Bayhorse Amends Non-Brokered Private Placement

Posted on Mar 31, 2020 in News Release

March 31, 2020                                                                                        BHS2020-04

BAYHORSE AMENDS TERMS OF 7,500,000
UNIT NON-BROKERED PRIVATE PLACEMENT

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) has amended its previously announced non-brokered private placement for up to 7,500,000 Units at C$0.05 per Unit for gross proceeds of C$375,000. The private placement as originally announced did not conform with Exchange Policy 4.1.8 (b) and has been amended to the following.

Each C$0.05 Unit is to consist of one (1) common share, and one (1) transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable into one (1) common share of the Company at an exercise price of $0.10 cents, or, at the Warrant Holder’s option, each 200 Warrants is exercisable into one (1) ounce of silver at an exercise price of C$20.00 per ounce (the “Silver Option”). The Warrants are exercisable for a period of 24 months from the date of issuance. The exercise of the Silver Option into silver is subject to the following conditions:

  1. The Silver Option may only be exercised after the Company successfully mines and processes silver from the Bayhorse property prior to the maturity date of the Warrants, provided that the Company, at its sole discretion, delivers written notice to each Warrant holder that they shall have the right to receive payment in kind by delivery of physical ounces of silver; and
  2. The exercise of the Silver Option is subject to a minimum of five thousand (5,000) Warrants (25 ounces of silver)

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 optimizing the metallurgical work on the silver recovery from the upgrading, processing and refining of silver mineralization from the Bayhorse Silver Mine, Oregon, USA., as well as general and administrative purposes.

Bayhorse CEO Graeme O’Neill comments, “in these trying times with the
Covid-19 virus running rampant, and many businesses in either limited
operations, or shut down entirely, we must make the health of our miners,
consultants, and management our utmost priority. As a small mine, in a remote
location, we are fortunate we can minimize social contact in our operations,
and, subject to the financing completion, get back to work quickly”

He also comments, “The market dislocation has gold and silver prices in
flux, with almost 25% of annual world silver production reportedly already shut
down in Chile, Peru, and Argentina. With gold refineries off-line, and the
logistics chain for moving silver and gold to mints in disarray, I believe it
will be a while getting back to normal. As a small silver mining operation, we
are more flexible and with nearly 400 tons of pre-sorted silver mineralization
ready for final processing into silver concentrate, we should be able to get
that concentrate ready for shipment in a short period of time once we can
resume operations.”

The Company is not basing any decision to produce on a feasibility study
of mineral reserves demonstrating economic and technical viability, and also
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, a drop in price of commodities produced, namely silver, copper,
lead and zinc, from the pricing used to make a production decision. Failure of
grades of the produced material to fall within the parameters used to make the
production decision and increase in mining costs due to changes within the mine
during development and mining procedures. There are also 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.

Securities issued under this placement will be subject to a four month and one day hold period 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

investors@bayhorsesilver.com

1-866-399-6539

Bayhorse Silver Inc. is
an exploration and production company with a 100% interest in the historic
Bayhorse Silver Mine located in Oregon, USA, and an option on the Brandywine,
precious metals rich, volcanogenic massive sulphide property located in B.C.,
Canada. The Company has an experienced management and technical team with
extensive mining expertise surrounding exploration and building mines.

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