Bayswater Uranium Corporation - Labrador Central Mineral Belt Uranium

HIGHLIGHTS AND CURRENT EXPLORATION

2,376 sq. km. land package in the Central Mineral Belt with IOCG-Olympic Dam and Rossing-style Uranium deposit targets
Properties contain favourable geological structures, intrusive bodies and extensions to known deposits and prospects
Drilling at the Anna Lake prospect had identified a major uranium discovery that includes 40 meters grading 0.07% U308

2007 Drill Program
Bayswater began a drill program at its Central Mineral Belt property in July 2007. To date, 62 diamond drill holes totalling approximately 13,000 meters have been completed on high priority targets identified by the 2006 exploration program.

At the Anna Lake prospect, uranium assays have been received for 28 of 33 holes, with additional results pending laboratory analysis. Drill results include an intersection in hole AL07-01 grading 0.07% U3O8 over 40.0 meters including 0.12% U3O8 over 5 meters and 0.15% U3O8 over 6.0 meters (see News Release dated October 29, 2007 for more information).

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Two drill rigs will continue at the Anna Lake target until mid-November and drilling will resume once again in early spring of 2008.

LOCATION AND INFRASTRUCTURE

The Central Mineral Belt district runs for more than 250 km through south-central Labrador, on the eastern edge of Canada. With numerous uranium, copper and rare earth element showings and prospects, the Belt has recently become a hotspot for uranium exploration in Canada. Bayswater has acquired the largest land position in the district, with a 100% interest or rights to a 100% interest in 15,855 mineral claims. This is equivalent to 2,376 sq. km. (nearly 1 million acres) of land which is more than three times the position of any other company active in the area.

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The Company's claims and interests are largely within Labrador Inuit Land Settlement Agreement (LILSA) areas that are administered by the Government of Newfoundland and Labrador. This region welcomes exploration and development of resources.

The project area is located approximately 40 km to 100 km from Postville, a town of approximately 250 people. The vast property is flat-lying and sits at approximately 300m above mean sea level.

Access to the project is by fixed wing aircraft or helicopter from Postville. Supplies and heavy equipment is brought to the community by barge from St. John's, Newfoundland. The community provides the project with housing, supplies, fuel and internet access. In addition, there is a small but able work force whose members have experience in exploration through the various junior companies active in the area, as well as through the Voisey's Bay Nickel Mine.

In July 2007, Bayswater entered into joint venture agreements to expand its exploration interest in the Central Mineral Belt to the Makkovik River and Stipec River regions. These areas represent attractive uranium targets that will be further explored in 2007. The Company's total interests in the Labrador Central Mineral Belt is 18,507 claims representing 4626 sq. km or 1,143,254 acres.

EXPLORATION HISTORY AND MINERAL POTENTIAL

The Central Mineral Belt, (CMB) is a belt of volcanic, plutonic and sedimentary rocks hosting a significant number of uranium and base metal occurrences. Exploration for uranium and base metals in the Central Mineral Belt started in 1955 and continued on and off until the late 1970's. In 1993 the Geological Survey of Canada completed a detailed lake sediment and water sampling survey program that revealed significant uranium, silver, copper and iron anomalies.

Exploration reactivated in earnest in the early 2000's with the surge in Uranium prices and several companies are now active in the area and making discoveries. The most advanced project is Aurora Energy's Michelin iron-oxide/copper/gold (IOCG) "Olympic-Dam style" deposit with Measured and Indicated Resource of 22.2 million pounds with an additional Inferred Resource of 13.4 million pounds U₃O₈ (ref: www.aurora-energy.ca ). This deposit sits approximately five km from Bayswater's Southeast Claim block and Aurora's airborne radiometric surveys have shown anomalies which may extend onto Bayswater ground. Further to the south, the Moran Lake deposit being explored by Crosshair contains an Inferred Resource of 124,000 tonnes at a grade of 0.25% U₃O₈ or approximately 688,000 pounds of U₃O₈ (ref: www.crosshairexploration.com ). There is a magnetically and radiometrically favourable belt of rocks found on the Moran Lake property which is believed to extend on Bayswater ground for as much as 30 km. This postulated extension is supported by the existence on Bayswater property of favourable major fault structures, rock units, widespread base and precious metal occurrences, uranium occurrences and common anomalous scintillometer counts.

