Mr. Graeme O'Neill reports

BAYHORSE CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Subject to the approval of the TSX Venture Exchange, Bayhorse Silver Inc. has closed a first tranche of 13,167,500 units of its non-brokered private placement dated Dec. 20, 2023, for gross proceeds of $658,375.

Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant will be exercisable into one common share of the company at a price of 10 cents for a period of 24 months from the date of issuance.

The funds received are: to conduct the planned initial underground drilling program at the Bayhorse mine; to conduct a deep-penetrating VTEM (versatile time-domain electromagnetic) survey over the entire Bayhorse property to determine whether a deep-seated anomaly is present; to complete the company's full operating permit application for the Bayhorse silver mine; 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 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.

Finders' fees may be payable on a portion of the financing not taken down by insiders, according to the policies of the TSX-V. Subject to the approval of the TSX-V, the company will pay cash finders' fees of $24,430 and issue 488,600 finders' warrants, with each warrant exercisable into one common share of the company at a price of 10 cents for a period of 24 months from the date of issuance. Any shares issued pursuant to the finders' warrants are subject to a hold period expiring on April 21, 2024.

Securities issued under this first tranche are subject to a hold period expiring on April 21, 2024.

Bayhorse Silver chief executive officer Graeme O'Neill has subscribed for 2.6 million units ($130,000) of the private placement. He has financed his subscription partly through arranged sales and through the facility of the TSX-V. Bayhorse Silver chief financial officer Rick Low has subscribed for 600,000 units ($30,000) of the private placement. This participation by Bayhorse's CEO and CFO 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, exceeded 25 per cent of the company's market capitalization.

Mr. O'Neill will be attending three Vancouver conferences in January: the Resource Investment Conference (Jan. 21 to Jan. 22, 2024), the Metals Investor Forum (Jan. 19 to Jan. 20, 2024) and the Cordilleran Roundup (Jan. 22 to Jan. 25, 2024).

About Bayhorse Silver Inc.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historical 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, Bayhorse Silver 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 silver, 10 per cent to 12 per cent copper, 10 per cent to 12 per cent antimony and 15 per cent to 18 per cent zinc, using standard flotation processing at its milling facility in nearby Payette county, Idaho, United States, 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.