Bayhorse Silver Inc. reported that it submitted its Full Operating Permit Application for the Bayhorse Silver Mine to the Oregon Department of Geological and Mining Industries in mid-January 2023. The permit application was delayed in 2022 due to the substantial time taken to complete a required survey of the Bayhorse Mine Property. The survey delay was due in part by the inability to locate property boundary markers that were lost during the establishment of the Brownlee Hydro-Electric Reservoir on the Snake River, and the subsequent acquisition by Idaho Power of a portion of the Bayhorse property that the reservoir would cover.

The Full Operating Permit is required for the Company to increase mining extraction above the 5,000 cu/yds permitted per year under the exemptions. The Company has received its first formal response from DOGAMI, that includes, among other things, a notice that based upon their GIS interpretation, the Company has exceeded its 1 acre surface disturbance. The Company was allowed to operate under the 1 acre surface disturbance and 5,000 cu/yds exemption without an operating permit.

Due to exceeding the permitted 1 acre surface disturbance, DOGAMI has formally advised that the Company is restricted from conducting mining operations at the Bayhorse Mine until a Full Operating Permit is issued by DOGAMI. A Full Operating Permit will allow the Company to mine above the 5,000 cu/yds per year it has been restricted to. The Company is currently working with DOGAMI to address all concerns.