Mr. Graeme O'Neill reports

BAYHORSE SILVER - FAVOURABLE ORE-SORTING RESULTS ON STEINERT US EQUIPMENT

Bayhorse Silver Inc. has received favourable initial test results from run-of-mine silver mineralization from the Bayhorse mine, Oregon, United States, submitted to Steinert U.S., manufacturer of state-of-the-art ore-sorting equipment.

The Steinert X-ray transmission ore sorter (XSS) effectively identified and discriminated between mineralized and non-mineralized silver-bearing material, as well as differentiating higher (above 93 grams per tonne or three ounces per ton Ag) from lower (below 93 g/t or three ounces per ton Ag) grade mineralization. The XSS rejected 37 per cent from the stream as non-mineralized and retained 63 per cent of the run-of-mine stream. The material was sized between one inch (25 millimetres) and four inches (100 mm), and comprised high-grade, low-grade and non-mineralized material.

Steinert X-ray transmission ore sorter

The company will be shipping a larger (approximately two tons) sample of the Bayhorse mineralized material to Steinert U.S. to establish the crush size for the most effective sorting and rejection of unmineralized and lower-grade (under 93 g/t or three ounces per ton Ag) material. The XSS is designed to sort material at up to 60 tons per hour from material sized at 10 mm (0.35 inch) to 200 mm (eight inches). By narrowing the size range for ore sorting to between 12.5 mm (0.5 inch) to 32.5 mm (1.25 inches) and lowering the hourly throughput, the XSS can achieve better discrimination between low grade and the higher grades, and more effectively upgrade the mineralization.

Bayhorse chief executive officer Graeme O'Neill commented: "By using the XSS we could increase the proposed daily tonnage throughput from 100 tons/day to 150 tons/day with no other changes to the current in-place crushing-upgrading circuit. As the XSS uses no water and has a low power consumption requirement, we believe its use could have a substantial effect in reducing processing costs and increasing recoverable mineralization."

He also notes that Adam Hamilton, of Zeal Research, has an article posted on 321Gold discussing silver's potential upside in 2017.

This news release has been prepared on behalf of the Bayhorse Silver board of directors, which accepts full responsibility for its contents. Dr. Clay Conway, PGeol, a qualified person and director of the company, has prepared, supervised the preparation of, or approved the technical content of this press release.