BAYHORSE SILVER CLOSES WARRANT EXERCISE INCENTIVE PROGRAM Bayhorse Silver Inc. (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the “Company” or “Bayhorse ”) announces the close of its warrant exercise incentive program (the “Incentive
February 2, 2026 BHS2026-05
BAYHORSE SILVER CLOSES WARRANT EXERCISE INCENTIVE PROGRAM
Bayhorse Silver Inc. (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the “Company”
or “Bayhorse ”) announces the close of its warrant exercise incentive program (the “Incentive
Program”) as of 4:00 p.m. (PDT) on January 30, 2026.
The warrants (the “Eligible Warrants”) were issued in connection with a private placement that closed
on February 1, 2021, and are exercisable to acquire one common share of the Company (a “ Warrant
Share”) at a price of $0.15 per Warrant Share until February 1, 2026 (the “Expiry Date”). Under the
terms of the Incentive Program, each holder who exercised an Eligible Warrant prior to or on January
30, 2026 would receive, for each Eligible Warrant exercised, one additional common share purchase
warrant (an “Incentive Warrant”).
Of the 20 million Eligible Warrants, 3,894,500 were exercised for gross proceeds of $584,175, with
the remaining 16,105,500 warrants expiring unexercised on February 1, 2026. The Company will issue
3,894,500 Incentive Warrants that will expire on February 1, 2027. Securities issued under this
Incentive Program will be subject to a hold period expiring on June 2, 2026.
Each Incentive Warrant will entitle the holder to acquire one additional common share of the Company
at an exercise price of $0.16 per share for a period of 12 months from the date of issuance. In the event
that the closing price of the Company's common shares equals or exceeds $0.22 for ten (10) consecutive
trading days, the Company will be entitled to accelerate expiry of the Incentive Warrants by issuing a
press release announcing the same and the Incentive Warrants will thereafter expire 30 calendar days
from the date of such notice.
The Incentive Program is subject to certain conditions, including the receipt of all necessary regulatory
approvals, including the final approval of the TSX Venture Exchange (the “TSXV”).
Bayhorse CEO, Graeme O’Neill, exercised 1,500,000 Eligible Warrants and will be issued 1,500,000
Incentive Warrants. Bayhorse CFO, Rick Low, exercised 175,000 Eligible Warrants and will be issued
175,000 Incentive Warrants. This participation by Bayhorse’s CEO and CFO constitutes a “related
party transaction” as defined under Multilateral Instrument 61- 101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation
and minority shareholder approval requirements of MI 61 -101 as neither the fair market value of the
securities acquired by the insiders, nor the consideration for the securities paid by such insiders, exceed
25% of the Company’s market capitalization.
Bayhorse CEO Graeme O’Neill comments on the extreme market volatility in silver prices this past
week that culminated in Comex Silver Futures (“Comex”) dropping from a high of $118 per ounce on
Thursday, January 29, 2026 to a Comex close of $85 per ounce on Friday, January 30, 2026, an
unprecedented drop of $33 per ounce . Currently, there is still a premium between spot silver on
Shanghai Metals Exchange price and spot silver on Comex. , (China Silver Price Today | Shanghai
Premium - MetalCharts) He is of the opinion that the paper market and the physical market has for
now, disconnected and while this may affect many, he believes the junior developers and explorers
will probably remain relatively unaffected. He is also of the opinion that ther e will be a snap back in
the share prices of silver and gold juniors once the shock has worn off.
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
866-399-6539, 604-684-3394
About Bayhorse Silver Inc.
Bayhorse Silver Inc. is an exploration and production company with a 100% interest in the historic
Bayhorse Silver Mine located in Oregon, USA with a National Instrument 43-101 inferred resource of
292,300 tons at a grade of 21.65 opt (673 g/t) for 6.3 million ounces of silver. (Turner et al. 2018) and
the Pegasus Project, in Washington County, Idaho. The Bayhorse Silver Mine and the Pegasus Project
are 44 km southwest of Hercules Metals’ porphyry copper discovery. The Bayhorse Mine is a
minimum environmental impact facility capable of processing at a mining rate up 200 tons/day that
includes a state of the art 40 ton per hour Steinert Ore -Sorter that reduces waste rock entering the
processing stream by up to 85%. The Company has established an up to 60 ton/day mill and standard
flotation processing facility in nearby Payette County, Idaho, USA with an offtake agreement in place
with Ocean Partners UK Limited. The Company has an experienced management and technical team
with extensive mining expertise in both exploration and building mines.
FORWARD LOOKING STATEMENTS:
This news release includes certain statements that may be deemed “forward- looking statements”. All
statements in this news release, other than statements of historical facts, that address events or
developments that the Company expects to occur, are forwar d-looking statements. Forward-looking
statements are statements that are not historical facts and are generally, but not always, identified by
the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”,
“potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or
“should” occur. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guar antees of future
performance and actual results may differ materially from those in the forward-looking statements. In
particular, these forward- looking statements are based on assumptions regarding: (i) stability in
precious metals markets and silver pric es; (ii) no further significant macroeconomic shocks or
disruptions; (iii) continued market liquidity and investor access to capital; (iv) recovery of investor
sentiment in the junior mining sector; and (v) timely receipt of required regulatory approvals. Factors
that could cause the actual results to differ materially from those in forward -looking statements
include: fluctuations in metal and commodity prices; continued availability of equity capital and
financing; extreme market volatility and changes in investor sentiment; general economic, market, and
business conditions; macroeconomic shocks and trade policy uncertainty; market liquidity constraints;
timing and receipt of regulatory approvals (including from the TSXV); and risk that market recovery
timing may differ materially from management expectations. Readers are cautioned not to place undue
reliance on forward- looking statements. For a complete discussion of risk factors affecting the
Company, please refer to the "Risks and Uncertainties" section of the Company's most recent
Management's Discussion and Analysis available on SEDAR+ at www.sedarplus.ca. Investors are
cautioned that any forward- looking statements are not guarantees of future performance and actual
results or developments may differ materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s
management on the date the statements are made. Except as required by applicable securities laws,
the Company undertakes no obligation to update these forward- looking statements in the event that
management's beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.