Bayhorse Silver Upgrades Silver Values by a Factor of 8 at its Bayhorse Mine, Oregon, USA

September 7, 2016   BHS2016-015

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) is pleased at the excellent Dense Media Separation (DMS) results from Met-Solve Labs on a composite 136 kg (300lb) sample submitted from the Bayhorse Silver Mine, Oregon, USA.(BHS2016-10, July 7, 2016)

A silver upgrade of 8 times was achieved from a head grade sample assaying 134.78 g/t (3.9 oz/t) Ag. The process used a heavy media of 2.75 Specific Gravity (SG) and a substantial 90.9% of the material was rejected in the float fraction.

This created a concentrated sink fraction of 9.1% of the material that contained 1,072.37 g/t (1.07 kg/t or 31.12 oz/t) silver 5.63% copper and 4.674% zinc. The head grade of the sample was 134.78 g/t (3.9oz/t) Ag. The optimum separation size for the Dense Media process, is between 1mm and 25mm.

110kg (240lb) of mineralized fines material was crushed separately to determine possible additional silver recovery from reject material from the DMS process. An encouraging 4.2% of the fines (4.6kg or 10.1lbs) were recovered grading 3,349 g/t (97.4 oz/t) Ag, 91.02kg (200.26lbs) Cu and 53.2Kg (117lbs) Zn. (http://www.bayhorsesilver.com/mineralization-rocks-at-the-mine/)

This demonstrates that fines generated from crushing the DMS material, and from the DMS float rejects can be gravity processed for additional metals recovery utilizing a Wilfley table and two products can be made:, a direct shipping mineralized material and a high grade mineralized material derived from the DMS fines.

Bayhorse CEO Graeme O’Neill comments that “the Company’s geological consultants have advised that with the excellent DMS and other gravity results, the Company should target the much larger tonnage at the lower cutoff grade as estimated by Herdrick (1981), where using a 3.5 oz/t cutoff remaining shipping mineralized material was estimated to be 577,000 tons and using a 7.5 oz/t Ag cutoff, 166,208 tons at an average grade of between 17 and 20 oz/t “. Silver King mined 5,718 tons at an average grade of 16.7 oz/t silver using a 6 oz/ton Ag cut-off.