Mr. Graeme O'Neill reports

BAYHORSE INCREASES NON-BROKERED PRIVATE PLACEMENT TO 18 MILLION UNITS

Bayhorse Silver Inc. has, due to substantial oversubscriptions and subject to TSX Venture Exchange approval, increased its previously announced non-brokered private placement to 18 million units at five cents per unit for gross proceeds of $900,000.

Each five-cent unit consists of one common share and one transferable common share purchase warrant. Each warrant is exercisable into one common share of the company at an exercise price of 10 cents, or, at the warrantholder's option, every 200 warrants are exercisable into one ounce of silver at an exercise price of $20 per ounce. The warrants are exercisable for a period of 24 months from the date of issuance. The exercise of the silver option into silver is subject to the following conditions:

• The silver option may only be exercised after the company mines and processes silver from the Bayhorse property prior to the maturity date of the warrants, provided that the company, at its sole discretion, delivers written notice to warrantholders that they shall have the right to receive payment in kind by delivery of physical ounces of silver.
• The exercise of the silver option is subject to a minimum of 5,000 warrants (25 ounces of silver).

In addition to any other exemption available to the company, participation in the non-brokered financing 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.

The funds raised are for the purpose of optimizing the metallurgical work on the silver recovery from the upgrading, processing and refining of silver mineralization from the Bayhorse silver mine, Oregon, United States, as well as for general and administrative purposes.

Bayhorse chief executive officer Graeme O'Neill commented, "With the recent resurgence in precious metals prices, we have seen increased interest in our current financing so, subject to exchange approval, have increased it to meet the subscriptions received."

The company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and 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: (i) a drop in price of commodities produced, namely silver, copper, lead and zinc, from the pricing used to make a production decision; (ii) failure of grades of the produced material to fall within the assumptions used to make the production decision; (iii) an increase in mining costs due to changes within the mine during development and mining procedures; and (iv) metallurgical recovery changes that cannot be anticipated at the time of production.

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

Securities issued under this placement will be subject to a four-month-and-one-day hold period from the date of issuance.

Bayhorse Silver is an exploration and production company with a 100-per-cent interest in the historical Bayhorse silver mine, located in Oregon, United States, and an option on the Brandywine precious-metal-rich, volcanogenic massive sulphide property, located in British Columbia, Canada. The company has an experienced management and technical team with extensive mining expertise surrounding exploration and building mines.