Mr. Graeme O'Neill reports

BAYHORSE SILVER CLOSES FINAL 1 MILLION UNIT TRANCHE OF 2 MILLION UNIT NON-BROKERED PRIVATE PLACEMENT

Subject to TSX Venture Exchange approval, Bayhorse Silver Inc. has closed the final one-million-unit tranche of its previously announced two-million-unit non-brokered private placement, for gross proceeds of $60,000.

Each six-cent unit consists of one common share and one transferable common share purchase warrant. Each warrant is exercisable into one common share of the company at an exercise price of 10 cents, for a period of 24 months from the issuance date.

Funds raised will be used for the Bayhorse silver mine, and general and administration purposes.

In addition to any other exemption available to the company, participation in the financing is also open to existing shareholders who are not accredited investors under the existing shareholder exemption of National Instrument 45-106, as promulgated in Multilateral CSA Notice 45-313 in participating jurisdictions.

Graeme O'Neill, a director and officer of the company, has subscribed for one million units of the placement and has sold 863,000 shares of the company through the facilities of the TSX Venture Exchange. Upon completion of the placement, he will hold 3,687,600 shares, representing 13.21 per cent of the company's issued and outstanding shares. The units were priced in accordance with the policies of the TSX Venture Exchange. The acquisition of units under the private placement was exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101, pursuant to sections 5.5(a) and 5.7(a) of that instrument.

All securities issued under the private placement are subject to a four-month-and-one-day hold period.

The company has recently closed a $250,000 (U.S.) first tranche of a $750,000 (U.S.), 12-per-cent, three-year, convertible, silver-convertible, 2-per-cent net revenue participation debenture.