Mr. Graeme O'Neill reports

BAYHORSE CLOSES FIRST TRANCHE OF NON-FLOW-THROUGH FINANCING

Bayhorse Silver Inc. has closed a first tranche of 2,806,562 units of its previously announced five-million-non-flow through-unit private placement for gross proceeds of $224,525. Each non-flow-through unit will consist of one common share at eight cents per share and one transferable common share purchase warrant exercisable at 18 cents for two years from date of issuance.

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 advancing the company's Brandywine project and for 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 general and administrative purposes.

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.

Graeme O'Neill, a director and officer of the company, has subscribed for 1.75 million units of the placement. He has financed his subscription through the sale, both privately and through the facilities of the TSX-V of 1.75 million shares of the company.

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