Bayswater & Silver Spruce/Universal Uranium Joint Venture Claims Covering a Portion of & Adjoining the Stipec River Uranium Trend of Bayswater in the Historic Central Mineral Belt Uranium District, Labrador
Vancouver, BC, August 3, 2007 ─ Bayswater Uranium Corporation (TSX-V: BAY) is pleased to announce it has entered into a letter agreement dated July 20, 2007 with Silver Spruce Resources Inc. (TSX.V: SSE )(“Silver Spruce”) and Universal Uranium Ltd. (TSX.V: UUL) (“Universal”), whereby Bayswater has been granted an option to acquire a 50% interest in 34 mineral claims (8.5 sq km or 2100 acres) located in the Central Mineral Belt region of Labrador, Newfoundland (the “Property”), which is currently held 50% by Silver Spruce and 50% by Universal. Pursuant to the Letter Agreement, Bayswater is obligated to issue to Silver Spruce and Universal an aggregate of 200,000 common shares (of which 100,000 shares will be issued to Silver Spruce and 100,000 shares will be issued to Universal) and expend $100,000 upon the Property by July 31, 2008.
Upon issuing the shares and making the required expenditures, Bayswater will be deemed to have exercised its option and acquired a 50% interest in the Property, with Universal and Silver Spruce each holding a 25% interest in the Property and a joint venture will be formed between the parties of which Bayswater shall be the operator.
The agreement is subject to the approval of the TSX Venture Exchange, and the shares payable under the Agreement, when issued, will be subject to a four month hold period.
Bayswater has recently completed an airborne EM and magnetic survey over the Stipec River Joint Venture lands and is planning further prospecting, rock and soil sampling and possibly drilling of favourable targets this year. In a news release dated July 12, 2007, the Company reported that: “The EM survey identified a 12 kilometre long southwesterly trending conductive zone coincident with the Stipec River trend of uranium prospects (Zone A, B, C, D and E). Numerous surface grab samples in 2006 from various prospects along this trend commonly assayed 0.1% to 0.4% U3O8.” This favourable conductive zone occurs partly on the Stipec River Joint Venture land; however, the bulk of the favourable zone and all known uranium prospects are on claims in which Bayswater has a right to acquire a 100% interest from Longview Capital Partners Inc. (TSX-V: LV), under an option agreement. To date 9 drill holes have been completed on the Stipec River Zone A and E Prospects on land subject to the Bayswater/Longview option. Assay results are pending from a number of radioactive zones identified in drill core from this drilling.
These additional Stipec River Joint Venture claims as above, plus the 829 claims (207 sq km or 51,210 acres) announced August 1, 2007 subject to the Makkovik River Joint Venture with Ucore Uranium Inc. (TSX-V: UCU) along the eastern extension of the historic Labrador uranium district, bring Bayswater’s total land interests in the Labrador Central Mineral Belt to 18,507 claims (4626 sq km or 1,143,254 acres), the largest landholder in the region.
About the Labrador Central Mineral BeltThe Central Mineral Belt of Labrador, Canada, located approximately 135 kilometres north of Goose Bay, has a long history of uranium and base metals exploration. Uranium was first discovered in the belt in the 1950’s. With further exploration in the 1960’s and 1970’s and rising uranium prices, exploration in the region increased significantly and several uranium deposits were discovered including the Kitts, Michelin, Inda, Nash, Rainbow and Moran Lake deposits by Brinco. Today, exploration activity in the region is highlighted by resource drilling at the Michelin and Jacques Lake deposits by Aurora Energy Resources Inc. (TSX: AXU), and at the Moran Lake deposit by Crosshair Exploration & Mining Corp. (TSX-V: CXX). Collectively nearly 100 million pounds of NI 43-101 compliant uranium resources has been reported in the Central Mineral Belt by Aurora and Crosshair, a figure that is expected to increase significantly in the coming years through increases to existing resources as well as new uranium discoveries. Bayswater Uranium—the largest landholder in the Central Mineral Belt—has interests in 4626 sq km of strategic land holdings; whereas, Aurora controls about 800 sq km and Crosshair approximately 640 sq km. Bayswater is aggressively pursing uranium targets within its landholdings with the objective of discovery of new uranium resources.
About Bayswater Uranium Corporation – The Super Junior™ Uranium Company
Bayswater Uranium Corp. 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 exploraUtion 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 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™ Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. Bayswater is listed on the TSX Venture Exchange under the symbol BAY.On behalf of the Board of:
BAYSWATER URANIUM CORPORATION
| George M. Leary |
| President and CEO |
For further information contact:
| John Gomez Manager, Investor Relations |
| Telephone: (604) 687-2153 |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
