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Bayhorse Silver – Favorable Ore-Sorting Results On Steinert US Equipment

Metallurgy & Processing

January 30, 2017 BHS2017-02

Bayhorse Silver – Favorable Ore-Sorting Results On Steinert US Equipment

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “ Bayhorse“) has received favorable initial test results from

testing run-of-mine silver mineralization from the Bayhorse Mine, Oregon, USA., submitted to Steinert US, manufacturer

of state-of–the-art Ore-Sorting equipment.

The Steinert X-Ray Transmission Ore-So rter (XSS) effectively identified and di scriminated between mineralized and

non-mineralized silver bearing material, as well as differentiating higher (above 93 g/t or 3oz/t Ag) from lower (below

93 g/t or 3oz/t Ag) grade mineralization. The XSS rejected 37% from the stream as non mineralized and retained 63% of

the run-of-mine stream. The material was sized between 1 inch (25mm) and 4 inches (100mm), and was comprised of

high grade, low grade, and non-mineralized material.

Steinert X-Ray Transmission Ore-Sorter

The Company will be shipping a larger, approximately 2 ton, sample of the Bayhorse mineralized material to Steinert US,

to establish the crush size for the most effective sorting, and rejection of unmineralized and lower grade (under 93 g/t or 3

oz/t Ag) material. The XSS is designed to sort material at up to 60 tons per hour from material sized at 10 mm (0.35

inch) to 200 mm (8 inches). By narrowing the size range for Ore-Sorting to between 12.5 mm (0.5 inch) to 32.5 mm (1.25

inch) and lowering the hourly throughput, the XSS can achi eve better discrimination between low grade and the higher

grades, and more effectively upgrade the mineralization.

Bayhorse CEO, Graeme O'Neill comments, "By using the XSS we could increase the proposed daily tonnage throughput

from 100 tons/day to 150 tons/day with no other changes to the cu rrent in-place crushing-upgrading circuit. As the XSS

uses no water and has a low power consumption requirement, we believe its use could have a substantial effect in

reducing processing costs and increasing recoverable mineralization."

He also notes that Adam Hamilton, of Zeal Research, has an article posted on 321Gold.com discussing silver's potential

upside in 2017. http://www.321gold.com/editorials/hamilton/hamilton012717.html

****************************************************************************************

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

responsibility for its contents On Behalf of the Board. Dr. Clay Conway, P.Geol., a Qualified Person and Director of the

Company has prepared, supervised the preparation of, or approved the technical content of this press release.

Graeme O'Neill, President

Bayhorse Silver Inc., a junior exploration company, is earning an 80% interest in the historic Bayhorse Silver Mine,

Oregon, USA. Bayhorse is also earning a 75% interest in the past producing Bridging the Gap Project, consisting of

ASARCO’s historic Crown Point, Silver King, Ranger, Wyoming, Curlew, and Blackhawk silver/lead/zinc mines 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.