Mr. Graeme O'Neill reports

BAYHORSE SILVER ANNOUNCES WARRANT EXERCISE INCENTIVE PROGRAM

Bayhorse Silver Inc. has arranged a warrant exercise incentive program relating to 20 million outstanding common share purchase warrants. The eligible warrants were issued in connection with a private placement that closed on Feb. 1, 2021, and are exercisable to acquire one common share of the company at a price of 15 cents per share until Feb. 1, 2026.

The incentive program is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.

The incentive program is designed to encourage the early exercise of the eligible warrants during the period from Jan. 6, 2026, until 4 p.m. PDT on Jan. 30, 2026.

Under the terms of the incentive program, each holder who exercises an eligible warrant during the incentive period will receive, for each eligible warrant exercised, one additional common share purchase warrant. Each incentive warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 16 cents per share for a period of 12 months from the date of issuance.

In the event that the closing price of the company's common shares on the TSX-V equals or exceeds 22 cents for 10 consecutive trading days, the company will be entitled to accelerate the expiry of the incentive warrants. If the company elects to do so, it will issue a press release announcing the acceleration event and the incentive warrants will thereafter expire 30 calendar days from the date of such notice.

All incentive warrants will be issued to participating holders promptly following the expiry of the incentive period.

The incentive warrants, and any common shares issued upon exercise thereof, will be subject to a statutory hold period of four months and one day from the date of issuance of the incentive warrants in accordance with applicable Canadian securities laws.

Eligible warrants that remain unexercised after the incentive period will continue to be exercisable on their original terms until Feb. 1, 2026. However, no incentive warrants will be issued in respect of any eligible warrants exercised after Jan. 30, 2026.

About Bayhorse Silver Inc.

Bayhorse is an exploration and production company with a 100-per-cent interest in the historic Bayhorse silver mine located in Oregon, United States, with a National Instrument 43-101 inferred resource of 292,300 tons at a grade of 21.65 ounces per ton (673 grams per tonne) for 6.3 million ounces of silver (Turner et al., 2018), and the Pegasus project, in Washington county, Idaho. The Bayhorse silver mine and the Pegasus project are 44 kilometres southwest of Hercules Metals' porphyry copper discovery. The Bayhorse mine is a minimum environmental impact facility capable of processing at a mining rate up 200 tons per day that includes a state-of-the-art 40-ton-per-hour Steinert ore-sorter that reduces waste rock entering the processing stream by up to 85 per cent. The company has established an up-to-60-ton-per-day mill and standard flotation processing facility in nearby Payette county, Idaho, United States, with an offtake agreement in place with Ocean Partners U.K. Ltd. The company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.