Mr. Graeme O'Neill reports

BAYHORSE SILVER CLOSES ITS RECENTLY ANNOUNCED 25 MILLION UNIT PRIVATE PLACEMENT FOR ONGOING WORK AT THE BAYHORSE SILVER MINE AND IP SURVEY ON ITS ADJACENT PEGASUS PROJECT, IDAHO, USA

Bayhorse Silver Inc. has closed the final tranche of its non-brokered private placement that was announced on Sept. 10, 2025, consisting of 25 million units for gross proceeds of $1-million.

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 induced polarization survey (48 per cent) to further define drill targets on the Pegasus project for both Bayhorse-style silver mineralization and testing 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).

Subject to the approval of the TSX Venture Exchange, the company will pay cash finders' fees of $38,640 and issue 966,000 finders' warrants, which are 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.

Bayhorse chief executive officer Graeme O'Neill has subscribed for 8,552,125 units that 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.

Securities issued under this placement will be subject to a hold period expiring on Jan. 19, 2026.

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, 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 to 200 tons per day that 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.