Mr. Graeme O'Neill reports

BAYHORSE COMMISSIONING SILVER MILLING AND CONCENTRATE CIRCUIT AT THE BAYHORSE SILVER MINE; CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Bayhorse Silver Inc. is commissioning the upgraded silver concentrate circuit at the Bayhorse silver mine, Oregon, United States. Milling circuit capacity has been upgraded to process 200 tons per day.

The milling circuit processes the preconcentrate product from the X-ray transmissive ore sorter, which reduces the as-mined tonnage by 70 per cent. It consists of a crushing circuit, a regrind circuit, a gravity circuit and a frothing circuit.

Current modifications will provide the company additional options in the production of silver concentrates and permit tailoring the silver concentrate into two streams: (i) a higher-value silver/copper concentrate; (ii) and a lower-value zinc/antimony/lead concentrate.

Following commissioning this week, the circuit will be fully operational, producing a minus-100-mesh silver concentrate.

Bayhorse chief executive officer Graeme O'Neill commented, "Bringing the upgraded circuit on-line will allow for a very consistent concentrate and the ability to create two mineral streams that will lessen the penalties levied for the lower-value minerals in the refining stream for the production of pure silver."

The company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability. The company also advises there is an increased uncertainty and specific economic and technical risk of failure with any production decision. These risks include, but are not limited to, a drop in price of commodities produced, namely silver, copper, lead and zinc, from the pricing used to make a production decision. Failure of grades of the produced material to fall within the parameters used to make the production decision and increase in mining costs due to changes within the mine during development and mining procedures. There are also metallurgical recovery changes that cannot be anticipated at the time of production.

The company has closed, subject to the approval of the TSX Venture Exchange, a first tranche of 1,555,000 units at 12.5 cents per unit of the previously announced non-flow-through private placement for gross proceeds of $194,375. The units issued under the placement are subject to a four-month hold period until Jan. 28, 2020.

Each non-flow-through unit consists of one common share and one transferable common share purchase warrant, with each warrant exercisable into one common share of the company at an exercise price of 25 cents for a period of 24 months from the date of issuance.

In addition to any other exemption available to the company, participation in the private placement 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.

Proceeds are to advance the Bayhorse silver mine and for general corporate purposes.

Mr. O'Neill has subscribed for 640,000 units of the private placement and has sold, both privately and through the facilities of the TSX-V, 700,000 common shares of the company to facilitate his subscription.

This news release has been prepared on behalf of the Bayhorse Silver board of directors, which accepts full responsibility for its contents. Dr. Stewart Jackson, PGeo, a qualified person and consultant to the company, has prepared, supervised the preparation of and approved the technical content of this press release.

About Bayhorse Silver Inc.

Bayhorse Silver, a junior exploration company, has earned a 100-per-cent interest in the historic Bayhorse silver mine, Oregon, United States, and has optioned the Brandywine precious-metals-rich volcanogenic massive sulphide property in British Columbia, Canada. The company has an experienced management and technical team with extensive exploration and mining expertise.