SUNSHINE MINE

Kootenay Gold announced it has arranged a brokered private placement to raise gross proceeds of CAN$20 million. The financing will issue 25,000,000 units priced at CAN$0.80 per unit. The funds will be used for the proposed acquisition of Sterling Mining Company, Sunshine Mine, in a joint bid with Alberta Star Development Corp. to acquire 100% of the shares of Sterling Mining and its assets pursuant to a bankruptcy auction, and for working capital and Kootenay Gold’s general corporate purposes.

Minco Silver Corporation announces that the United States Bankruptcy Court, District of Idaho has ruled that the amount to cure the Sunshine Mine Lease is US$1,162,420.10 and the administrative costs are US$147,229.99 to SNS Silver Corp. for care and maintenance of the mine from the period between February to June 2009. This final ruling from the Court puts an end to the controversy surrounding the Sunshine Mine Lease between Sterling Mining Company and Sunshine Precious Metals Inc.. As a result, Sterling regained control and possession of the Sunshine Mine on August 19, 2009. Minco Silver is working closely with Sterling in the care and maintenance of the Sunshine Mine and dewatering of the mine is expected to commence shortly.

Minco Silver announced that on August 14, 2009 the United States Bankruptcy Court district of Idaho held that SPMI’s continued occupation of the Sunshine Mine is contrary to the best interest of the Sunshine Mine and ordered the possession of the Sunshine Mine be returned to Sterling Mining.