Kootenay Gold Inc.

Kootenay Closes $8,250,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 04, 2008) - Kootenay
Gold Inc. ("Kootenay") (TSX VENTURE: KTN) is pleased to announce that
it has closed its non-brokered private placement (the "Offering") of
5,500,000 units ("Units") at a price of $1.50 per Unit, for total
gross proceeds of CDN $8,250,000.

Each Unit consists of one common share (a "Share") of Kootenay and
one-half of one non-transferable common share purchase warrant (a
"Warrant"). Each whole Warrant entitles the holder to purchase one
Share at a purchase price of $1.80 per Share until August 29, 2009.
Finders' fees were paid to certain finders at arm's length to
Kootenay in the aggregate of $369,285 cash, 94,500 units (the
"Finder's Units") and 340,690 non-transferable common share purchase
warrants (the "Finder's Warrants"). Each Finder's Unit has the same
terms as the Units offered under the Offering. Each Finder's Warrant
entitles the holder to purchase one common share (a "Finder's Warrant
Share") of Kootenay at a purchase price of $1.70 per Finder's Warrant
Share until August 29, 2009. All of the securities issued pursuant to
the Offering will have a hold period which expires June 30, 2008. The
net proceeds of the Offering will be used for the development of
Kootenay's resource properties and working capital requirements.


Kootenay is an emerging exploration Company actively developing
mineral projects in British Columbia, Canada and the Sierra Madre
Region of Mexico. The Company's top priority remains the ongoing
development of its Promontorio Silver project, which encompasses the
former producing Promontorio Silver Mine in Northwest Mexico.

To view a live interview with Jim McDonald on Kootenay's vision and
strategy visit: www.kootenaygold.ca.

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

Kootenay Gold Inc.
James McDonald
(403) 238-6986

Kootenay Gold Inc.
Ken Berry
(604) 601-5652 or 1-888-601-5650
Website: www.kootenaygold.ca