of directors includes individuals with specialized expertise, such as a corporate lawyer with over 30 years of experience, including a role as Chief Legal Officer during a C$1.8 billion corporate acquisition, and a former Chief Financial Officer of several mineral exploration and producing companies. Governance is overseen by an Audit Committee comprising 3 independent and financially literate directors, operating under a formal written charter. The organization manages potential conflicts of interest, which may arise from directors serving on other resource company boards, by adhering to statutory requirements for disclosure and abstention from voting on relevant matters.

The corporate organization consists of the parent entity and 4 wholly-owned operational subsidiaries: Northair Silver Corp., Grupo Northair de Mexico, S.A. de C.V., Minera J.M. S.A. de C.V., and Servicios de Exploraciones Sonora S.A. de C.V. In July 2022, the enterprise divested its 35% interest in a joint venture company to its partner, Aztec, in a transaction for 10,000 common shares of the partner and a retained 0.5% Net Smelter Return Royalty. Subsequently, in May 2023, the organization sold a significant portion of the acquired shares, reducing its ownership to approximately 8.02% and ceasing to be an insider of the former partner. A key corporate development in 2023 was the consolidation of 100% ownership of a principal mineral property, which was achieved through a series of staged payments initiated in November 2018. To adjust its capital structure, the company completed a 10-to-1 consolidation of its common shares, effective November 14, 2023. The entity has also entered into numerous material contracts governing property rights, including exploration agreements with options to purchase and temporary occupation agreements.