Bayhorse Silver Inc (BHSIF)

[Mr. Zen]

The Loan is for a term of 12 months, is unsecured and bears interest at the rate of 12% per annum, compounded quarterly and payable quarterly in arrears. The Company has issued a promissory note for the Loan. As additional consideration for the Loan, the Company has agreed to issue 330,000 bonus shares, that are equal to 20% of the principal amount of the Loan issued at a deemed price of $0.12 per share (the "Bonus Shares").

Mr. Graeme O'Neill, a director and officer of the Company is a lender and upon the issuance of the Bonus Shares will hold 2,912,310 common shares

$198k to build a mine is chump change, and it is a loan