Mr. Graeme O'Neill reports

BAYHORSE SILVER CEO INCREASES SHAREHOLDING TO 19% OF OUTSTANDING SHARES OF BAYHORSE

HighCard Exploration, a company controlled by Bayhorse Silver Inc. chief executive officer Graeme O'Neill, and Graeme O'Neill, have converted $250,000 in debt owed to them by the company into 2,232,143 common shares of Bayhorse at a 20-per-cent discount to the June 30, 2016, closing price, as permitted by TSX Venture Exchange policy. Mr. O'Neill now owns or controls 6,017,117 common shares of Bayhorse, or 19 per cent of the company's issued and outstanding shares.

Due to the market uncertainty from the recent Brexit referendum results, the company is extending the closing of its previously announced U.S.-dollar-convertible, silver-convertible, net revenue participation debenture placement for a further 30 days. The new closing date is Aug. 4, 2016. The company has granted 225,000 incentive stock options to officers, directors and consultants to the company exercisable for five years at a price of 12 cents per common share.