Bayhorse Silver Expands The Known Silver Mineralized Rhyolite Zone And Has Conducted a Multi Spectrum Satellite Analysis Of Its Bayhorse and Pegasus Properties

Bayhorse Silver Inc. (BHS) reported that four recent underground diamond drill holes intersected "highly silicified hydrothermal breccia." When combined with DDH2024-01, the known breccia zone is now mapped at 160 m north-south and 180 m east-west, extending from 75 m to 318 m below known mine workings. Assays from these four holes are pending, with no grades, widths, or per-hole intervals reported.

The company confirmed structural mapping by Dr. Clay Conway, noting that east-directed thrusting cut the top of the silver-bearing rhyolite dyke and displaced the overlying segment a minimum of 60 m south. This displaced, historically mined rhyolite section is stated to have a vertical extent of approximately 40 m, a minimum east-west extent of 227 m, and an average thickness of 45-60 m. This target is tied to the NI 43-101 inferred resource of 292,300 tons at 21.65 opt (742.5 g/t) for 6.3 moz Ag, as quoted in the release (Turner et al. 2018).

BHS also reiterated results from the 2024 groundwater test well MW-2, which reported 1.5 m @ 1,104 g/t Ag and 1.5 m @ 770 g/t Ag within a mineralized 9 m zone, 21-30 m downhole. These results were first reported in BHS2025-12.

Regarding exploration permits, BHS applied for a DOGAMI surface drill permit on February 20, 2026. A mandatory 90-day review was later amended to 180 days, with no certainty on approval and winter conditions potentially delaying the surface program further.

A multi-spectrum satellite study by ProSat utilized six machine-learning fused layers to identify structures extending up to 365 m north of the patented claims onto the Pegasus Project. These findings were overlain against 2024 VTEM and 2025 IP data. The 2024 VTEM survey identified a possible buried pluton 2-3 km north of the mine.

Mark Abrams, AIPG, Director, is the Qualified Person.

Bayhorse Silver Inc. (BHS) released an update that expands an alteration and breccia envelope while restating mapping, but the company noted there is no grade or continuity associated with the new data. The contained ounce base, grade, metallurgy, and permit status remain unchanged from prior releases.

The company is a pre-revenue explorer and developer with a small inferred resource. As of June 30, 2026, it held C$2.59 million in cash against an operating cash burn of approximately C$2.1 million per six months, providing roughly seven to eight months of runway absent new financing. While a genuine discovery hole would be highly material at this stage, a breccia-footprint update with pending assays is not.

The stock traded at C$0.15 in late December 2025, round-tripped to C$0.04 by mid-2026, and is currently trading at C$0.06, near the low end of its range. The price does not appear to be embedding any prior result, effectively discounting the entire story. The release’s own text concedes that grade and extent "will not be known" until a surface permit is granted. The news represents incremental program administration and targeting, with a permit delay pushing the actual catalyst further out.

Bayhorse Silver Inc. (BHS) is a pre-revenue explorer and developer that holds 100% of the historic Bayhorse Silver Mine in Oregon, USA, and the Pegasus Project in Washington County, Idaho. The company’s assets are located 44 km southwest of Hercules Metals' porphyry copper discovery.

At the Bayhorse property, an NI 43-101 inferred resource of 292,300 tons @ 21.65 opt (673 g/t) for 6.3 moz Ag was reported by Turner et al. in 2018. This represents a small, high-grade, narrow resource based on a study that has not been updated. The mine holds a permitted-capability claim of up to 200 t/day, utilizing a 40 t/h Steinert ore-sorter and a 60 t/day flotation mill in Payette County, Idaho. Additionally, the company has secured an offtake agreement with Ocean Partners UK Ltd.

The Pegasus Project is a porphyry copper/gold prospect featuring VTEM, IP/AMT, and mapping targets. The site includes silver/copper/antimony-bearing rhyolite and anomalous gold showings in the north, though no resource has been defined.

Prior-period financial context indicates a FY-2025 net loss of C$5.39M and a H1-2026 net loss of C$1.96M. Cash holdings stood at C$2.59M at June 30, 2026, an increase from C$0.43M at FY-2025. This liquidity followed an April 2026 C$4.1M brokered "LIFE" offering priced at C$0.07/unit with C$0.10 warrants, alongside warrant exercises. Management has explicitly flagged a material uncertainty regarding going concern and reliance on external equity and debt. Shares outstanding rose from approximately 352.3M in December 2025 to approximately 417.7M in June 2026.

Management has outlined targets including up to 10 underground holes totaling 2,000 m in 2026, a Full Operating Permit in H1 2027, a production rate of approximately 1 moz/yr of payable silver post-permitting, and an inferred metallurgical recovery of approximately 90%. These figures represent targets rather than results.