Mr. Graeme O'Neill reports

BAYHORSE CLOSES OVERSUBSCRIBED PRIVATE PLACEMENT

Bayhorse Silver Inc., subject to the approval of the TSX Venture Exchange, closed its oversubscribed non-brokered private placement of 21,477,500 units on Jan. 18, 2024, for gross proceeds of $1,073,875.

Each unit will consist of one common share, and one transferrable common share purchase warrant. Each warrant will be exercisable into one common share of the company at a price of 10 cents per common share 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.

Subject to the approval of the TSX Venture Exchange, the company will pay cash finder's fees of $33,915 and issue 678,300 finder's warrants, which are exercisable into one common share of the company at a price of 10 cents per common share for a period of 24 months from the date of issuance. Any shares issued pursuant to the finder's warrants are subject to a hold period expiring on April 21, 2024, for the first tranche and May 19, 2024, for the final tranche.

Securities issued under this private placement are subject to a hold period expiring on April 21, 2024, for the first tranche and May 19, 2024, for the final tranche.

Bayhorse Silver chief executive officer Graeme O'Neill has subscribed for 5.1 million units ($255,000) of the private placement. He has financed his subscription partly through arranged sales and through the facility of the TSX Venture Exchange. Bayhorse Silver chief financial officer Rick Low has subscribed for 1.2 million units ($60,000) 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, exceed 25 per cent of the company's market capitalization.

The company announces that it has cancelled the debt settlement previously announced on Sept. 25, 2023, where it was intended to settle outstanding indebtedness owing indirectly to Mr. O'Neill, CEO and a director of the company, in the sum of $30,000 by the issuance of an aggregate of two million common shares in the capital stock of the company at a price of 1.5 cents per share.

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.