Mr. Graeme O'Neill reports

BAYHORSE SILVER CLOSES FIRST TRANCHE OF ITS RECENTLY ANNOUNCED PRIVATE PLACEMENT OF UP TO 25 MILLION UNITS FOR ONGOING WORK AT THE BAYHORSE SILVER MINE AND IP SURVEY ON ITS ADJACENT PEGASUS PROJECT, IDAHO, USA

Bayhorse Silver Inc. has closed a first tranche consisting of 9,351,000 units of its previously announced 25-million-unit non-brokered private placement for gross proceeds of $374,040.

Each unit consists 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).

Bayhorse chief executive officer Graeme O'Neill has subscribed for eight million units, which he has financed through arranged sales privately through the facilities of the TSX Venture Exchange. Bayhorse chief financial officer Rick Low has subscribed for 375,000 units. 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 exceeds 25 per cent of the company's market capitalization.

Finders' fees may be payable on a portion of the financing not taken down by insiders, according to the policies of the TSX-V.

Securities issued under this placement will be subject to a hold period expiring on Jan. 16, 2026.

The company has granted 2.6 million incentive stock options to officers, directors, consultants and employees of the company, exercisable at six cents for five years, to replace 3,075,000 expiring options.

This news release has been prepared on behalf of Bayhorse Silver's board of directors, which accepts full responsibility for its content on behalf of the board.

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 a National Instrument 43-101 inferred resource of 292,300 tons at a grade of 21.65 ounces per ton (673 grams per tonne) 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 of up 200 tons per day, which includes a state-of-the-art 40-ton-per-hour Steinert ore sorter that 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, 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.