Reno Creek Environmental Baseline Studies On Schedule

Bayswater Uranium Corporation (TSX-V: BYU),
(OTC: BYSWF)
reports that the Company has made significant progress in its
environmental baseline studies at its Reno Creek Uranium Project in
Campbell County, Wyoming. Following are the highlights of the extensive
ongoing program:

• 
  Twenty-five of the initially planned forty-four monitoring wells have
  been completed and are operational. The balance of the wells will be
  drilled and developed early in 2011.
  
• 
  Monitoring well data has confirmed that the sandstone ore horizon is
  physically confined above and below by shale across the entire project
  area.
  
• 
  One pump test has been successfully completed and the data is being
  analyzed. The pump tests are designed to document that pumping in the
  ore body sandstone does not cause any hydrologic communication with
  the overlying and underlying aquifers and to provide hydrologic data
  that is used for the design of production and restoration operations.
  
• 
  2011 first quarter ground water samples, surface water and sediment
  samples have been collected and are in the laboratory for analysis.
  
• 
  An on-site meteorological station has been installed and a full
  quarter of data obtained.
  
• 
  Five air quality monitoring stations have been installed and a full
  quarter of data acquired.
  
• 
  Vegetation and soils mapping are nearly completed, and are expected to
  be complete in the spring of 2011.
  
• 
  Archaeological surveys have been completed. All 41 previously recorded
  cultural resource sites identified on the Reno Creek project had been
  evaluated as not eligible for the National Register of Historic Places
  (NRHP), and files indicate State Historic Preservation Office
  concurrence for all previously recorded sites. All 37 newly recorded
  localities are also evaluated as not eligible for the National
  Register.
  
• 
  Wildlife surveys are more than 80% complete. The survey documented the
  absence of sage-grouse in the entire project area, as well as the
  absence of any threatened or endangered species.
  
• 
  Wetlands mapping is more than 90% complete, and should be finished
  during the spring of 2011.
  
• 
  The baseline radiological survey, including soil and vegetation
  sampling, is 90% complete, and will be completed by summer of 2011.
  

During October 2010, the Company successfully completed its first
quarterly meetings with the Nuclear Regulatory Commission (NRC) and the
Wyoming Department of Environmental Quality (WDEQ) to provide an update
on the progress of activities, discuss initial findings of the baseline
studies, and affirm that the baseline program continues to meet the
needs of both agencies for their review of future permit applications.
The Company confirmed that it plans to submit its application to the NRC
for a Source and Byproduct Material License and its application to the
WDEQ for a mine permit by the end of 2011.

During 2010, drilling of monitoring and observation wells located both
inside and outside of known resource areas led to the following results
pertaining to the known mineralized areas and their potential expansion
on the project:

When above well drilling is completed in the first part of 2011, the
data from all monitoring and observation wells will be integrated into
the project database for additional resource evaluation. Mineralized
intercepts outside of known resource areas indicate the potential for
additional resources and are listed in the table below.

Note: PZM = Resource Host Sandstone Monitoring Well; UM = Underlying
Aquifer Sandstone Monitoring Well. All uranium mineralization as noted
above is in the known resource host sandstone.

The Company plans to carry out a more extensive drilling program during
2011, in addition to completing the environmental baseline studies and
preparation of permit applications. The drilling program, to be
permitted during the first quarter of 2011, will include a combination
of confirmation and extension drilling in selected portions of the
project?including areas of new mineralization encountered in the 2010
program, plus coring of the host sandstones in resource areas for
metallurgical and engineering testing to support the applications for
permits to the NRC and WDEQ. During 2011, the Company will develop plans
to commence drilling and environmental baseline activities in its Pine
Tree trend, which are planned to start early in 2012. Bayswater and
Pacific Road Resources Funds, our investment partner in Reno Creek, have
agreed to a budget of approximately $7.0 million for the 2011 project.
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. The Company has carefully studied
both the evolving permitting processes and the experiences of Ur-Energy,
Uranium One, Uranerz, and Powertech over the past four years, including
a detailed review of all of the Requests for Additional Information
(RAI) issued by the NRC and WDEQ and the Environmental Impact Statements
for each project. Now that licenses and permits are being granted by the
agencies, it is possible to use this information and the Company′s own
detailed discussions with the NRC and WDEQ respective staffs to assure
that its application documents contain required information. The Company
anticipates that this effort could improve the efficiency of agency
review and substantially reduce the time required for receipt of
permits. Bayswater′s previously announced schedule anticipated that it
will be in a position to commence a feasibility study in early 2013 with
construction development to follow once completed and be in production
by 2015. The Company now believes that all phases of the Project,
including the permitting time-line, may be significantly shortened.

