Bayhorse receives $584,175 from warrant exercise

Executive Summary

• Bayhorse Silver Inc. closed its warrant exercise incentive program on January 30, 2026, with 3,894,500 eligible warrants exercised for gross proceeds of $584,175.
• The company will issue 3,894,500 incentive warrants to exercising holders, subject to TSX Venture Exchange approval and a statutory hold period expiring June 2, 2026.
• CEO and CFO participation in the exercise constitutes a related-party transaction exempt from formal valuation and minority shareholder approval requirements under MI 61-101.

Key Details

• Program Closure: Closed at 4 p.m. PDT on January 30, 2026.
• Original Warrants: Issued February 1, 2021, exercisable at $0.15 per share until February 1, 2026.
• Exercise Volume: 3,894,500 of 20 million eligible warrants exercised; 16,105,500 warrants expired unexercised on February 1, 2026.
• Gross Proceeds: $584,175.
• Incentive Warrants Issued: 3,894,500 new warrants, expiring February 1, 2027.
• Incentive Warrant Terms: Exercise price of $0.16 per share, valid for 12 months from issuance. Acceleration clause triggers if common share closing price equals or exceeds $0.20 for 10 consecutive trading days, causing warrants to expire 30 calendar days after notice.
• Hold Period: Securities issued under the incentive program are subject to a hold period expiring June 2, 2026.
• Regulatory Conditions: Subject to receipt of all necessary regulatory approvals, including final approval from the TSX Venture Exchange.
• Insider Participation: CEO Graeme O'Neill exercised 1.5 million warrants (receiving 1.5 million incentive warrants); CFO Rick Low exercised 175,000 warrants (receiving 175,000 incentive warrants).
• Related-Party Transaction Status: Exempt from MI 61-101 formal valuation and minority shareholder approval requirements as the fair market value of securities acquired and consideration paid by insiders do not exceed 25% of the company's market capitalization.

Notable Quotes

• "Mr. O'Neill commented on the extreme market volatility in silver prices this past week that culminated in Comex silver futures dropping from a high of $118 per ounce on Thursday, Jan. 29, 2026, to a Comex close of $85 per ounce on Friday, Jan. 30, 2026, an unprecedented drop of $33 per ounce."
• "He is of the opinion that the paper market and the physical market have, 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 snapback in the share prices of silver and gold juniors once the shock has worn off."