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BHS.V ·

Bayhorse Silver Reports ON Recent Developments

Corporate Updates

October 7, 2021 BHS2021-16

BAYHORSE SILVER REPORTS ON RECENT DEVELOPMENTS

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

or “Bayhorse”) has received the building permit to ins tall its full flotation processing facility in

Payette, Idaho. The facility is 40 miles on mostly Interstate 84, from the Bayhorse Silver Mine in

Oregon, USA.

The full flotation facility, where building erection is now 75% completed, is capable of handling

75 tons of pre-processed, ore-sorted, mineralization from the Bayhorse Mine per day.

The Company anticipates that it will have the equipment relocated to the new facility and back

in operation by mid November.

The Company has fully completed lease and buyout payments on its US$1 million Steinert Ore-

Sorter, that is capable of a 40 ton per hour throughput and now holds full title to the

equipment.

During this past six months of nearly continuo us operation, the Company is pleased to report

that the grade of the rejected material from the Ore -Sorter has consistently been less than ½

ounce (15 grams) per ton of silver , demonstrating that it is achieving maximum recovery with

minimal loss

Operations at the Bayhorse Mine currently consists of drifting into and making safe the high

grade Big Dog zone, where additional drilling of the Big Dog structure is under way ,. This is to

determine the dip, strike, and plunge and width of the zone, to permit extraction of mineralized

material from this high grade zone.

Recent sampling of the smaller veins criss -crossing this zone has identified these veins are

coated with limonite. These very high grade veins are very brittle and fracture and liber ate

readily into small pieces on blasting .

Figure 1 High grade vein, Big Dog stope

the Company has made some changes to the initial crushing circuit to screen off all ½ inch

material, that will bypass the Ore-Sorter and go straight to the flotation mill.

Figure 2 XRF reading of 2328.2 silver

A number of mineralized samples from these newly accessible veins were measured with XRF

by the Company’s geologists (Apex Geoscience) one of which measured 2328.2 g/t (74.85 opt)

silver, as well as 17.16% copper, 2.04% cobalt and 26.74% zinc, and 4.99% antimony. Ano ther

sample graded 1,350 g/t (The two samples were submitted to Christopherson Umpire Assayers

of Kellogg, Idaho for silver assay, (fa/grav) and returned 7 5.82 opt (2,358.2 g/t) and 40.4 opt

(1,256.5 g/t) respectively.

XRF devices are used by the Company inside the mine and on drill core to identify and initially

assess the mineralized areas. The Company cautions that while the XRF device is calibrated, and the

assay samples generally agreed with the XRF readings, the sa mples are not representative of actual

mining grades as they only measure a 1cm portion of the actual sample.

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

demonstrating economic and technical viability and advises there is an increased uncertainty and

specific economic and technical risk of failure with any production decision. These risks include, but

are not limited to, (i) a drop in price of commodities produced, namely silver, copper, lead and zinc,

from the pricing used to make a production decision; (ii) failure of grades of the produced material to

fall within the parameters used to make the production decision; (iii) an increase in mining costs due

to changes within the mine during development and mining procedures; and (iv) metallurgical

recovery changes that cannot be anticipated at the time of production.

The TSX Venture Exchange, has approved a $166,685.42 settlement for debt amount of

convertible debenture accrued interest through the issuance of 1, 515,322 common shares of

the Company at a price of $0. 11 per share. In accordance with the TSX Venture Exchange rules,

the shares issued are subject to a hold period of four month s plus a day from the date of

issuance.

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

which accepts full responsibility for its contents. Dr. Stewart Jackson, P.Geo., a Qualified Person and

Consultant to the Company has prepared, supervised the pre paration of, and approved the technical content of

this press release.

On Behalf of the Board.

Graeme O'Neill, CEO

604-684-3394

About Bayhorse Silver Inc.

Bayhorse Silver Inc. is an exploration and production company with a 100% interest in the histori c

Bayhorse Silver Mine located in Oregon, USA. With state of the art Steinert Ore -Sorting technology

reducing waste rock entering the processing stream by up to 85%, we have created a minimum

environmental impact facility capable of mining 200 tons of mineralization per day and the ability to

process and supply 3,600 tons per year of silver/copper concentrate ranging between 7,500 to 15,000

g/t using standard flotation processing at its milling facility in nearby Payette County, Idaho, USA,

with an offtake agreement in place with Ocean Partners UK Limited. The Company also has an

option to acquire an 80% interest in the Brandywine high grade silver/gold property located in B.C.

Canada. 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.