BAYHORSE ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

January 26, 2019 BHS2019-02

Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) announces, subject to TSX-V Exchange approval, a non-brokered private placement for up to 7,500,000 Units at $0.10 per Unit for gross proceeds of $750,000.

Each C$0.10 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.

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 45313 in participating jurisdictions.

The funds raised are for the purpose of optimizing the silver recovery from the upgrading, processing and refining of silver mineralization submitted to refiners and smelters (BHS2018-36) from the Bayhorse Silver Mine, as well as general and administrative costs.

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.

Graeme O’Neill, a Director and Insider of Bayhorse, is subscribing for 1,500,000 Units of the placement, and has sold 900,000 shares of the Company, through the facilities of the TSX Venture Exchange.

Graeme O’Neill is also converting US$450,000 of principal in convertible debentures at a conversion price of C$0.125 cents, into common shares of Bayhorse for a total of 4,806,360 common shares. He is also converting, subject to TSX-V Exchange approval, C$16,758.45 of accrued interest on the convertible debentures at a conversion price of C$0.10 per share into 167,584 common shares of Bayhorse. Together with the private placement subscription, he will acquire an additional 6,473,944 common shares of the Company for total holdings of 8,291,299 common shares.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr. Stewart Jackson, P.Geo., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of, and approved the technical content of this press release.

On Behalf of the Board.

Graeme O’Neill, CEO 604-684-3394