Mr. Graeme O'Neill reports

BAYHORSE SILVER EXPANDS THE KNOWN SILVER MINERALIZED RHYOLITE ZONE AND HAS CONDUCTED A MULTI SPECTRUM SATELLITE ANALYSIS OF ITS BAYHORSE AND PEGASUS PROPERTIES

Four of Bayhorse Silver Inc.'s recent underground diamond drill holes have intersected highly silicified hydrothermal breccia, which, along with diamond drill hole DDH2024-01, has extended the known breccia zone to 160 metres (528 feet) north to south and 180 m (594 ft) east to west and from 75 m (247 ft) to 318 m (1,050 ft) below the known mine workings. Assays from these holes are pending and the company expects to report the results shortly.

The continuing drilling program directed toward expanding the Bayhorse mineralized zone has confirmed Dr. Clay Conway's structural and geological mapping of the Bayhorse silver mine, where the top of the silver-bearing rhyolite dike has been cut and offset by east-directed thrusting, and the overlying segment has been displaced to the south. This displaced historically mined section, with an estimated vertical extent of 40 m (130 ft), and a minimum east-west extent of 227 m (750 ft) and average thickness of between 45 m and 60 m (between 150 and 200 ft), is the area where the company plans to mine based on the National Instrument 43-101 inferred resource of 292,300 tons containing 6.3 million ounces of silver at a grade of 21.65 ounces per ton (opt) (742.5 grams per tonne (gpt)) (Turner et al., 2018).

While the strike of the northern rhyolite zone is anticipated to be more than 227 m (750 ft) to the west, the full extent of the depth, width, and the extent and grade of mineralization will not be known until approval is received for the company's surface drilling permit, which was applied for on Feb. 20, 2026, and its surface drilling program is completed.

The company has been advised by the Oregon Department of Geological and Mining Industries (DOGAMI) that although it received the surface drill permit application on Feb. 20, 2026, due to the large number of other permit applications received and due to limited staffing, there was a mandatory 90-day period, later amended to 180 days, before processing the application would commence. During this period, certain permit applications were being prioritized for processing by the Oregon Office of the Governor and the Oregon Legislature. As such, DOGAMI could give no certainty as to when the final review and approval of the company's drill permit application would be completed. The approaching winter conditions may delay the completion of the company's current surface drill program.

Bayhorse chief executive officer Graeme O'Neill comments: "While the DOGAMI permitting delay has been frustrating, we are pleased that Dr. Clay Conway, PGeol's, comprehensive geological and structural mapping of the Bayhorse silver mine that postulated the extension of the rhyolite hosted mineralization to the north of the historic mined zones was confirmed by the groundwater test well MW-2 drilled in 2024. This hole intersected a reported 1.5 m (five ft) grading 1,104 gpt (35.46 opt) silver and 1.5 m (five ft) 770 gpt (23.12 opt) silver mineralization within a mineralized nine m (30 ft) zone estimated between 21 and 30 m (70 and 100 ft) downhole as reported in the company's news release BHS2025-12. The mineralization also included the critical minerals copper and antimony."

There is significant faulting and fault gouge above the northern rhyolite section resulting from the displacement of the upper mineralized section to the south. During the underground drilling, it was only possible to drill low-angle holes (minus 30 to minus 45 degrees). This prevented any drilling of the northern underlying segment of mineralization, which is estimated to be 60 to 70 m (198 to 230 ft) north of, and 20 to 30 m (66 to 100 ft) below, the bottom of the south displaced section at the 706 m (2,330 ft) asl. As a result, the company plans to drill these targets from surface drill sites.

As mineralization often lies peripheral to the hydrothermal breccia zones, the company engaged ProSat to conduct a multispectrum satellite analysis to cover the area. In January, 2024, a VTEM survey (BHS2024-06) identified a possible buried pluton lying two to three kilometres (km) north of the Bayhorse mine, which extends south to the mine area and its adjacent Pegasus property. Further exploration will take place to identify other drill targets, both over and around this possible pluton, and in the mine vicinity.

The ProSat satellite analysis looked at six independent layers consisting of structure, iron oxide, clay minerals, thermal anomaly, gravity and radiometrics as described on its website. Each layer captures a distinct physical phenomenon. Fused together via machine learning, they reveal what no single sensor can see alone.

When overlain on the 2024 VTEM survey, the satellite analysis correlates directly and compares favourably with the 2025 IP survey. The signatures identify strong potential mineralized structures around the existing Bayhorse mine workings extending from within the claim boundaries up to 365 m (1,205 ft) north of the Bayhorse patented claims. This extends across the known Bayhorse rhyolite trend and onto the Pegasus claims, where the VTEM analysis and Dr. Conway's geological sampling and mapping have identified silver/copper/antimony-bearing rhyolite and anomalous gold showings in the northern parts of the Pegasus project (BHS2024-18).

As reported in the company's December, 2024, news release (BHS2024-29) and in January, 2025, it is thought that the epithermal silver mineralization and hydrothermal brecciation seen in the Bayhorse drilling could be related to a nearby or underlying pluton.

The company and its engineering consultant continue to engage with DOGAMI for the approval of its surface drill permit, however, there can be no assurance that the company will receive those permits on a timely basis.

The surface drilling permit delay will not affect the completion of the current groundwater and geochem baseline studies for the company's full mining operating permit application. The final groundwater test is under way and the baseline study report is anticipated to be completed before year-end.

The company continues to work with its independent technical consultant, Haley & Aldritch Inc. (H&A), to co-ordinate the significant amount of technical work required for the Bayhorse mine operating permit application.

This news release has been prepared on behalf of the Bayhorse Silver board of directors, which accepts full responsibility for its content. Mark Abrams, AIPG, a qualified person and a director of the company, has prepared, supervised the preparation of, or approved the technical content of, this news release.

About Bayhorse Silver Inc.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine, located in Oregon, with a National Instrument 43-101 inferred resource of 292,300 tons at a grade of 21.65 opt (673 gpt) for 6.3 million ounces of silver (Turner et al., 2018), and the Pegasus project, in Washington county, Idaho. The Bayhorse silver mine and the Pegasus porphyry copper project are 44 km southwest of Hercules Metals' porphyry copper discovery. The Bayhorse mine is a minimum environmental impact facility capable of processing at a mining rate of up to 200 tons per day, including a state-of-the-art 40-ton-per-hour Steinert ore-sorter that reduces waste rock entering the processing stream by up to 85 per cent. The company has established an up-to-60-ton-per-day mill and standard flotation processing facility in nearby Payette county, Idaho, with an offtake agreement in place with Ocean Partners U.K. Ltd. The company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.

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