BAYHORSE SILVER ANNOUNCES WARRANT EXERCISE INCENTIVE PROGRAM Bayhorse Silver Inc, (BHS: TSX -V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the “Company” or “Bayhorse announces a warrant exercise incentive program (the “Incentive Program”) relating to

January 5, 2026 BHS2026-01

BAYHORSE SILVER ANNOUNCES WARRANT EXERCISE INCENTIVE PROGRAM

Bayhorse Silver Inc, (BHS: TSX -V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the “Company”

or “Bayhorse announces a warrant exercise incentive program (the “Incentive Program”) relating to

20 million outstanding common share purchase warrants (the “Eligible 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

share until February 1, 2026.

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”).

The Incentive Program is designed to encourage the early exercise of the Eligible Warrants during the

period from January 6, 2026, until 4:00 p.m. (PDT) on January 30, 2026 (the “Incentive Period”).

Under the terms of the Incentive Program, each holder who exercises an Eligible Warrant during the

Incentive Period will receive, for each Eligible Warrant exercised, one additional common share

purchase warrant (an “Incentive Warrant”). Each Incentive War rant 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 on the TSXV equals or exceeds

$0.22 for ten (10) consecutive trading days (an “Acceleration Event”), the Company will be entitled to

accelerate the expiry of the Incentive Warrants. If the Company elects to do so, it will issue a press

release announcing the Acceleration Event, and the Incentive Warrants will thereafter expire 30

calendar days from the date of such notice.

All Incentive Warrants will be issued to participating holders promptly following the expiry of the

Incentive Period.

The Incentive Warrants, and any common shares issued upon exercise thereof, will be subject to a

statutory hold period of four months and one day from the date of issuance of the Incentive Warrants,

in accordance with applicable Canadian securities laws.

Eligible Warrants that remain unexercised after the Incentive Period will continue to be exercisable on

their original terms until February 1, 2026. However, no Incentive Warrants will be issued in respect

of any Eligible Warrants exercised after January 30, 2026.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which

accepts full responsibility for its content.

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.

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.