Posted on Feb 3, 2021 in News Release

January 29, 2021                                                                                                   BHS2021-05

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse”) announces, that, due to significant demand, and subject to TSX-V Exchange approval, it has increased its previously announced non-brokered private placement for up to 8,000,000 Units at $0.08 cents per Unit for gross proceeds of $640,000 to up to 20,000,000 million units for gross proceeds of $1,600,000.

Each C$0.08 cent Unit will consist of one (1) common share and one (1) transferable common share purchase warrant, with each warrant exercisable into one (1) common share of the Company at an exercise price of $0.15 cents, exercisable for a period of 24 months from the 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 of completing the silver Offtake Agreement with Ocean Partners UK Limited for delivery of the initial 300 ton silver concentrate, underground drilling at the Bayhorse Silver Mine as well as general and administrative costs.

Bayhorse CEO Graeme O’Neill comments “during this past twelve months, Bayhorse has significantly advanced its ability to ship silver concentrate from its flagship Bayhorse Silver Mine. Our goal was to enter into a silver concentrate Off-Take Agreement with a strong partner, now reached with Ocean Partners UK Limited (“Ocean”). Numerous analysts have been calling for much higher silver prices as we entered 2021. This past week, the Reddit participation in the silver market appears to have precipitated this rise. The gold/silver ratio that rose to 131:1 in early 2020, now looks as if it is fully reversing in an overswing, and in my opinion, may go as low as 40:1 before reverting back to the mean. We believe the rise in silver prices will significantly benefit Bayhorse as it prepares to ship its silver/copper concentrate under our Off-Take Agreement with Ocean.”

The Company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability, and 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.

Finder fees may be payable on a portion of the financing not taken down by insiders according to the policies of the TSX-V.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.

On Behalf of the Board.

Graeme O’Neill, CEO