Mr. Graeme O'Neill reports

BAYHORSE SILVER ANNOUNCES IT HAS INCREASED ITS PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT TO 25 MILLION UNITS FOR ONGOING WORK AT THE BAYHORSE SILVER MINE AND IP SURVEY ON ITS ADJACENT PEGASUS PROJECT, IDAHO, USA, AS WELL AS SHARES FOR DEBT SETTLEMENT.

Bayhorse Silver Inc., subject to the approval of the TSX Venture Exchange, has increased its private placement to issue up to 25 million units at four cents per unit for gross proceeds of $1-million.

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 six cents per common share for a period of 24 months from the date of issuance.

The funds received are to conduct an IP (induced polarization) survey (48 per cent) to further define drill targets on the Pegasus project for both Bayhorse-style silver mineralization and test for the presence of a porphyry copper deposit, to advance the final Bayhorse mine permitting (31 per cent), and for general and administrative expenses (21 per cent). 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 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 Venture Exchange.

In addition, the company has agreed to settle outstanding indebtedness owing indirectly to Donna Moroney, corporate secretary of the company, in the sum of $59,579 by the issuance of an aggregate of 1,489,475 common shares in the capital stock of the company at a price of four cents per share, which transaction is subject to the approval of the TSX Venture Exchange.

The issuance of the debt settlement shares constitutes a related party transaction under Multilateral Instrument 61-101. The company is exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the share-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).

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, with a National Instrument 43-101 inferred resource of 292,300 tons at a grade of 21.65 ounces per ton (oz/t) (673 grams per tonne (g/t)) for 6.3 million ounces of silver (Turner et al., 2018), 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 is a minimum-environmental-impact facility capable of processing at a mining rate up 200 tons per day that includes a state-of-the-art 40-ton-per-hour Steinert ore sorter, which reduces waste rock entering the processing stream by up to 85 per cent. The company has established an up-to-60-ton-per-day mill and standard flotation processing facility in nearby Payette county, Idaho. The company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.