Eric Sprott Announces Holdings in Kootenay Resources Inc.

Toronto, Ontario--(Newsfile Corp. - October 27, 2022) - Eric Sprott announces that on August 22, 2022, common share purchase warrants of Kootenay Silver Inc. ("KS Warrants") (held by 2176423 Ontario Ltd., a corporation he beneficially owns) expired unexercised. Combined with prior treasury issuances of common shares (Shares) by Kootenay Resources, this resulted in a decrease in holdings of approximately 6.1% of the outstanding Shares since the date of the last early warning report. The KS Warrants entitled the holder to receive, upon due exercise, 0.04 Share (in addition to one common share of Kootenay Silver Inc.)

Prior to the expiry of these KS Warrants, Mr. Sprott beneficially owned and controlled 1,206,000 Shares and the right to receive 675,000 Shares upon exercise of all his KS Warrants, representing approximately 5.2% of the outstanding Shares on a non-diluted basis and approximately 8.1% on a partially diluted basis assuming the exercise of such Warrants. After the KS Warrant expiry, Mr. Sprott beneficially owned and controlled 1,206,000 Shares, representing approximately 5.2% of the outstanding Shares. The KS Warrants expiry resulted in a partially diluted ownership change of greater than 2% (to below 10%) and, therefore, the filing of an update to the early warning report. As a result, Mr. Sprott and 2176423 Ontario Limited ceased to be insiders of Kootenay Resources.

The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Kootenay Resources is located at Suite 1125 - 595 Howe Street, Vancouver, British Columbia, V6C 2T5. A copy of the early warning report with respect to the foregoing will appear on the company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/142188