SILVER SUMMIT CORPORATE PRESENTATION BHS: TSX-V Cautionary Note - PowerPoint PPT Presentation

SILVER SUMMIT CORPORATE PRESENTATION BHS: TSX-V

Cautionary Note The Company advises that the following presentation includes forward looking statements and contains information that is based upon a NI-43-101 Inferred Resource, and a Conceptual Exploration Target. The terms “probable tonnages”, “orebody”, “probable ore” and “ore” are measurement categories other than those required to be used for Canadian securities reporting purposes and do not satisfy the CIM definitions for mineral resources or mineral reserves. The terms “probable tonnages”, “ore”, “orebody” and/or “probable ore” etc. would constitute mineralized material under Canadian securities reporting requirements. The Company is not basing any decision to produce silver and other metals 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 with any production decision. These risks include drop in price of commodities produced, namely silver, copper, lead, and zinc, from the pricing used to make the production decision, failure of the grades of the produced material to fall within the parameters used to make the production decision, and increase in mining costs due to changes within the mine during development and mining procedures. There are also metallurgical recovery changes that cannot be anticipated at the time of production. 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 2 TSX.V: BHS

Overview Management holds 11% of the Company Bayhorse Silver Inc. Toronto Venture (Primary) BHS OTC Pink KXPLF Frankfurt 7KXN Share Price (10/11/19) $0.11 Shares Outstanding (basic) 98.2 million Market Cap (10/11/19) $11 million Shares Outstanding (Fully Diluted) 149.6 million Cash Balance (10/11/19) $0.10 million 45% 38% 3 TSX.V: BHS

Bayhorse Silver Mine – Ready For Production Highlights ➢ Mine produces .9999 fine silver from our concentrate under our agreement with Metals Solutions/Liberty Refiners, Coeur d Alene, ID ➢ Maiden Inferred Mineral Resource 6,328,400 oz silver ➢ Fully permitted under Oregon mine laws ➢ Mine placed in operation for USD$6.75 million ➢ Opened for $1.00 per inferred resource ounce ➢ Low environmental impact mine ➢ Revenue stream almost immediately ➢ Low operation costs (two years of mining cost data) ➢ Highly experienced management, consultants and operation teams 4 TSX.V: BHS

Bayhorse Silver Mine Easy To Get To Location and Infrastructure ➢ Easily access year round - located 14km north of Huntington, Oregon, off US Interstate I-84 on County road ➢ Electrical power at mine ➢ Close to skilled workforce ➢ Airport regular service 99 miles (160 km) on Interstate I-84 at Boise, ID ➢ Bayhorse Silver Mine infrastructure includes mine office, 1750 ft of underground workings and with the Steinert US$1M ore sorter, a complete 100 ton/day crushing and processing facility. ➢ Bayhorse Mine area is semi-desert with hot summers cool winters; work throughout the year 5 TSX.V: BHS

NI 43-101 Technical Report, 2018 Classification* Ag Cutoff Tonnage Ag Grade Ag Grade Contained Ag* Classification* Ag Cutoff Tonnage Ag Grade Ag Grade Contained Ag* (ounces per ton – opt)* (in short tons) (ounces (parts per million)* (troy ounces) (ounces per ton – opt)* (in short tons) (ounces (parts per million)* (troy ounces) per short ton – opt) per short ton – opt) 0 312,800 20.51 703.3 6,417,300 0 312,800 20.51 703.3 6,417,300 2.5 305,800 20.94 718.1 6,404,100 2.5 305,800 20.94 718.1 6,404,100 5 301,700 21.18 726.0 6,388,900 5 301,700 21.18 726.0 6,388,900 Inferred Inferred 7.5 292,300 21.65 742.4 6,328,400 7.5 292,300 21.65 742.4 6,328,400 10 275,500 22.43 769.0 6,178,100 10 275,500 22.43 769.0 6,178,100 12.5 253,700 23.39 801.9 5,934,000 12.5 253,700 23.39 801.9 5,934,000 *Silver Grades Shown Are Ounces Per Ton (31.1035 Grams Per Ounce) Resource 292,300 tons NI-43-101 Inferred Mineral Resource 21.65 opt Ag grade 6,328,400 oz of contained silver with a cut-off grade of 7.5 oz/t Mineralized silver zone hosted in rhyolite with dimensions approximately 800 ft (245 m) along strike east-west, 200 ft (60 m) across strike and 23 ft (7 m) in thickness Conceptual Exploration Target Modelled An additional conceptual exploration target of 200,000 to 250,000 tons at a range of grades of 10 to 20 opt Ag for a range of 2 million to 5 million ounces of silver. 6 TSX.V: BHS

Mining & Processing Ready To Go ➢ Anticipated full silver production at Bayhorse Silver Mine, subject to financing ➢ Current capacity 100 tons/day based upon 300 days/year ➢ Proposed increase to 200 tons/day ➢ Preprocessing reduces waste rock by 95% +, to create a highly concentrated end product ➢ 40 ton/hour Steinert XRT Ore-Sorter upgrades by 20 times sulphides in + 8mm to 25mm sized rock, selecting and upgrading as low as 1 oz/ton silver run of mine material ➢ On-site Milling/Processing all selected mineralized material to under 100 mesh for gravity/float concentration ➢ Waste rock rejection reduces concentrate volume of mineralized material by up to 95% at minimal processing cost 7 TSX.V: BHS

Silver Gold Comparisons ??? Over the past year, the silver to gold ration has reached an unprecedented 94 oz silver to 1 oz gold. Over the past 30 years, the ratio imbalance between silver and gold has only once spent this length of time above 90:1 and suggests a correction below 80:1 can happen anytime, and quickly, with a resulting rapid increase in silver prices. 8 TSX.V: BHS

Mining & Processing The High Grade Silver ➢ 200 ton/day mining processing capability Operational 7 day/week; mining high grade ➢ State of the art 40 ton/hour “Steinert XRT Ore - zone 1,000 feet inside the Mine ➢ Sorter” reduces waste rock Mining teams led by highly experienced hard entering processing stream rock miners from Idaho’s “Silver Valley” The Company advises it is not basing its 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 its production decision. 9 TSX.V: BHS

Significant Silver & Gold Expansion Potential Underground Exploration Program To Follow Westerly Strike, Southerly Dip of Mineralization Conceptual Exploration Targets To Be Drilled Underground (Apex 2018) ➢ 200,000 to 250,000 tons @ 10 – 20 oz/ton silver 2,000,000 oz/Ag to 5,000,000 oz/Ag Goldilocks Zone ➢ Mined silver up to 320 oz/t (2019) Up to 100oz/ton Ag ➢ gold occurrences to 10 g/t Au (Historic production reports) ➢ 1,000 – 2,000 feet strike extension target to West ➢ Possible extension to depth (500 – 1,000 ft) ➢ Extend width to + 200 ft Big Dog Zone Up to 350oz/ton Ag 10 TSX.V: BHS

Concentrate Upgrading Post Ore-Sorter 400 + Oz/T How do we make concentrate of 400 oz per ton of silver when there is only 21.5 oz per ton average to start with? 40 Ton/Hour Steinert Ore-Sorter Tertiary crusher/ball mill/regrind circuit Concentrate Gravity concentrator, flotation concentrator 11 TSX.V: BHS