Pursuant to the investment agreement and shareholders agreement dated
April 7, 2010 (the 'Agreements?) involving Pacific Road Resources Funds
('PRRF?) (see news release April 7, 2010), the Company was obliged to
fund the special purpose entity ('Newco?), which holds the Reno Creek
Uranium Project, with US$7,000,000 and pay certain fees to PRRF on or
before December 1, 2010. To date, such funding and payment of fees has
not occurred. On January 5, 2011, PRRF and the Company entered into an
amending agreement in respect of the Agreements whereby PRRF funded the
first quarter 2011 Newco budget in an amount of US$1,750,000 and, as a
result, the interest held by Bayswater in Newco has been reduced to
21.3% from 23.1% and the maximum interest the Company may now earn in
Newco has been reduced from 50.0% to 45.13%. The parties are proceeding
on the basis that the Company shall fund the remaining amount of the
2011 Newco budget, being US$5,250,000 plus certain fees before March 1,
2011, notwithstanding the right of PRRF to complete such funding and
convert certain fees into shares in Newco. The Company is using its best
efforts to secure such funding before March 1, 2011.

Pursuant to the Agreements as amended, PRRF continues to be entitled to
convert its investment in Newco into common shares of the Company at any
time up to six months following the later of completion of a feasibility
study or receipt of all requisite mining permits, but in any event not
later than within five years of acquisition of the Property as
previously reported. On conversion, PRRF′s investment in Newco will be
converted into common shares of the Company, pursuant to prescribed
formulas as previously described in the Company′s news release dated
March 3, 2010. At that time Bayswater will own a 100% interest in Newco
which holds the Reno Creek property.

For operational efficiencies, employees, consultants and contractors of
NCA Nuclear Inc., a wholly owned subsidiary of Bayswater, who have been
working on the Reno Creek Project, have been transferred over to AUC
LLC, the limited liability company that owns the Project and of which
the only shareholders are PRRF and Bayswater, effective January 1, 2011.
Jim Viellenave will act as Project Manager on the Reno Creek Project and
will continue as the General Manager?US Operations for Bayswater.
Bayswater has assembled a highly effective and experienced management
team for Reno Creek that will now operate directly within AUC LLC and
report to the board of AUC LLC.

In other news, the Company reports that due to permitting delays,  it has
relinquished its option to acquire an 80% interest from Uranium North
Resources in certain exploration permits and claims  located in the South
Thelon Basin of the NWT, Canada. Bayswater continues to hold varying
interests in 714 claims aggregating 1,454,510 acres in this region which
cover a number of prospective drill targets for future testing.

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 is to develop Reno Creek to production in the shortest
time frame possible. The Company′s Elkhorn/Alzada Project, located
approximately 100 miles northeast of Reno Creek, is being advanced as a
complementary or stand alone project for future potential production. As
well, Bayswater is the only uranium company to have strategic
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
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.

About Pacific Road Resources Funds and Pacific Road Capital
Management Pty Limited

The Pacific Road Resources Funds are private equity funds investing in
the global mining industry. They provide expansion and buyout capital
for mining projects, mining related infrastructure and mining services
businesses located throughout resource-rich regions of the world. The
Pacific Road Resources Funds are managed and advised by Pacific Road
Capital Management Pty Ltd ('PRCM?). The PRCM team, located in Sydney,
Australia, San Francisco and New York, USA, is comprised of experienced
mining investment professionals that have extensive knowledge and
experience in the mining and infrastructure sectors, including
considerable operating, project development, transactional and
investment banking experience. For further information on the Pacific
Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary

President

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