Bayhorse Silver Enters Option Agreement for 75% Interest in the Government Gulch Silver/Lead/Zinc Patented Claim Groups, Coeur d'Alene Mining District, Idaho, USA - Seite 2

The Silver Valley silver/lead/zinc deposits are known to extend to over 10,000 feet in depth. Hecla's Lucky Friday Mine is currently extending operations to that depth.

Blackhawk has digitized all the Government Gulch underground workings as well as the Page, Bunker Hill and Caledonia Mines from the extensive data and records on file and has identified significant un-mined mineralized zones within the Government Gulch mines.

ASARCO deeded the Government Gulch claims to the U.S. Environmental Protection Agency ("EPA") as part of its settlement with the EPA for the Silver Valley Superfund Cleanup. Blackhawk recently purchased the Government Gulch property from the EPA-established Trust, free and clear of any and all environmental liabilities from the EPA, pursuant to the completion of the Super Fund Cleanup executed by the EPA in the Silver Valley.

The Company is also pleased to announce that Mr. Ron Kruzemark, P.Eng., a mining engineer with substantial underground experience from working in many of the Silver Valley's mines, including Hecla's "Lucky Friday Mine", and who digitized the entire package of Government Gulch underground workings, will join Dr. Clay Conway, P.Geol, Dr. Stewart Jackson, P.Geol, and Dr. Richard Jolk, P.Eng., all qualified persons as defined by NI-43-101, as a consultant to the Company. Dr. G.E. Ray, P.Geol, prepares NI-43-101 Technical Reports for the company.

To earn its 75% interest in and to the Properties, Bayhorse is required to spend US$600,000 per year over five years (inclusive of reimbursing Blackhawk for the US$500,000 acquisition cost of the property), of which US$1,200,000 is a firm commitment.

Bayhorse Silver Inc. is a junior exploration company that is earning an 80% interest in the historic Bayhorse Silver Mine in Oregon, USA that has the potential for a substantial silver 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 technical content of this press release has been reviewed by Dr. S. A. Jackson, PGeo., a Qualified Person and Technical Advisor to 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.

Bayhorse Silver Inc.
Graeme O'Neill
President
604 684 3394
888 684 0586 (FAX)
[e-mail]
www.bayhorsesilver.com