Drilling Continues to Expand Anna Lake Uranium Deposit, Central Mineral Belt Uranium Project, Labrador

Drilling Continues to Expand Anna Lake Uranium Deposit, Central Mineral Belt Uranium Project, Labrador

Wednesday, August 6th 2008

Bayswater Uranium Corporation is pleased to report additional drill results and provide an exploration update on its 2008 exploration program for the Central Mineral Belt Uranium Project, Labrador. Currently, exploration efforts are in full swing on the Company’s 100% owned property. Diamond drilling, geophysical, radon flux, soil geochemical, line-cutting and prospecting crews are all currently active on the property. Wide spaced, step-out drilling continues to expand the Anna Lake deposit to depth and has currently traced the continuity of the zone to depths of up to 430 meters.

A 20,000 meter diamond drill program using two heli-portable rigs commenced May 2, 2008 on the Company’s Anna Lake Project. To date, a total of approximately 11,000 meters in twenty four holes have been drilled on both the main Anna Lake deposit and anomalous reconnaissance targets along the Anna Lake 10 km favourable corridor to the northeast. Seventeen diamond drill holes have been collared on the Anna Lake deposit since the start of the 2008 program. Final assays results have been received for ten of these holes with assays pending for the balance of all other holes. Results from the drilling program continue to expand the size of the deposit and have currently confirmed the continuity of the mineralization to a depth of at least 430 meters. The mineralized zone is planar and dips approximately 60 – 70 degrees to the east.

As previously announced in a press release dated May 12, 2008, the drilling program has been aggressive with 100 meter step-outs to delineate the deposit at depth and laterally while continuing to focus on the higher grade plunging zones.

Geological work performed during 2008, suggests that the Anna Lake uranium deposit is hosted within the Post Hill Group of Proterozoic aged metasediments. The Post Hill Group hosts several other uranium deposits within the Central Mineral Belt including the Kitts, Inda, Nash and Gear. A belt of Aillik Group felsic volcanic rocks similar to the host lithology of the Michelin uranium deposit has also been identified on the northwest side of the Anna Lake structural corridor. Ongoing work will continue to evaluate the potential of this belt during the 2008 field season.

Induced Polarization, radon flux and soil geochemical ground surveys are near completion on the gridded area around the Anna Lake deposit and favourable 10 km corridor to the northeast. It is expected this work will be completed by mid-August. Also, a ground prospecting crew consisting of ten prospectors are currently engaged evaluating high priority targets. Prospecting will focus on priority targets outlined from the 2006 and 2007 field seasons along with new geological interpretations of airborne data within the claims.

An updated drill hole location map and longitudinal section will be available on Bayswater’s website at www.bayswateruranium.com.

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