Star Metro - Kootenay Resources Announces Sale of the Two Times Fred Property

The Company and Evolution have also concurrently entered into a net smelter returns royalty agreement for Evolution to grant the Kootenay NSR to the Company. Up to the commencement of commercial production on the Property, the Company granted Evolution the option to purchase one-half of the Kootenay NSR for the cash payment of CAD$3,000,000 to the Company (the "Buy-Down Option"). If Evolution exercises the Buy-Down Option, the Company will fully exercise the option to acquire and extinguish a pre-existing third-party underlying 2% net smelter returns royalty on the Property (the "Underlying NSR"), and thereafter the Kootenay NSR will be a 1.0% net smelter returns royalty on the Property payable to the Company. If Evolution does not exercise the Buy-Down Option, the Company may acquire the Underlying NSR, or Evolution will be required to pay any royalty payments owing under the Underlying NSR, which will reduce royalty payments owing to the Company under the Kootenay NSR.

Evolution is at arm's length to Kootenay.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Kootenay Resources Inc.

Kootenay is an exploration company actively engaged in the exploration and discovery mineral projects in British Columbia, Canada. The Company was formed as a spin-out of Kootenay Silver Inc. in which prospective Canadian assets were transferred to Kootenay Resources Inc. The transaction was completed in October of 2021; Kootenay Silver currently holds 5.4 million common shares of Kootenay.

On behalf of the board of directors of the Company:

James McDonald,

Director

For additional information, please contact:

James McDonald, Director, at 403-880-6016

Raj Kang, Director, at 604-601-5650

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at the date of this news release, unless otherwise noted. 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, unless otherwise noted. 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. More particularly, this news release contains forward-looking statement pertaining to, among other things, payments on net smelter returns royalties and the exercise of rights to repurchase such royalties. These forward-looking statements are based on a number of assumptions which may prove to be incorrect including, but not limited to, the inability of the Company to collect payments on its net smelter returns royalty.

SOURCE: Kootenay Resources Inc.

View the original press release on ACCESS Newswire

A.Gagnon--SMC