BAYHORSE ORE-SORTER OPERATIONAL AT BAYHORSE SILVER MINE, OREGON, USA.

BHS2017-25

To Our Shareholders & Investors

Many of you have waited eagerly for this announcement, and we thank you for your patience as we commence a new phase in the development of the Bayhorse Silver Mine.

Graeme O'Neill, CEO. Bayhorse Silver Inc.

Bayhorse Silver Inc. (�Bayhorse� or the "Company") (TSX-V: BHS) is pleased to report that on November 30, 2017, Steinert US commissioning personnel handed over the KSS100 X-Ray Transmissive "Ore-Sorter" to Bayhorse CEO, Graeme O'Neill, in a fully operational state at the Bayhorse Silver Mine, Oregon, USA.

Before handing over the Ore-Sorter to Bayhorse, Steinert US personnel conducted their standard "on-site" comprehensive pre-commissioning tests. The final step was installing the three ore-sorting algorithms that were developed from Bayhorse mineralized material shipped to the Steinert US test facility at Walton, Kentucky, USA in May of this year. (See NR BHS2017-14)

Bayhorse Ore-Sorter and Steinert US technical commissioning personnel with Bayhorse CEO Graeme O'Neill and Mine operating personnel.

Bayhorse CEO Graeme O'Neill comments "Commissioning the KSS 100 Ore-Sorter, with state- of- the -art sensing and sorting technology, concludes a major milestone by installing cutting-edge technology to separate mineralized from non-mineralized material at the Bayhorse Silver Mine." "The Ore-Sorter is completely automatic, with sorting operations and performance monitored remotely by both Steinert and the Company. Steinert can change the operational characteristics and sorting algorithms of the Ore-Sorter at their US operations center, without ever needing to do a site visit."

Levi Duncan, Bayhorse Operations Manager, along with two highly experienced mining teams from Idaho's Silver Valley, led by Bayhorse Mine Supervisors, Josh Haynes and Jon Farrell, played a significant role in achieving this momentous occasion.

Upgrading the 1,300 tonnes of stockpiled silver mineralized oxide and sulphide material, from underground development conducted concurrent with the Ore-Sorter installation, will continue through to January, 2018. The Bayhorse Silver Mine operates on a 7 day a week schedule.

The first mineralized material to be processed through the Ore-Sorter is from the Sunshine Zone in the upper level, where grab samples from blasted mined rounds assayed as shown in the following table: (previously disclosed in the Company's news release BHS2017-17).

Grab/select samples are selected samples and are not representative of the mineralization hosted on the property.

Dr. Bill Willoughby, the Company's mining engineer, supervised the underground development, including 530 feet of new workings into unexplored areas of the Mine, that intersected new mineralized zones. A stockpile of 1,300 tonnes of mineralized oxide and sulphide development material, both of which the Ore-Sorter readily sorts, was derived from both the upper level workings and the two new mineralized zones in the intermediate level.

The Company advises it is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and also advises there is increased uncertainty and specific economic and technical risks of failure associated with any production decision.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr.. Clay Conway, P.Geol., a Qualified Person and Director of Bayhorse has prepared, supervised the preparation of, or approved the technical content of this press release.

On Behalf of the Board.

Graeme O'Neill, CEO

604-684-3394