you breed a horse by having two horses together for a while and when she get smiley faces
with each other on the top screen they are getting close to having a foal.

If you keep a female and a male horse together for a while the female may have a baby,
first there will be a sad face on the top screen, than a Ok looking face, than a happy
face and than a really happy face, when its a really happy face your female will have a
baby. They also have to be adult horses.
I hope that helps.

you buy two of the same breed of horses and leave them together without any other horses
and they wont like eachother for a while and then they will sorta be friends and then a
little while later they will be friends and like a day later they will really like
eachother and there will be a face that looks like this :D exept the mouth is filled in
and then a while later they will have a baby.