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BHS.V ·

Bayhorse Ore-Sorter Operational at Bayhorse Silver Mine, Oregon, USA

Corporate Updates

Bayhorse Ore-Sorter Operational at Bayhorse Silver

Mine, Oregon, USA

Vancouver, British Columbia--(Newsfile Corp. - December 4, 2017) - Bayhorse Silver Inc. (TSXV: BHS) ("Bayhorse" or the

"Company") is pleased to report that on November 30, 2017, Steinert US commissioning personnel handed over the KSS100

X-Ray Transmissive "Ore-Sorter"

to Bayhorse CEO, Graeme O'Neill, in a fully operational state at the Bayhorse Silver Mine,

Oregon, USA.

Before handing over the Ore-Sorter to Bayhorse,

Steinert US personnel conducted their standard "on-site" comprehensive pre-

commissioning tests. The final step was installing the three ore-sorting algorithms that were developed from Bayhorse

mineralized material shipped to the Steinert US test facility at Walton, Kentucky, USA in May of this year. (See NR

BHS2017-14

)

Figure 1: Bayhorse Ore-Sorter and Steinert US technical commissioning personnel with Bayhorse CEO Graeme O'Neill and

Mine operating personnel.

To view an enhanced version of Figure 1, please visit:

http://orders.newsfilecorp.com/files/5015/30969_a1512361746245_74.jpg

Bayhorse CEO Graeme O'Neill comments

"Commissioning the

KSS 100 Ore-Sorter,

with

state- of- the -art sensing and sorting

technology, concludes a major milestone by installing cutting-edge technology to

separate mineralized from non-mineralized

material at the Bayhorse Silver Mine." "The Ore-Sorter is completely automatic, with sorting operations and performance

monitored remotely by both Steinert and the Company. Steinert can change the operational characteristics and sorting

algorithms of the Ore-Sorter at their US operations center, without ever needing to do a site visit."

Levi Duncan, Bayhorse Operations Manager, along with his two highly experienced mining teams from Idaho's Silver Valley, led

by Bayhorse Mine Supervisors, Josh Haynes and Jon Farrell, played a significant role in achieving this momentous occasion.

Upgrading the 1,300 tonnes of stockpiled silver mineralized oxide and sulphide material, from

underground development

conducted concurrent

with the Ore-Sorter

installation, will continue through to January, 2018. The Bayhorse Silver Mine operates

on a 7 day and week schedule.

The first mineralized material to be processed through the Ore-Sorter is from the Sunshine Zone in the upper level, where grab

samples from blasted mined rounds

assayed as shown in the following table: (previously disclosed in the Company's news

release

BHS2017-17

).

Sample Type

Au Oz/t

Ag Oz/t

Ag g/t

Grab, blasted round

<.001

0.80

24.88

Grab blasted round

0.001

2.70

83.98

Grab blasted round

0.005

62.50

1,943.96

Grab blasted round

<.001

0.50

15.55

Grab blasted round

0.006

69.60

2,164.80

Grab

blasted round

0.001

14.75

458.78

Grab

blasted round

0.001

17.90

556.75

Grab blasted round

0.004

52.78

1,641.64

Select blasted rock

0.003

68.76

2,138.67

Select blasted rock

<.001

4.33

134.68

Grab,

46' into drift

0.001

23.55

732.49

Grab,

52'

into drift

0.002

61.12

1,901.04

Grab,

61'

into drift

0.002

35.56

1,106.04

Grab

68'

into drift

<.001

5.72

177.91

Chip 76'- 18" across vein

0.003

49.58

1,542.11

Chip 80' - 18" across vein

0.001

2.70

83.98

Chip 85' - 24" across vein

0.004

83.50

2,597.13

Select - Big Dog Zone

0.005

111.85

3,478.92

Grab/select samples are selected samples and are not representative of the mineralization hosted on the property.

Dr. Bill Willoughby, the Company's mining engineer, supervised the underground development,

including

530 feet of new

workings into

unexplored areas of the Mine, that intersected new mineralized zones. A stockpile of 1,300 tonnes of

mineralized

oxide and sulphide development material, both of which the Ore-Sorter readily sorts, was derived from both the upper level

workings and the two new mineralized zones in the intermediate level.

The Company advises it is not basing any decision to produce on a feasibility study of mineral reserves demonstrating

economic and technical viability and also advises there is increased uncertainty and specific economic and technical risks of

failure associated with any production decision.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility

for its contents. Dr. Clay Conway, P.Geol., a Qualified Person and Director of Bayhorse has prepared, supervised the

preparation of, or approved the technical content of this press release.

On Behalf of the Board.

Graeme O'Neill, CEO

604-684-3394

Bayhorse Silver Inc. has earned an 80% interest in the historic Bayhorse Silver Mine, Oregon, USA, through

current underground

development , and construction of concentrating facilities.

Bayhorse is also earning a 75% interest in the Bridging the Gap Project, consisting of

past producing

historic Crown Point,

Silver King, Ranger, Wyoming, Curlew, and Blackhawk silver/lead/zinc mines of ASARCO

in Idaho's Silver Valley.

The Company has an experienced management and technical team with extensive exploration and mining expertise.

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.