Mr. Graeme O'Neill reports

BAYHORSE SILVER CLOSES WARRANT EXERCISE INCENTIVE PROGRAM

Bayhorse Silver Inc. closed its warrant exercise incentive program as of 4 p.m. PDT on Jan. 30, 2026.

The warrants were issued in connection with a private placement that closed on Feb. 1, 2021, and are exercisable to acquire one common share of the company at a price of 15 cents per warrant share until Feb. 1, 2026. Under the terms of the incentive program, each holder who exercised an eligible warrant prior to or on Jan. 30, 2026, would receive, for each eligible warrant exercised, one additional common share purchase warrant.

Of the 20 million eligible warrants, 3,894,500 were exercised for gross proceeds of $584,175, with the remaining 16,105,500 warrants expiring unexercised on Feb. 1, 2026. The company will issue 3,894,500 incentive warrants that will expire on Feb. 1, 2027. Securities issued under this incentive program will be subject to a hold period expiring on June 2, 2026.

Each incentive warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 16 cents per share for a period of 12 months from the date of issuance. In the event that the closing price of the company's common shares equals or exceeds 22 cents for 10 consecutive trading days, the company will be entitled to accelerate expiry of the incentive warrants by issuing a press release announcing the same, and the incentive warrants will thereafter expire 30 calendar days from the date of such notice.

The incentive program is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.

Bayhorse chief executive officer Graeme O'Neill exercised 1.5 million eligible warrants and will be issued 1.5 million incentive warrants. Bayhorse chief financial officer Rick Low exercised 175,000 eligible warrants and will be issued 175,000 incentive warrants. 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 securities acquired by the insiders, nor the consideration for the securities paid by such insiders exceeds 25 per cent of the company's market capitalization.

Mr. O'Neill commented on the extreme market volatility in silver prices this past week that culminated in Comex silver futures dropping from a high of $118 per ounce on Thursday, Jan. 29, 2026, to a Comex close of $85 per ounce on Friday, Jan. 30, 2026, an unprecedented drop of $33 per ounce. Currently, there is still a premium between spot silver on Shanghai Metals Exchange price and spot silver on Comex. He is of the opinion that the paper market and the physical market have, for now, disconnected, and, while this may affect many, he believes the junior developers and explorers will probably remain relatively unaffected. He is also of the opinion that there will be a snapback in the share prices of silver and gold juniors once the shock has worn off.

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 up 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.

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