February 2, 2026 BHS2026-05
Bayhorse Silver Inc. (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the "Company" or "Bayhorse") announces the close of its warrant exercise incentive program (the "Incentive Program") as of 4:00 p.m. (PDT) on January 30, 2026.
The warrants (the "Eligible Warrants") were issued in connection with a private placement that closed on February 1, 2021, and are exercisable to acquire one common share of the Company (a "Warrant Share") at a price of $0.15 per Warrant Share until February 1, 2026 (the "Expiry Date"). Under the terms of the Incentive Program, each holder who exercised an Eligible Warrant prior to or on January 30, 2026 would receive, for each Eligible Warrant exercised, one additional common share purchase warrant (an "Incentive Warrant").
Of the 20 million Eligible Warrants, 3,894,500 were exercised for gross proceeds of $584,175, with the remaining 16,105,500 warrants expiring unexercised on February 1, 2026. The Company will issue 3,894,500 Incentive Warrants that will expire on February 1, 2027. Securities issued under this Incentive Program will be subject to a hold period expiring on June 2, 2026.
Each Incentive Warrant will entitle the holder to acquire one additional common share of the Company at an exercise price of $0.16 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 equals or exceeds $0.22 for ten (10) consecutive trading days, the Company will be entitled to accelerate expiry of the Incentive Warrants by issuing a press release announcing the same and the Incentive Warrants will thereafter expire 30 calendar days from the date of such notice.
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 "TSXV").
Bayhorse CEO, Graeme O'Neill, exercised 1,500,000 Eligible Warrants and will be issued 1,500,000 Incentive Warrants. Bayhorse CFO, Rick Low, exercised 175,000 Eligible Warrants and will be issued 175,000 Incentive Warrants. This participation by Bayhorse's CEO and CFO constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders, nor the consideration for the securities paid by such insiders, exceed 25% of the Company's market capitalization.
Bayhorse CEO Graeme O'Neill comments on the extreme market volatility in silver prices this past week that culminated in Comex Silver Futures ("Comex") dropping from a high of $118 per ounce on Thursday, January 29, 2026 to a Comex close of $85 per ounce on Friday, January 30, 2026, an unprecedented drop of $33 per ounce. Currently, there is still a premium between spot silver on Shanghai Metals Exchange price and spot silver on Comex. , (China Silver Price Today | Shanghai Premium - MetalCharts) He is of the opinion that the paper market and the physical market has for now, disconnected and while this may affect many, he believes the junior developers and explorers will probably remain relatively unaffected. He is also of the opinion that there will be a snap back in the share prices of silver and gold juniors once the shock has worn off.
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