Mr. Graeme O'Neill reports

BAYHORSE SILVER ANNOUNCES REDUCTION OF PREVIOUS ANNOUNCED PRIVATE PLACEMENT

Pursuant to the news release dated Jan. 27, 2023, Bayhorse Silver Inc. has closed a non-brokered private placement of 12,787,500 units at four cents per unit for gross proceeds of $511,500, with each unit consisting of one common share and one transferable share purchase warrant to acquire one additional common share at a price of 10 cents per share, exercisable for a period 24 months.

Subsequent to the issuance of the news release, two million units to be issued to Graeme O'Neill, the company's chief executive officer and a director, were cancelled as a result of complications with regard to payment for the units. The units were held with the company's transfer agent prior to their cancellation and were never received by Mr. O'Neill. As a result of this, the private placement was reduced to 10,787,500 units for gross proceeds of $431,500. Mr. O'Neill holds approximately 15 million shares of the company at this time.

The company also announces that, further to the news release dated Dec. 3, 2024, it has withdrawn its application with the TSX Venture Exchange to extend the expiry date of 10,787,500 warrants with an exercise price of 10 cents per share, expiring on Dec. 20, 2024. As a result, the expiry date of the warrants was not extended, and they expired on Dec. 20, 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 and 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 exploring and building mines.