Mr. Graeme O'Neill reports

BAYHORSE SILVER ANNOUNCES A 15 MILLION UNIT NON-BROKERED PRIVATE PLACEMENT FOR THE RECENTLY ANNOUNCED DRILL PROGRAM AT THE BAYHORSE SILVER MINE, OREGON, AND IP SURVEY ON ITS ADJACENT PEGASUS PROJECT, IDAHO, USA

Subject to the approval of the TSX Venture Exchange, Bayhorse Silver Inc. has arranged a 15-million-unit non-brokered private placement at five cents per unit for gross proceeds of $750,000.

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 nine cents per common share for a period of 36 months from the date of issuance.

The funds received are to conduct the diamond drilling program on the recently identified induced polarization low-resistivity targets at the Bayhorse silver mine, an IP survey to further define drill targets on the Pegasus project for Bayhorse-style silver mineralization and to test for the presence of a porphyry copper deposit, to advance the final Bayhorse mine permitting, and for general and administrative expenses.

None of the private placement proceeds will be paid to non-arm's-length parties or persons conducting investor relations activities. 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 Canadian Securities Administrators' 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 Venture Exchange.

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 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 lies 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 has an experienced management and technical team with extensive mining expertise in both exploration and building mines.