PROPERTY GEOLOGY AND GEOPHYSICS

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Bayswater's large land holdings are divided into four main blocks labeled Northwest, North, Southwest and Southeast. The area of the Northwest Block is underlain by rocks more than 2.5 billion years old, including granite-like rock types and lesser amounts of volcanic rocks. Underlain mainly by slightly younger intrusive rocks, some metamorphosed, the North Block area also has its western boundary straddled by a major shear zone. The Southwest and Southeast Block are underlain by similarly aged rocks as well as an extensive terrain of slightly older granite-like intrusives. In particular, the "Aillik Group" consists of an approximately 5,000 m thick assemblage of metasmorphosed sedimentary and volcanic rocks, subvolcanic intrusives and dikes. This group of rocks hosts most of the uranium, copper, zinc, lead, and molybdenum occurrences in the region. Uranium bearing horizons and veins are genetically related to the east-northeast trending units, and faults with similar orientation, implying that the faults have acted as conduits for mineralizing solutions along structures.

Regional airborne magnetic survey data indicate that the western part of the Northwest Block is cut by a north-northwest trending magnetic low, whereas the remaining part of the block, as well as the North, Southwest, and Southeast blocks are underlain by rocks with moderate to high magnetic susceptibilities.

In the summer of 2006 Bayswater completed a 41,000 km airborne radiometric and magnetic survey. Numerous radiometric anomalies were generated from the survey and 80 high priority targets for IOCG and Rossing type uranium deposits were selected for follow-up prospecting this. Follow-up prospecting by a crew of 8 prospectors and 2 geologists with helicopter support on these radiometric targets led to the discovery of several uranium mineralized zones and other radioactive zones of interest with potentially significant uranium mineralization such that the company had 12 uranium prospects/targets and 1 light rare earth element mineralized area of interest.

In July 2007, the Company began to drill several of the high priority targets outlined in the 2006 airborne radiometric and magnetic survey of the properties. To date, 62 diamond drill holes totalling approximately 13,000 meters of core recovery have been completed Results have been received for 40 of the holes with the rest pending laboratory analysis.

MINERALIZATION

Exploration targets on Bayswater ground are both the large, low grade IOCG-Olympic Dam and granite-hosted Rossing type uranium deposits. A data review for Bayswater's claims revealed a multitude of indicators for uranium mineralization in both settings, including:

Moran Lake Belt IOCG Target

Outcrop and boulder samples up 2.38% U₃O₈. Copper, lead, zinc, gold and silver occurrences and prospects traced for 30 km along strike. Values of up to 1.46% copper in outcrop, 17.87% zinc and 7.4% lead over 0.9 metres in a drill hole, 5.15 g/t gold in outcrop and 0.73 oz/t silver over 1.2 metres in a drill hole have been noted.

Anna Lake Area IOCG Target

A 1.2 km long boulder train containing over 2000 radioactive granite and gneissic boulders with values up to 3.05% U₃O₈.

McGrath Lake Area Rossing Target

Widespread highly anomalous lake samples from with values of up to 2020 ppm (0.202%) uranium in lake sediments and up to 1.79 ppb uranium in lake waters. Part of the southern portion of a 22 km by 42 km oval ring-shaped anomalous pattern associated with the margins of a large intrusive rock body. This body is characterized by a magnetic anomaly with associated anomalous uranium copper, iron, silver and light rare earth elements lake sediment samples.

Northwest Claim Block

Numerous uranium anomalies in lake sediments and waters, soils, stream sediments and rocks. Additional anomalies exist for copper, nickel, iron, molybdenum and silver.

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Discovery of Possible Kimberlite Pipes

Airborne magnetic data from surveys completed in 2006 have also revealed a large cluster of circular magnetic highs which potentially could represent kimberlite pipes. Kimberlite is the primary host rock for diamonds.

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