Bayhorse Silver Increases & Closes Non-Brokered Private Placement

JANUARY 17, 2015 – BHS2015-03

Bayhorse Silver Inc. (the “Company” or “Bayhorse”) announces that, subject to TSX-V approval, it has increased its previously announced non-brokered private placement of 2 million Units at $0.05 cents to 2.2 million Units at $0.05 cents and has closed the Units placement for gross proceeds of $110,000.

Each Unit consists 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 $0.10, exercisable for a period of 24 months from the date of issuance.

The funds raised will be used for general and administrative costs as well as the Little Swan project .

A finder’s fee was paid on a portion of the private placement, being $2,450 cash and 49,000 agent’s warrants, with each warrant being exercisable into one common share at an exercise price of $0.10 per share, exercisable for a period of 24 months from the date of issuance.

Mr. Graeme O’Neill, a director and officer of the Company subscribed for 300,000 Units of the placement and upon completion of the placement will hold 3,125,000 common shares, representing 13.4% of the Company’s issued and outstanding shares. The price of the units was determined in accordance with the policies of the TSX Venture Exchange. The acquisition of units by insiders under the private placement was exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 pursuant to sections 5.5(a) and 5.7(a) of that instrument.

All securities issued under the private placement are subject to a four-month hold period which expires May 20, 2015.