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BHS.V ·

Bayhorse Closes Its Non-Brokered Private Placement of 16,500,000 Units FOR $2,227,500

Financings

October 19, 2021 BHS2021-17

BAYHORSE CLOSES ITS NON-BROKERED PRIVATE PLACEMENT OF 16,500,000 UNITS FOR

$2,227,500

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

or “ Bayhorse”) has closed its recently announced non-brokered private placement of

16,500,000 Units at $0.135 cents per Unit for gross proceeds of $2,227,500 (the “Placement”).

Each C$0.135 cent Unit consist s 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 expiring on February 21, 2022.

Bayhorse CEO, Graeme O’Neill, has subscribed for 6,032,075 Units of the Placement, funding his

subscription with an arranged sale through the facilities of the TSX Venture Exchange. 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 paid finder’s fee for the Placement of $2,126.25 in cash and issued 15,750 finder’s

warrants. Each finder’s warrant is 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 Company is not basing any decision to produce on a feasibility 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.

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 processing 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.