Mr. Graeme O'Neill reports

BAYHORSE SILVER INITIATES UNDERGROUND SAMPLING PROGRAM FROM HISTORICAL SILVER ZONE, HUNTINGTON, OREGON USA

Bayhorse Silver Inc. has completed the major necessary engineering and safety work in rehabilitating the adit to the intermediate-level mine workings at the Bayhorse silver mine, Huntington, Ore., United States. Silver price increases to over $17 (U.S.) per ounce have triggered numerous analysts to predict more significant increases ahead. The company is well positioned to take advantage of further silver price increases.

The company is now able to commence verification of the silver grades that Silver King reported from its 1984 underground drill program and mining production. Additionally, the company will confirm the historical mineralized zone averaging 85 feet in width, 22 feet in thickness, with a known length of 840 feet (Herdrick, 1981). The company will also accurately survey the location where Silver King blocked out two zones ready to mine totalling approximately 1,800 tons. These zones remained unmined when the mine ceased production due to low silver prices, and the company is preparing for its first extraction from these zones.

Assisting the company in its work is a team of independent geological and engineering consultants, including mining engineer Ron Krusemark of HRB Mining Services; Dr. Clay Conway, PGeol; Dr. Stewart A. Jackson, PGeol; Dr. G.E. Ray, PGeol; Dr. Richard Jolk, PEng, metallurgy; and M. Dufresne, MSc, PGeol, of Apex Geoscience. Assays and metallurgical work will be performed by Metsolve Metallurgical Labs. HRB has a highly experienced mining team at the Bayhorse silver mine, where underground work has been in progress since mid-March.

Silver King drilled 90 underground drill holes in 1984 totalling 15,000 feet and using a six-ounce-per-ton Ag cut-off grade, mined 5,718 tons averaging 16.7 ounces per ton Ag (572.5 grams per tonne Ag). Historic records indicate that of the 5,718 tons produced, 23 per cent graded between 21 ounces to 100 ounces per ton Ag, 71 per cent graded between six ounces to 20 ounces per ton Ag, and 6 per cent graded less than six ounces per ton Ag. Copper averaged 1 per cent Cu. The highest reported grade from the 1984 drilling, sampling and mining program was from a mined round, containing a tetrahedrite-tennantite-rich vein that assayed 691 ounces per ton Ag (23,691 g/t) and 15.72 per cent Cu.

Minerals Production Yearbook (Jacobsen, 1959) reported total historic production from the Bayhorse mine through 1959 as 286,000 ounces of silver from 8,300 tons of ore for an average of approximately 34.5 ounces per ton Ag (1,183 g/t Ag). Herdrick (1981) estimated remaining shipping ore to be 166,208 tons at an average grade of between 17 and 20 ounces per ton, at a 7.5-ounce-per-ton Ag cut-off, of which Silver King mined 5,718 tons at an average grade of 16.7 ounces per ton silver using a six-ounce-per-ton Ag cut-off. 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 a historic nature. Historic 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.

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