BAYHORSE CLOSES OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT Bayhorse Silver Inc. BHS: TSX -V (the “ Company” or “ Bayhorse”) announces, that, due to overwhelming demand, and subject to TSX-V Exchange approval, it has increased its previously

February 1, 2021 BHS2021-06

BAYHORSE CLOSES OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT

Bayhorse Silver Inc. BHS: TSX -V (the “ Company” or “ Bayhorse”) announces, that, due to

overwhelming demand, and subject to TSX-V Exchange approval, it has increased its previously

announced non-brokered private placement for up to 20,000,000 million units by the allowable

10% overallotment to 22,000,000 for gross proceeds of $1,760,000, and has closed the financing.

Each C$0.08 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 $0.15 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.

Bayhorse CEO, Graeme O’Neill, has subscribed for 5,750,000 Uni ts of the Placement, funding his

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

Bayhorse CFO, Rick Low, has subscribed for 375,000 Units.

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 both fulfilling the silver Offtake Agreement with Ocean

Partners UK Limited (“Ocean”) for delivery of the first 300 tonnes of silver concentrate, and to

initiate underground drilling to expand the Bayhorse Silver Mine resource as well as general and

administrative costs.

Bayhorse CEO Graeme O’Neill comments “When we acquired the Bayhorse Silver Mine in 2014,

spot silver was at US$21 per ounce and the Gold/Silver ratio was under 70:1, and steadily rose

to 131:1 this past year, when silver fell as low as US$11 per ounce. We have persisted during

these seven hard and lean years, and appreciate that many of our shareholders have been loyal

and stuck with us during these years. We have built the Bayhorse Silver Mine through hard work

and perseverance during this time, and have significantly advanced our ability to ship silver

concentrate under our recently concluded Offtake Agreement with a strong partner, now

reached with Ocean . We look forward to a rewarding next seven years for our shareholders,

employees, partners and other stakeholders .”

Graeme O’Neill further comments, “This past week we have seen a dramatic change in the silver

market with the advent of the Reddit participation that appears to have been one of the reasons

that precipitated this change in the market’s perception of silver. The gold/silver ratio that rose

to 131:1 in early 2020, now looks as if it is fully reversing in an overswing, that in my opinion,

may go as low as 40:1 before reverting back to the mean. We believe the rise in silver spot prices

will significantly benefit Bayhorse as it prepares to initiate shipments of its silver/copper

concentrate under our Offtake Agreement with Ocean.”

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.

Finder fees may be payable on a portion of the financing not taken down by insiders according

to the policies of the TSX-V.

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 f lotation 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.