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BHS.V ·

Bayhorse Silver Provides Update

Corporate Updates

August 26, 2025. BHS25-18

Bayhorse Silver Provides Update

Bayhorse Silver Inc, (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the

“Company” or “Bayhorse”) reports that, as the Company is getting closer to permitting its

Bayhorse Silver Mine, Bayhorse CEO, Graeme O’Neill, advises the Board is actively

considering strategic alternatives in preparation for a transition to mining operations which

could include any combination of management succession and/or joint ventures.

The Company has received indications of interest from several well-qualified individuals and

potential JV partners. The Company is evaluating strategic alternatives from the perspective

of maximizing shareholder value and realizing the best possible return on our significant

asset base and property portfolio.

CEO Graeme O’Neill comments, “we have established Bayhorse Silver with real assets,

including 700 feet of new bolted and screened haulageway, and 500 feet of drifts and raises

accessing historic unmined areas identified from 1984 operations (Silver King Mines 1984)

including new drifts into new exposed mineralized zones. (BHS2024-11) ( BHS2022-08 )

for a fully rehabilitated developed underground silver mine ready to commence mining

operations once the Operating permit is complete (projected mid 2026). We have a fully

paid for (US$1,000,000) Steinert XRT100 Ore-Sorter in place, capable of up to 40 ton/hour

processing capacity, that has been proven to reduce the proposed mined tonnage by better

than 75%, creating a higher grade pre-concentrate to reduce processing costs. We then

ship that to our wholly owned 0.9 acre flotation mill site with a permitted, 50 ton per day

flotation mill, situated in nearby Payette, Idaho, where a flotation concentrate consisting of

silver, copper, antimony, and zinc would be produced.”

O’Neill further comments, “the US Department of the Interior, via the USGS, has recently

added Silver as a “critical mineral” in its most recent critical minerals draft. With silver

recently reaching US$39 per ounce, (US$9.70 per ounce compared to the inflation adjusted

1980’s US$50 ounce), and a huge silver and copper prospect at our Pegasus project 3,000

feet away across the Snake River in Idaho, there is every reason to be optimistic about our

future prospects. There is a great deal of knowledge to be passed along and we owe it to

Bayhorse’s loyal shareholders to ensure that a first rate management and technical team is

in place to keep Bayhorse fully prepared for mining.operations ”

Recent news from Sterling Mining in Idaho’s silver valley indicates they are commencing

mining preparations again, and upon upgrading their mill, have reached an agreement to

process Perpetua Mining’s gold/antimony concentrate once Perpetua’s Idaho permitting is

complete. Sterling has announced they are also accepting other similar concentrates.

Currently, the Company would have to ship concentrate offshore for processing and only

get credits for silver and copper so sending it to Sterling’s upgraded mill, when complete,

and processing facility would allow credits for the Bayhorse antimony, that preliminary

process is estimated to constitute +/- 12% of the concentrate, as well as the silver and

copper.

Cautionary statement

The Company is not basing any decision to produce silver and other metals 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 with any

production decision. These risks include drop in price of commodities produced, namely

silver, copper, lead, and zinc, from the pricing used to make the production decision, failure

of the grades of the produced material to fall within the parameters used to make the

production decision, and increase in mining costs due to changes within the mine during

development and mining procedures. There are also metallurgical recovery changes that

cannot be anticipated at the time of production.

All statements herein, other than statements of historical fact, including, without limitation,

plans for and intentions with respect to the Company’s capitalization, preparation of

technical reports, proposed work programs, budgets and proposed expenditures, permitting,

construction and production timing are forward looking statements. While the Company

believes such statements are reasonable, no assurance can be given that any expectations

will prove to be correct and the forward-looking statements are not guarantees of future

results or performance and that actual results may differ materially from those in the

forward-looking statements. Readers should not place undue reliance upon forward-looking

statements and the Company undertakes no obligation to re-issue or update any forward-

looking statements as a result of new information or events after the date hereof or as may

be required by law. All forward-looking statements and information herein are qualified by

this cautionary statement

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.

On Behalf of the Board.

Graeme O'Neill, CEO

866-399-6539

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 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 up 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. The Company has an experienced

management and technical team with extensive mining expertise in both exploration and

building mines.

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.