Bayhorse Silver Provides Update

Executive Summary

• Bayhorse Silver Inc. is evaluating strategic alternatives—including management succession and joint‑venture partnerships—as it prepares to transition to underground mining operations (targeted mid‑2026 permitting).
• The company highlights significant infrastructure already in place: 700 ft of new haulageway, 500 ft of drifts accessing historic unmined zones, a US$1 M Steinert XRT100 ore‑sorter (40 t/h capacity) and a permitted 50 t/d flotation mill in Payette, Idaho.
• Indications of interest have been received from qualified individuals and potential JV partners; the Board is actively considering options to maximize shareholder value.

Key Details

• Strategic Review: Board is reviewing “management succession and/or joint‑venture” structures to support a transition to mining operations once the operating permit is obtained (projected mid 2026).
• Infrastructure Built:
• 700 ft of new bolted & screened haulageway.
• 500 ft of drifts/raises accessing historic unmined zones from 1984 Silver King Mines.
• Fully paid‑for Steinert XRT100 ore‑sorter (US$1,000,000) capable of 40 t/h; reduces mined tonnage by >75% and raises feed grade.
• Wholly owned 0.9 acre flotation mill site with a permitted 50 t/d capacity in Payette, Idaho, producing silver‑copper‑antimony‑zinc concentrate.
• Potential JV/Partner Interest: Company has received “indications of interest” from several well‑qualified individuals and potential joint‑venture partners; evaluation is ongoing to maximize shareholder value.
• Critical Mineral Context: U.S. Department of the Interior (USGS) recently added silver to its list of critical minerals, supporting a favorable market outlook. Current spot price cited at US$39/oz.
• Pegasus Project Proximity: Pegasus project located ~3,000 ft across the Snake River in Idaho; potential for additional silver‑copper resources.
• Processing Alternatives: Reference to Sterling Mining’s upgraded mill in Idaho that could process Bayhorse concentrate domestically (instead of offshore), potentially capturing antimony credits (~12% of concentrate).
• Forward‑Looking Statements & Cautionary Note: Emphasizes lack of a definitive feasibility study, acknowledges commodity price risk, grade uncertainty, cost overruns, and metallurgical recovery variability.

Notable Quotes

“We have established Bayhorse Silver with real assets… ready to commence mining operations once the operating permit is complete (projected mid 2026).” – Graeme O’Neill, CEO
“There is every reason to be optimistic about our future prospects… we owe it to Bayhorse’s loyal shareholders to ensure a first‑rate management and technical team is in place.” – Graeme O’Neill, CEO

Materiality Assessment: Non‑Material – Positive (forward‑looking strategic discussion without definitive transaction or financial impact).