Bayswaters Drilling Further Expands Elkhorn Uranium Project, Wyoming

Thursday, August 7th 2008

Bayswater Uranium Corporation is pleased to announce preliminary results from the final 152 holes, including 29 core holes, from its Phase 3 drilling program at the Elkhorn Project in Wyoming. The Company drilled 312 holes including 11,073.5 meters (36,321 feet) around the historic Busfield Mine, which has a NI 43-101 indicated resource. Bayswater previously reported preliminary results on the first 160 holes drilled in a news release dated May 20, 2008.

Drill holes were located on 30.5 meter (100 ft) spaced lines, with 30.5 meters between holes on average, to expand the Busfield resource. Drilling tested the 1220 meter (4000 foot) long area between the Busfield mine and the Vickers mine which is located to the northwest. Drilling also tested the historic Quad, Clover and Tract 41 resource areas. The Busfield and Vickers mines produced approximately 69,000 pounds of uranium from near-surface, sandstone hosted deposits that were operated in 1956-57. The Company’s subsidiary, NCA Nuclear Inc. completed Phase 1 and 2 drilling programs with 70 holes at the Busfield resource area in 2006, which defined a NI 43-101 compliant indicated uranium resource of 250,000 tonnes at 0.08 % for 397,000 lbs eU3O8.

Preliminary eU3O8 radiometric results have been compiled for the final 152 of the 312 Phase 3 holes. Drilling results have identified widespread mineralization, and the following results have been selected to demonstrate some of the best results obtained during the second half of the Phase 3 drill program. Drill logs and radiometric data have been evaluated resulting in identifying additional areas for resource expansion and exploration with potential for discovery of new resources. Consequently, a Phase 4 drill program has commenced and will be reported in a separate news release. The Company intends to have a revised NI 43-101 resource estimate for the project area prepared this fall.

The Elkhorn project is located in the northeastern Powder River Basin and contains over 16,700 acres of land held under Federal, State and Fee agreements. Three uranium mines are in production in this region, including the Smith Ranch-Highland uranium project and the Crow Butte mine, owned by Cameco (Toronto:CCO.TO), and the Christensen Ranch mine, owned by Cogema, all which employ “in-situ recovery” processes to recover uranium mineralization. Operating mines are exploiting uranium mineralization that occurs in concentrations that range from approximately 0.1 – 0.3% U3O8. At the Elkhorn project, uranium mineralization occurs in the Cretaceous Fall River Formation, hosted in fluvial sandstones at depths ranging from 0 – 135 feet (41.1 m). Drilling will also evaluate potential targets within the deeper Cretaceous Lakota Formation, which hosts significant historic uranium resources at the historic Hauber mine/deposit. The Hauber mine is located 7.5 miles (12.1 km) to the southwest and was operated by Homestake Mining Corporation during the 1950′s during which time it produced an approximately 2.76 million pounds of uranium (U3O8). It is significant that the Hauber deposit, hosted in the Lakota Formation at depths of about 400 feet (122 m), has associated near surface uranium mineralization in the Fall River Formation-the host for the Busfield/Vickers/Quad mineralization. Additional drilling is planned by Bayswater on the Elkhorn Project following Phase 4 to further expand identified areas of mineralization and to test new target areas.

About Bayswater Uranium Corporation – The Super Junior(TM) Uranium Company

Bayswater Uranium Corporation is a rapidly-growing international uranium exploration and development company. As the only uranium company to have major landholdings in each of Canada’s most important producing and exploration regions — the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin — Bayswater is a leader in uranium exploration in Canada, the world’s largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to feasibility and production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior(TM) Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. To capitalize on the strong growth of the nuclear industry and to continue to add shareholder value, Bayswater plans to focus on the development of its resource properties and to evaluate early stage projects for further discoveries. Other acquisition opportunities will continue to be assessed all with a corporate vision of building a major international uranium company. Bayswater is listed on the TSX Venture Exchange under the symbol “BAY.” The Company’s website is www.bayswateruranium.com.