Mr. Graeme O'Neill reports

BAYHORSE SILVER ANNOUNCES CLOSING OF BROKERED LIFE OFFERING FOR GROSS PROCEEDS OF C$4.1 MILLION

Bayhorse Silver Inc. has closed its previously announced best effort private placement for gross proceeds of $4,113,480, which includes the partial exercise of the agent's option. Pursuant to the offering, the company sold 58,764,000 units of the company at a price of seven cents per unit. Red Cloud Securities Inc. acted as sole agent and bookrunner in connection with the offering.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of 10 cents at any time on or before April 29, 2029.

The company intends to use the net proceeds of the offering for the exploration and advancement of the company's Bayhorse silver mine and the adjacent Pegasus porphyry copper project in Idaho, United States, as well as for general working capital and corporate purposes, as is more fully described in the offering document (as defined herein).

In accordance with National Instrument 45-106 (Prospectus Exemptions), the units were issued to purchasers resident in Canada pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption). The securities issuable from the sale of units issued pursuant to the listed issued financing exemption to purchasers resident in Canada are immediately freely tradable in accordance with applicable Canadian securities legislation.

As consideration for its services, Red Cloud received a cash fee of $234,123 and 3,344,610 non-transferable common share purchase warrants. Each broker warrant is exercisable into one common share at the offering price at any time on or before April 29, 2029. The broker warrants and any common shares issuable upon any future exercise of the broker warrants will be subject to a hold period in Canada in accordance with applicable Canadian securities law, expiring on Aug. 30, 2026.

Certain insiders of the company subscribed for an aggregate of 1,083,000 units for aggregate gross proceeds of $75,810 in the offering. The insiders' participation constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on the exemption from the valuation requirements and minority shareholder approvals in MI 61-101 pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the value of the insiders' participation in the offering does not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

There is an offering document dated April 14, 2026, related to the offering that can be accessed under the company's profile at SEDAR+ and on the company's website.

The closing of the offering remains subject to the final approval of the TSX Venture Exchange.

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 porphyry copper 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.

We seek Safe Harbor.