Mr. Graeme O'Neill reports

BAYHORSE SILVER - SHIPS ORE-SORTER MATERIAL TO STEINERT US - PREPARES FOR RECOMMENCEMENT OF UNDERGROUND OPERATIONS AT THE BAYHORSE SILVER MINE, OREGON, USA

Bayhorse Silver Inc. has shipped approximately 3,000 kilos (6,600 pounds) of crushed mineralization to Steinert US to refine the ore-sorting equipment algorithm settings to ensure maximum separation of mineralized from non-mineralized material. By removing non-mineralized material from the process stream before final upgrading, substantial cost savings can be achieved in the crushing operations.

The company is ready to recommence underground operations to extract up to 10,000 tons of mineralized material from the Bayhorse silver mine. A highly experienced mining team is currently preparing the mine site for this work. The company is continuing crushing and upgrading operations.

The company has incurred approximately $1.4-million (U.S.) of expenditures on the Bayhorse silver mine project toward the required $1.5-million (U.S.) in property expenditures in order to earn its 80-per-cent interest in Amcor's mining lease and anticipates the remaining property expenditure will be completed by the end of May, 2017.

The company has extended the 20-cent warrants expiring July 31, 2017, for an additional 12 months until July 31, 2018.

The company advises it is not basing any 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.

Bayhorse Silver, a junior exploration company, is earning an 80-per-cent interest in the historic Bayhorse silver mine, Oregon, United States. Bayhorse is also earning a 75-per-cent interest in the past producing Bridging the Gap project, consisting of Asarco's historic Crown Point, Silver King, Ranger, Wyoming, Curlew and Blackhawk silver/lead/zinc mines in Idaho's Silver Valley. The company has an experienced management and technical team with extensive exploration and mining expertise.