Bayhorse Silver Update on Oregon Silver Mine, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 13, 2014) - Bayhorse Silver Inc. ("Bayhorse" or the "Company") (TSX VENTURE:BHS) wishes to report on its continuing work program at the Bayhorse silver mine, Oregon, USA.

Dense media separation ("DMS") testing was conducted on the low grade stockpile left on the site from the 1984 mining program (average grade 164 g/t Ag or 5.28 oz/t Ag). Results from mining at that time reported that 23% of the material mined graded between 20 - 100 oz ton, 71% graded between 6 - 20 oz ton and 6% of the mined material graded less than 6 oz/t Ag. The low grade material grading below the "cut off" in any mining operation would be left unprocessed and either stockpiled or sent to the waste pile. The dense media separation program demonstrated that the stockpiled material could be successfully upgraded. Recovery of 51% of the silver was accomplished from 11.7% of the initial mass, for an upgrade of approximately 8.8 times. The upgraded material has an approximate grade of 982 g/t (31.6 oz/t) Ag.

Success demonstrated in this endeavour indicates that it is possible to produce both a greater volume of direct shipping material and a higher grade for milling grade material, reducing shipping costs.

The Company has received a proposal to purchase for processing the mineralized material from the bonanza grade zone. The Company plans to extract up to a 5,000 cubic yard bulk sample (approximately 15,000 tons) from the high grade silver zone. Based upon the average 1984 historic mining grades of 572 g/t Ag (16.7 oz/t Ag), the bulk sample has the potential to contain as much as 250,000 oz/Ag.

Bayhorse Silver Inc. is a junior exploration company that is earning an 80% interest in its newly acquired historic Bayhorse Silver Mine, Oregon, USA that has the potential for a substantial silver discovery. It has a 100% interest in its three major high grade New Zealand gold prospects (Alexander River, Paparoa and Red Queen), in the highly prolific West Coast South Island gold fields of New Zealand, where it offers investors the potential for a major gold discovery. The Company has an experienced management and technical team with extensive exploration expertise.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release has been reviewed and approved by Dr. Clay Conway, P.Geol., and qualified person as recognized by National Instrument NI-43-101 and a director of the Company.

ON BEHALF OF THE BOARD

Graeme O'Neill, President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements - All statements herein, other than statements of historical fact, including, without limitation, plans for and intentions with respect to the Company's capitalization, preparation of technical reports, proposed work programs, budgets and proposed expenditures, permitting, construction and production timing are forward-looking statements. While the Company believes such statements are reasonable, no assurance can be given that any expectations will prove to be correct and the forward-looking statements are not guarantees of future results or performance and that actual results may differ materially from those in the forward-looking statements. Readers should not place undue reliance upon forward-looking statements and the Company undertakes no obligation to re-issue or update any forward-looking statements as a result of new information or events after the date hereof or as may be required by law. All forward-looking statements and information herein are qualified by this cautionary statement.

The Company advises that the Corporate update also contains information that 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. (ounces/grams conversion is one ounce/short ton = 34.2857 grams/metric ton).