Mr. Graeme O'Neill reports

BHS2023-07 BAYHORSE CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Bayhorse Silver Inc., subject to the approval of the TSX Venture Exchange, has closed a first tranche of four million units of its non-brokered private placement dated Aug. 22, 2023, for gross proceeds of $60,000.

Each unit consists of one common share, and one transferrable common share purchase warrant, each warrant exercisable into one common share of the company at a price of five cents per common share for a period of 15 months from issuance.

Bayhorse Silver chief executive officer Graeme O'Neill has subscribed for four million units of the private placement. He has financed his subscription partly through arranged sales and through the facility of the TSX Venture Exchange. This participation by Bayhorse's CEO constitutes a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the units acquired by the insider, nor the consideration for the units paid by such insider, exceed 25 per cent of the company's market capitalization.

The funds received are to complete the deficiencies on the company's full operating permit application for the Bayhorse silver mine, to complete the reclamation of the Flagstaff property, and for general and administrative expenses.

In addition to any other exemption available to the company, participation in the non-brokered financing is also open to all existing Canadian shareholders, even if not accredited investors, under the existing shareholder exemption of National Instrument 45-106 as promulgated in Multilateral CSA notice 45-313 in participating jurisdictions.

Finder fees may be payable on a portion of the financing not taken down by insiders according to the policies of the TSX-V.

Securities issued under this placement will be subject to a four-month-plus-a-day hold period from the date of issuance.

About Bayhorse Silver Inc.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine located in Oregon, United States. With state-of-the-art Steinert ore-sorting technology reducing waste rock entering the processing stream by up to 85 per cent, the company has created a minimum environmental impact facility capable of mining 200 tons of mineralization per day and the ability to process and supply 3,600 tons per year of silver/copper/antimony concentrate ranging between 7,500 and 15,000 grams per tonne using standard flotation processing at its milling facility in nearby Payette county, Idaho, U.S., with an offtake agreement in place with Ocean Partners U.K. Ltd. The company also has an option to acquire an 80-per-cent interest in the Brandywine high-grade silver/gold property located in British Columbia, Canada. The company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.