Bayhorse Silver Inc (BHSIF)

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To Our Shareholders & Investors

We have finally completed this work and are now in the process of undertaking confirmation work in the intermediate level workings preparatory to extracting the blocked out area for mining that remained un-mined due the closure of the mine in late 1984 due to low silver prices.

Over the past number of months we have been working diligently to complete the adit safety work to access the mining area at our Bayhorse Silver Mine. This consisted of installing mine timbers as well as doing other ground stabilization work along a section of the adit accessing the workings.


Bayhorse Silver Initiates Underground Sampling Program From Historic Silver Zone.

Bayhorse Silver Inc (BHS: TSX-V) has completed the major necessary engineering and safety work in rehabilitating the adit to the intermediate level mine workings at the Bayhorse Silver Mine, Huntington, Oregon, USA. Silver price increases to over US17 oz, has triggered numerous analysts to predict more significant increases ahead. The Company is well positioned to take advantage of further silver price increases.

The Company is now able to commence verification of the silver grades that Silver King reported from its 1984 underground drill program and mining production. Additionally, the Company will confirm the historical mineralized zone averaging 85 feet in width, 22 feet in thickness, with a known length of 840 feet (Herdrick,1981). The Company will also accurately survey the location where Silver King blocked out two zones ready to mine totaling approximately 1,800 tons. These zones remained un-mined when the mine ceased production due to low silver prices and the Company is preparing for its first extraction from these zones : http://www.bayhorsesilver.com/bayhorse-silver-mine/historic-information/

Assisting the Company in its work is a team of independent geological and engineering consultants, including Mining Engineer Ron Krusemark of HRB Mining Services (HRB), Dr. Clay Conway, P.Geol, Dr. Stewart A. Jackson, P.Geol., Dr. G. E. Ray, P.Geol, Dr. Richard Jolk, P.Eng. Metallurgy, M. Dufresne M.Sc. P.Geol of Apex Geoscience. Assays and metallurgical work will performed by Metsolve Metallurgical Labs. HRB has a highly experienced mining team at the Bayhorse Silver Mine, where underground work has been in progress since mid March.

Silver King drilled 90 underground drill holes in 1984 totaling 15,000 feet and using a 6 oz/ton Ag cut off grade, mined 5,718 tons averaging 16.7 oz/t Ag (572.5 g/t Ag). Historic records indicate that of the 5,718 tons produced, 23% graded between 21 - 100 oz/t Ag, 71% graded between 6- 20 oz/t Ag, and 6% graded less than 6 oz/t Ag. Copper averaged 1% Cu. The highest reported grade from the 1984 drilling, sampling and mining program was from a mined round, containing a tetrahedrite-tennantite-rich vein, that assayed 691 oz/t Ag (23,691 g/t) and 15.72% Cu.

Minerals Production Yearbook (Jacobsen, 1959), reported total historic production from the Bayhorse Mine through 1959 as 286,000 ounces of silver from 8,300 tons of ore for an average of approximately 34.5 oz/t Ag (1,183 g/t Ag). Herdrick (1981) estimated remaining shipping ore to be 166,208 tons at an average grade of between 17 and 20 oz/t, at a 7.5 oz/t Ag cutoff, of which Silver King, mined 5,718 tons at an average grade of 16.7 oz/t silver using a 6 oz/ton Ag cut-off. No mining has been conducted at the Bayhorse Silver Mine since Silver King ceased its its 1984 mining program.

The Company advises that this information is of a historic nature. Historic production estimates, drill information and grades reported have not been verified; A qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves.

Thanks for your continuing support

Bayhorse Silver