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BHS.V ·

Bayhorse Closes First Tranche of $1,620,000 Non -Brokered Private Placement FOR $1,210,670

Financings

September 16, 2021 BHS2021-14

BAYHORSE CLOSES FIRST TRANCHE OF $1,620,000 NON -BROKERED PRIVATE

PLACEMENT FOR $1,210,670

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

or “Bayhorse”) has closed a first tranche consisting of 8,967,925 Units for gross proceeds of $

$1,210,670 of its recently announced non-brokered private placement of 12,000,000 Units at

$0.135 cents per Unit for gross proceeds of $1,620,000.

Each C$0.135 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 $0.225 cents, exercisable for a period of 24 months from the date of issuance. The

securities issued are subject to a hold period of four months plus a day 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 of extending the underground drilling program to a

minimum 1,500 meters, for continued sorting and processing of mineral concentrate at the

Bayhorse Silver Mine, and for general and administrative expenses.

Bayhorse CEO, Graeme O’Neill, has subscribed for 6,000,000 Units of the Placement, funding his

subscription with an arranged sale through the facilities of the TSX Venture Exchange (Gypsy swap).

This participation by Bayhorse’s CEO 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 Units acquired by the insider, nor

the consideration for the Units paid by such insider, exceed 25% of the Company’s market

capitalization.

The Company is not basing any decision to produce on a feas ibility study of mineral reserves

demonstrating economic and technical viability and 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, (i) a drop in price of commodities produced, namely silver, copper, lead and zinc,

from the pricing used to make a production decision; (ii) failure of grades of the produced material to

fall within the parameters used to make the production decision; (iii) an increase in mining costs due

to changes within the mine during development and mining procedures; and (iv) 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.

Subject to the approval of the TSX Venture Exchange, the Company has settled $ $166,685.42 of

convertible debenture accrued interest through the issuance of 1,389,044 common shares of the

Company at a price of $0.12 per share, which was the closing price of the Company's stock on the

settlement date of September 13, 2021. In accordance with the TSX Venture Exchange rules, the

shares issued are subject to a hold period of four months plus a day from the date of issuance.

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

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 state of the art Steinert Ore -Sorting technology

reducing waste rock entering the pro cessing stream by up to 85%, we have created a minimum

environmental impact facility capable of mining 200 tons of mineralization per day and the ability to

process and supply 3,600 tons per year of silver/copper concentrate ranging between 7,500 to 15,000

g/t using standard flotation processing at its milling facility in nearby Payette County, Idaho, USA,

with an offtake agreement in place with Ocean Partners UK Limited. The Company also has an option

to acquire an 80% interest in the Brandywine high grade silver/gold property located in B.C. Canada.

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.