Mr. Graeme O'Neill reports

BAYHORSE CLOSES SHARES FOR DEBT SETTLEMENT

Further to Bayhorse Silver Inc.'s news release dated Aug. 11, 2024, the company has received TSX Venture Exchange approval of the proposed settlement of indebtedness owed directly and indirectly to officers and an employee of the company. The amount to be settled has been reduced from $120,000 to $117,000, resulting in the issuance of an aggregate of 2,925,000 common shares in the capital stock of the company at a price of four cents per share.

Graeme O'Neill, chief executive officer and a director of the company, settled $57,000 for an aggregate of 1,425,000 common shares, Rick Low, chief financial officer of the company, settled $27,900 for an aggregate 697,500 common shares and Donna Moroney, corporate secretary of the company, settled $12,000 for an aggregate 300,000 common shares.

The issuance of the debt settlement shares to Mr. O'Neill, Mr. Low and Ms. Moroney constitutes a related party transaction under MI 61-101. The company is exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the shares for debt transaction under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) nor the fair market value of the consideration for the transaction exceeds 25 per cent of the company's market capitalization (as determined under MI 61-101).

Securities issued under the shares for debt are subject to a hold period expiring on Dec. 29, 2024.

About Bayhorse Silver Inc.

Bayhorse is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine located in Oregon, United States, and the Pegasus project, in Washington county, Idaho. The Bayhorse silver mine and the Pegasus project are 44 kilometres southwest of Hercules Metals' porphyry copper discovery. The Bayhorse mine includes a 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 concentrate ranging between 7,500 to 15,000 grams per tonne 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.