Bayhorse Closes 1.1 Million Unit First Tranche of Flow-Through Non-Brokered Private Placement

FEBRUARY 6, 2015 – BHS2015-08

Bayhorse Silver Inc. (the “Company” or “Bayhorse”) announces that, subject to TSX-V final approval, it has closed a first tranche of 1.1 million Units at $0.10 cents Unit of its previously announced 2.5 million Unit non-brokered flow-through private placement for gross proceeds of $110,000. The final tranche of this placement in expected to close shortly.
Each Unit consists of one (1) flow through common share and one (1) transferable non flow through common share purchase warrant, with each warrant exercisable into one (1) common share of the Company at an exercise price of $0.15, exercisable for a period of 24 months from the date of issuance.
The funds raised are for the Little Swan project in Saskatchewan.

A finder’s fee was paid on a portion of the private placement, being $3,500 cash and 35,000 agent’s warrants, with each warrant being exercisable into one common share at an exercise price of $0.15 per share, exercisable for a period of 24 months from the date of issuance.

Mr. Graeme O’Neill, a director and officer of the Company subscribed for 500,000 Units of the placement and upon completion of the placement holds 3,561,000 common shares, representing 14.53% of the Company’s issued and outstanding shares. The price of the units was determined in accordance with the policies of the TSX Venture Exchange. The acquisition of units by insiders under the private placement was exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 pursuant to sections 5.5(a) and 5.7(a) of that instrument.

All securities issued under the private placement are subject to a four-month hold period which expires June 7, 2015.