Bayswater Receives Drilling Permit & Commences Drilling of Monitoring Wells at Reno Creek Project, Wyoming

Bayswater Uranium Corporation (TSX-V: BYU),
(OTC: BYSWF)
reports that the Company has received approval of its Drilling
Notification permit from the Wyoming Department of Environmental Quality
and its Monitoring Well Permits from the Wyoming State Engineer′s
Office. The Company has commenced drilling and installing up to 44
baseline monitoring wells in the area of its proposed Uranium In Situ
Recovery mine and plant at the Reno Creek project. The monitoring well
network is part of the environmental baseline and is required to support
the Company′s application to obtain a Source and Byproduct Material
License from the US Nuclear Regulatory Commission (NRC) and a Permit to
Mine from the Wyoming Department of Environmental Quality (WDEQ).

Hydrologic and Water Quality Studies

The monitoring wells are designed to provide information on the
hydrology and water quality of the production zone aquifer plus
characterize the hydrology and water quality of the overlying confining
unit, the underlying confining unit, and the overlying and underlying
aquifers. The program includes selected coring of the overlying and
underlying confining units.

Seven clusters of monitoring wells are being installed across the Reno
Creek project. At each cluster, a temporary stratigraphic hole will be
drilled to the Badger/Baker Coal zone, which ranges from 600 to 700 feet
deep. The stratigraphic hole will be logged to characterize the
stratigraphy, and decisions made regarding the installation of the
monitoring wells. Monitoring wells will then be completed in the
Production Zone, the overlying aquifer, the underlying aquifer, and in
the shallow aquifer if a saturated sandstone is detected. In addition,
the Company will install Production Zone monitoring/observation wells at
varying distances from the cluster for use in the pump tests scheduled
later this year.

Water quality samples will be taken from all of the monitoring wells in
the clusters on a quarterly basis in order to characterize the four
aquifers. Following the installation of the monitoring wells, the
Company will commence its first quarter of surface and ground water
quality sampling.

Other Baseline Activities

In addition, the Company continues to implement other elements of its
baseline environmental monitoring program, including:

• 
  Identifying and measuring properties of surface water sources over the
  course of a year.
  
• 
  Measurement of meteorological and air quality parameters over the
  course of a year. This includes installation of an on-site
  meteorological station and six air quality monitors.
  
• 
  Background radiological conditions. Field surveys include background
  gamma, soil and vegetation sampling and analysis of radium, uranium
  and other radionuclides.
  
• 
  Cultural resources and archaeology.
  
• 
  Other miscellaneous baseline studies.

Upon completion of data collection, compilation and analysis for
baseline studies, the Company intends to assemble and submit its
applications to the NRC and the WDEQ. In accordance with the project
schedule as previously announced, Bayswater anticipates that it will be
in a position to commence a feasibility study by 2013 with construction
development to follow once completed and be in production by 2015.

About Bayswater Uranium Corporation - The Super Junior Uranium Company
^TM

Bayswater Uranium Corporation is an international uranium exploration
and development company. The Company owns several advanced uranium
properties in the United States with significant NI 43-101 compliant and
historical resources that may be amenable to ISR and/or conventional
mining. With the acquisition of the Reno Creek Property, WY, the
Company′s focus will be on putting Reno Creek into production in the
shortest time frame possible. The Company′s Elkhorn/Alzada Project,
located approximately 100 miles northeast of Reno Creek, is planned as a
pipeline project for US production. As well, Bayswater is 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 combines a
balanced portfolio of advanced and exploration projects with the uranium
expertise of its technical and managerial teams. To capitalize on
current market conditions and strong growth of the nuclear industry, the
Company will continue to pursue acquisition opportunities of
advanced-stage uranium projects with mid-term production potential.
Bayswater's vision is to build a major international uranium company.
Shares of the Company are listed on the TSX Venture Exchange under the
symbol 'BYU?.
For further information visit www.bayswateruranium.com.

On behalf of the Board of:

Statements in this news release other than purely historical
information, including statements relating to the Company′s future plans
and objectives or expected results, constitute forward-looking
statements.Forward-looking statements are based on numerous
assumptions and are subject to all of the risks and uncertainties
inherent in the Company′s business, including risks inherent in mineral
exploration, development and mining.There can be no assurance
that such forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements.Accordingly, readers should not
place undue reliance on such statements.The Company does not
undertake to update any forward-looking statements that are incorporated
by reference herein, except in accordance with applicable securities
laws.Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.

Bayswater Uranium Corporation

John Gomez, 604-687-2153

Manager,
Investor Relations

www.bayswateruranium.com