Mr. Graeme O'Neill reports

BAYHORSE SILVER COMMENCES CRUSHING AND UPGRADING OPERATIONS AT THE BAYHORSE SILVER MINE, OREGON, USA.

Bayhorse Silver Inc. has commissioned the crusher/upgrader equipment at its Bayhorse silver mine and commenced crushing and upgrading silver-bearing mineralized material recently extracted from the mine.

The upgraded material will be stockpiled at the mine in 1,000-kilogram (2,200 pounds) supersacks that will be individually assayed. Samples of the material and the assays will be submitted to interested potential purchasers.

The company anticipates that up to 10,000 kilograms of sacked upgraded material will be available for shipping by the end of April, 2017, with increasing quantities available as upgrading operations ramp up.

Three supersacks containing 3,000 kilograms (6,600 pounds) of crushed mineralization will be shipped to Steinert US to refine the ore-sorting equipment algorithm settings to ensure maximum ore-sorting separation of non-mineralized from mineralized material. By removing non-mineralized material from the process stream, substantial processing cost savings can be achieved.

With the crushing/upgrading plant commissioned, the company will now focus on extracting up to 30,000 tonnes of mineralized material from the intermediate and upper workings of the Bayhorse silver mine for upgrading.

Bayhorse chief executive officer Graeme O'Neill commented, "This milestone could not have been achieved without the support of its stakeholders, shareholders, and the dedication and professionalism of its consultants and on-ground personnel who are committed to bringing the Bayhorse silver mine to an operational state."

Historically, Silver King Mines drilled 90 underground drill holes in 1984 totalling 15,000 feet. Using a silver cut-off grade of six ounces per ton, mining of 5,718 tons averaging 16.7 ounces per ton silver (572.5 grams per tonne silver) was accomplished. Historical records indicate that of the 5,718 tons produced, 23 per cent graded between 21 and 100 ounces per ton silver, 71 per cent graded between six and 20 ounces per ton silver, and 6 per cent graded less than six ounces per ton silver. On an overall basis, copper averaged 1 per cent. The highest-grade sample reported from the 1984 drilling, sampling and mining program assayed 691 ounces per ton silver (23,691 grams per tonne) and 15.72 per cent copper from a mined round containing a tetrahedrite-tennantite-rich vein.

Minerals Production Yearbook (Jacobsen, 1959) reported total historical production from the Bayhorse mine through 1959 as 286,000 ounces of silver from 8,300 tons of mineralization for an average of approximately 34.5 ounces per ton silver (1,183 grams per tonne silver). Herdrick (1981) estimated remaining shipping material to be 166,208 tons at an average grade of between 17 and 20 ounces per ton at a cut-off of 7.5 ounces per ton silver, of which Silver King mined 5,718 tons at an average grade of 16.7 ounces per ton silver using a cut-off of six ounces per ton silver. No mining has been conducted at the Bayhorse silver mine since Silver King ceased its 1984 mining program.

The company advises that this information is of historical nature. Historical production estimates, drill information and grades reported have not been verified. A qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves, and the company is not treating the historical estimates as current mineral resources or mineral reserves.

The company advises it is not basing its decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability, and also advises there is increased uncertainty and specific economic and technical risks of failure associated with its production decision.

This news release has been prepared on behalf of the Bayhorse board of directors, which accepts full responsibility for its contents.

Dr. S. A. Jackson, PGeo, a qualified person, has prepared, supervised the preparation of or approved the technical content of this press release.

About Bayhorse Silver Inc.

Bayhorse is earning an 80-per-cent interest in the historical Bayhorse silver mine in Oregon. Bayhorse is also earning a 75-per-cent interest in the past-producing Bridging the Gap project, consisting of ASARCO's historical Crown Point, Silver King, Ranger, Wyoming, Curlew and Blackhawk silver/lead/zinc mines in Idaho's Silver Valley.