Vancouver, British Columbia--(Newsfile Corp. - October 19, 2026) - Bayhorse Silver Inc (TSXV: BHS) (OTCQB: BHSIF) (FSE: 7KXN) (the "Company" or "Bayhorse") is pleased to report that four of the recent underground diamond drill holes, intersected highly silicified hydrothermal breccia, that along with diamond drill hole DDH2024-01, has extended the known breccia zone to 160 m (528 ft) north to south and 180 m (594 ft) east to west and from 75 m (247 ft) to 318 m (1050 ft) below the known Mine workings. Assays from these holes are pending and the Company expects to report the results shortly.

The ongoing drilling program directed towards expanding the Bayhorse mineralized zone has confirmed Dr Clay Conway's structural and geological mapping of the Bayhorse Silver Mine where the top of the silver bearing rhyolite dyke has been cut and offset by east-directed thrusting, and the overlying segment has been displaced to the south. This displaced historically mined section, with an estimated vertical extent of 40 m (130 ft) and a minimun east-west extent of 227 m (750 ft) and average thickness of between 45 m and 60m (150 - 200 ft) is the area where the Company plans to mine based on the National Instrument 43-101 inferred resource of 292,300 tons containing 6.3 m ounces of silver at a grade of 21.65 opt (742.5 g/t) (Turner et al. 2018).

While the strike of the northern rhyolite zone is anticipated to be more than 227 m (750 ft) to the west, the full extent of the depth, width, and the extent and grade of mineralization will not be known until approval is received for the Company's surface drilling permit, that was applied for on February 20, 2026, and its surface drilling program is completed.

The Company has been advised by the Oregon Department of Geological and Mining Industries (DOGAMI) that although they received the surface drill permit application on February 20, 2026, due to the large number of other permit applications received, and due to limited staffing, there was a mandatory 90-day period, later amended to 180 days, before processing the application would commence. During this period, certain permit applications were being prioritized for processing by the Oregon Office of the Governor and the Oregon Legislature. As such, DOGAMI could give no certainty as to when the final review and approval of the Company's drill permit application would be completed. The approaching winter conditions may delay the completion of the Company's current surface drill program.

Bayhorse CEO Graeme O'Neill comments "While the DOGAMI permitting delay has been frustrating, we are pleased that Dr. Clay Conway, P. Geol.'s, comprehensive geological and structural mapping of the Bayhorse Silver Mine that postulated the extension of the rhyolite hosted mineralization to the north of the historic mined zones was confirmed by the ground-water test well MW-2 drilled in 2024. This hole intersected a reported 1.5 m (5 ft) grading 1104 g/t (35.46 opt) silver and 1.5 m (5 ft) 770 g/t (23.12 opt) silver mineralization within a mineralized 9 m (30 ft ) zone estimated between 21 - 30 m (70 - 100 ft) downhole as reported in the Company's news release BHS2025-12. The mineralization also included the critical minerals copper and antimony."

Figure 1. Thrusting has offset both the rhyolite and its related silver mineralization a minimum 60 m (200 ft) to the south from this newly recognized mineralized structure that will be drilled from surface. 

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Figure 2. Confirmed mineralized rhyolite zones with planned surface drill holes

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There is significant faulting and fault gouge above the northern rhyolite section resulting from the displacement of the upper mineralized section to the south. During the underground drilling, it was only possible to drill low angle holes (-30 to -45 degrees). This prevented any drilling of the northern underlying segment of mineralization, which is estimated to be 60-70 m (198 - 230 ft) north of, and 20-30 m (66-100 ft) below, the bottom of the south displaced section at the 706 m (2330 ft ) asl. As a result, the Company plans to drill these targets from surface drill sites.

As mineralization often lies peripheral to the hydrothermal breccia zones, the Company engaged ProSat to conduct a multi-spectrum satellite analysis to cover the area. In January 2024, a VTEM survey (BHS2024-06) identified a possible buried pluton lying 2-3 km north of the Bayhorse Mine which extends south to the mine area and its adjacent Pegasus Property. Further exploration will take place to identify other drill targets, both over and around this possible pluton and in the mine vicinity.

