Kootenay Silver Inc. and Northair Silver Corp. announced that the companies have entered into a definitive arrangement agreement pursuant to which Kootenay has agreed to acquire all of the issued and outstanding common shares of Northair. The senior executive team and the Board of Directors of the combined company will draw from the extensive experience and expertise of both companies.

Mr. Ken Berry will remain Chairman and Mr. James McDonald will remain as President &Chief Executive Officer of the combined company. Upon closing of the Transaction, Ms. Andrea Zaradic and Mr. Tony Redaof Northair will be appointed to the Kootenay board of directors.