October 6, 2009
DRILLING BEGINS AT ROSETTA STONE PROPERTY

Vancouver, B.C.

- Kootenay Gold Inc.

TSX.V: KTN ("Kootenay") and Theia Resources Ltd.

are pleased to announce drilling is underway at the Rosetta Stone property.

The drill program is a first test on two newly discovered gold showings named the Road and Rosetta Stone showings.

The road showing which is 94 m long and 4 to 6 m wide and can be projected for another 450 meters along strike; and the Rosetta Stone showing which is exposed for 40 m of strike over 2 to 4 m wide before disappearing into overburden on both ends.

Grab samples from the Rosetta Stone showing range from background to 21.1 grams per tonne (gpt.), 11.4 gpt, 7.7 gpt., 16.6 gpt., 7.1 gpt.

and 3.8 gpt., with 11 of 29 samples grading more than 1.0 gpt gold.

Grab samples from the Road showing ranged from background to a high of 17.0 gpt.

gold.

The drill program will consist of between 800 and 1200 meters of NQ sized diamond drill core and is being conducted by Ridgeline Drilling Ltd.

of Smithers B.C.

Gold mineralization is associated with silicified breccia, quartz veins and veinlets and open space fillings associated with crustiform, colloform and (or) bladed quartz (chalcedony), quartz-carbonate replacement textures, localized sericitic alteration, and association with zinc, lead and copper.

These are field characteristics consistent with low sulphidation epithermal deposits.

Kootenay Gold Inc.

has granted an option to earn a 60% interest in the Rosetta property to Theia Resources in exchange for expenditures of $1 million dollars over five years and the issuance of 650,000 shares over a four year period (see news release dated November 28th, 2008 for details).

Rosetta Stone Property (Property) which comprises 26 mineral tenures covering 11,588 hectares located near Nakusp in southeastern British Columbia, Canada.

The foregoing geological disclosure has been reviewed and verified by Kootenay"s CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects).

Mr.

McDonald is a director of the Company.

About Kootenay
Kootenay is an emerging exploration Company actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada.

The Company"s top priority remains the ongoing development of its Promontorio Silver project in Sonora State, northwest Mexico, which encompasses the former producing Promontorio Silver Mine.

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For additional information, please contact:

James McDonald, CEO and President at 403-238-6986
or
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

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

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine.

We advise U.S.

investors that the SEC"s mining guidelines strictly prohibit information of this type in documents filed with the SEC.

U.S.

investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc.

Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties.

Actual results may differ materially from those currently anticipated in such statements. 2009 number 13