Figure 3. Multi-spectrum satellite imagery showing probable additional extent of Bayhorse mineralization overlying the Bayhorse Silver Mine and adjacent Pegasus properties.

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The ProSat satellite analysis looked at six independent layers consisting of structure, iron oxide, clay minerals, thermal anomaly, gravity and radiometrics as described on their website. Each layer captures a distinct physical phenomenon. Fused together via machine learning, they reveal what no single sensor can see alone.

When overlain on the 2024 VTEM survey, the satellite analysis correlates directly, and compares favorably to the 2025 IP survey. The signatures (dark orange representing areas of interest in Figure 3) identifies strong potential mineralized structures around the existing Bayhorse Mine workings extending from within the claim boundaries up to 365 m (1205 ft) north of the Bayhorse patented claims. This extends across the known Bayhorse Rhyolite trend (dotted red line in Figure 3) and onto the Pegasus claims, where the VTEM analysis and Dr Clay Conway's geological sampling and mapping has identified silver/copper/antimony bearing rhyolite and anomalous gold showings in the northern parts of the Pegasus Project (BHS2024-18).

Figure 4. Silicified hydrothermal breccia in drill core

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As reported in its December 2024 News Release (BHS2024-29) and in January 2025, it is thought that the epithermal silver mineralization and hydrothermal brecciation seen in the Bayhorse drilling could be related to a nearby or underlying pluton.

The Company and its engineering consultant continue to engage with Dogami for the approval of its surface drill permit, however, there can be no assurance that the Company will receive those permits on a timely basis.

The surface drilling permit delay will not affect the completion of the current ground water and geo-chem baseline studies for the Company's Full Mining Operating Permit application. The final groundwater test is underway and the baseline study report is anticipated to be completed before year end.

The Company continues to work with its independent technical consultant, Haley & Aldritch, Inc. ("H&A") to coordinate the significant amount of technical work required for the Bayhorse Mine Operating Permit application.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content. Mark Abrams, AIPG, a Qualified Person, and a Director of the Company, has prepared, supervised the preparation of, or approved the technical content of this news release.

About Bayhorse Silver Inc.

Bayhorse Silver Inc. is an exploration and production company with a 100% interest in the historic Bayhorse Silver Mine located in Oregon, USA with a National Instrument 43-101 inferred resource of 292,300 tons at a grade of 21.65 opt (673 g/t) for 6.3 million ounces of silver. (Turner et al. 2018) and the Pegasus Project, in Washington County, Idaho. The Bayhorse Silver Mine and the Pegasus Porphyry Copper Project are 44 km southwest of Hercules Metals' porphyry copper discovery. The Bayhorse Mine is a minimum environmental impact facility capable of processing at a mining rate of up to 200 tons/day that includes a state of the art 40 ton per hour Steinert Ore-Sorter that reduces waste rock entering the processing stream by up to 85%. The Company has established an up to 60 ton/day mill and standard flotation processing facility in nearby Payette County, Idaho, USA with an offtake agreement in place with Ocean Partners UK Limited. The Company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.

FORWARD-LOOKING STATEMENTS:

This news release includes certain statements that may be deemed "forward-looking statements". In particular, this press release contains forward-looking information relating to, among other things, the drilling program. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. In particular, these forward-looking statements are based on assumptions regarding: (i) stability in precious metals markets and silver prices; (ii) no further significant macroeconomic shocks or disruptions; (iii) continued market liquidity and investor access to capital; (iv) recovery of investor sentiment in the junior mining sector; and (v) timely receipt of required regulatory approvals. Factors that could cause the actual results to differ materially from those in forward-looking statements include: fluctuations in metal and commodity prices; continued availability of equity capital and financing; extreme market volatility and changes in investor sentiment; general economic, market, and business conditions; macroeconomic shocks and trade policy uncertainty; market liquidity constraints; timing and receipt of regulatory approvals (including from the TSX Venture Exchange); and risk that market recovery timing may differ materially from management expectations. Readers are cautioned not to place undue reliance on forward-looking statements. For a complete discussion of risk factors affecting the Company, please refer to the "Risks and Uncertainties" section of the Company's most recent Management's Discussion and Analysis available on SEDAR+ at www.sedarplus.ca. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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