Mr. Graeme O'Neill reports

BAYHORSE SILVER ANALYSIS OF PEGASUS PROJECT GEOLOGICAL MAPPING PROGRAM

Bayhorse Silver Inc.'s preliminary analysis of the recent geological mapping program of its Pegasus project, Idaho, United States, has been completed.

The company's Bayhorse Silver geological team has concluded from the mapping program that there are a number of small intrusive rhyolite bodies scattered in the Pegasus project area. They attest to the presence of a contemporary magma source(s) at depth, which magma source(s) could now be represented as shallow granite bodies. It can be inferred that such bodies could potentially be mineralized, based on 1) mineralization in and near the rhyolite masses; 2) the nearby presence of silver associated with rhyolite (Bayhorse Silver mine just across Snake River in Oregon); and 3) the recent discovery of porphyry copper mineralization by Hercules Metals in a similar geologic-mineral setting only 44 kilometres (km) to the north.

There are three distinct varieties of rhyolite in the Pegasus project area suggesting multiple sources or multiple magmatic pulses in the source areas. Some of the rhyolite bodies show features of mineralization: veining, alteration and fracturing/brecciation. Veins vary from locally pervasive microveins in fractures to large sulphide-bearing quartz veins with anomalous gold, silver, copper, antimony and arsenic. Mineralization is also found locally in the host sedimentary rocks of the Jurassic Weatherby formation. Historic prospect pits and trenches are present in both rhyolite and sedimentary rocks.

The rhyolite bodies are in close proximity to low-resistivity geophysical anomalies that indicate the presence of conductive bodies from depths of 25 to 525 metres. These bodies are potentially granitic masses bearing conductive copper sulphide minerals and thus represent prospective drilling targets.

Drilling approval has been received for a minimum five hole drill program, planned around the main low-resistivity anomaly and extrapolated extension, in the southeast corner of the survey area.

Bayhorse chief executive officer Graeme O'Neill comments: "We are very pleased with the Bayhorse team in completing the preliminary geological analysis of the Pegasus project and getting quick approval for the drill program. We know a lot more work, including geophysics, will have to be done to make the picture clearer, but the first steps of our Pegasus journey have been completed and we are looking forward to drill testing the anomalies to confirm mineralization and geophysical work to increase our understanding of the extent of that mineralization."

About Bayhorse Silver Inc.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine located in Oregon, United States and the Pegasus project, in Washington county, Idaho.