Drilling at Reno Creek Uranium Project, Wyoming Shows Positive Results

Bayswater Uranium Corporation (TSX-V: BYU),
(Pink Sheets: BYSWF)
is pleased toreport that AUC LLC ('AUC?), an affiliate that
holds the Reno Creek properties and is Operator of the Reno Creek
Uranium Project, has made significant progress on its 2011 delineation
drilling program and environmental baseline studies at Reno Creek
located in Campbell County, Wyoming. In addition, AUC continues to be on
schedule to submit its applications to the National Regulatory
Commission ('NRC?) for a Source Materials License and to the Wyoming
Department of Environmental Quality ('WDEQ?) for a Permit to Mine
uranium at the Reno Creek site. Following are the highlights of the
extensive ongoing program.

AUC has completed the first 67 holes of the planned 2011 350 hole
drilling program; and in addition, AUC is on schedule to complete
environmental baseline studies in 2011. The drilling program includes a
combination of confirmation and step-out drilling in the southwestern
portions of the project area plus coring of the host sandstones for
metallurgical and engineering testing to support the applications for
permits to the NRC and WDEQ.

Sixty-seven holes have been completed, including three core holes and
two re-entries of historical holes, for a total of about 24,000 feet at
SW Reno Creek. The historical holes were cleaned out to total depth
previously drilled, re-logged, and then plugged and reclaimed in
accordance with WDEQ regulations. The re-entries are designed to verify
historical data, and to assess the condition of historical drill hole
plugging activities. The current logging of these two holes compared
favorably to and confirmed the historical data. Both holes were found to
be sealed throughout the entire saturated section, thus maintaining the
hydrologic seal through the full reach of the overlying aquitard.
Results of sub-regional hydrologic pumping tests conducted early this
year in the same area of these historic boreholes also confirmed the
hydraulic continuity of the effective overlying aquitard seal.

Highlights from the first 67 holes drilled during 2011, are as follows:

• 
  Drilling confirmed the results of previous historical drilling in two
  holes;
  
• 
  Drilling identified additional mineralization along extensions of
  known resources by stepping out from the historical edge of open areas
  of mineralization that could potentially add to the resource base for
  the project; and
  
• 
  Drilling defined significant uranium intercepts utilizing cutoff
  grades of greater than or equal to 0.03% eU3O8 and grade-thickness
  values of 0.30 as highlighted in the table below from the first 67
  holes drilled.
  

In addition, AUC′s 2011 environmental baseline studies have resulted in
the following important preliminary findings that relate directly to
amenability of the Reno Creek Project to ISR mining:

• 
  Delineation drill hole and monitoring well data confirmed that the
  mineralized sandstone horizon is physically confined above and below
  by a low permeability shale or mudstone across the entire project area.
  
• 
  A second pump test has been successfully completed. The data from the
  first two pump tests document that the hydrologic conditions such as
  permeability and transmissivity are within the normal operating ranges
  exhibited at existing commercial ISR production facilities in Wyoming.
  In addition, the data document that there is no hydrologic
  communication between the mineralized sandstone and the underlying and
  overlying aquifers in the area of the pump testing. This finding also
  confirms that there is no evidence of hydrologic leakage or
  communication through historical drill holes.
  

During February and May of 2011, AUC successfully completed its second
and third quarterly meetings with the Nuclear Regulatory Commission
(NRC) and the Wyoming Department of Environmental Quality (WDEQ),
respectively, to provide an update on the progress of activities,
discuss ongoing 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.

Upon completion of data collection, compilation and analysis for
baseline studies, AUC intends to assemble and submit its applications to
the NRC and the WDEQ. AUC has carefully studied both the evolving
permitting processes and the experiences of Ur-Energy (TSX: URE),
Uranium One (TSX: UUU),
Uranerz (AMEX: URZ),
and Powertech (TSX: PWE)
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 AUC′s own detailed discussions with the NRC and
WDEQ respective staff to assure that its application documents contain
the required information. AUC anticipates that this effort could improve
the efficiency of agency review and could substantially reduce the time
required for receipt of permits. Bayswater′s previously announced
schedule, anticipated that AUC would 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. AUC now believes that all
phases of the Project, including the permitting time-line, may be
shortened.

Bayswater and Pacific Road Resources Funds ('PRRF?) are developing the
Reno Creek Uranium Project through Reno Creek Holdings Inc. ('RCHI?),
which holds the Project through RCHI′s wholly owned subsidiary AUC.
Bayswater currently has a 17.27% interest in RCHI that may be increased
to 31.14%. PRRF is entitled to convert its investment in RCHI into
common shares of Bayswater 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 PRRF shall convert its investment not
later than within five years of acquisition of the Project, provided
certain conditions are met. Upon conversion of PRRF′s investment,
Bayswater will own a 100% interest in RCHI which holds the Reno Creek
property. Currently, James Viellenave, President of AUC is the Project
Manager and reports to the board of AUC in regards of all activities
conducted on the Reno Creek project. Two representatives from each of
PRRF and Bayswater comprise the board of AUC, with PRRF holding a
majority interest in AUC.

In other news, Bayswater reports that it has acquired by staking
strategic ground covering a potential extension to its Anna Lake uranium
deposit, Labrador. Also, Bayswater reports that Cascade Resources Ltd.
have declined to close the acquisition of its uranium concessions in
Niger, West Africa and as a result Bayswater has terminated its interest
in the concessions.

The Company′s exploration activities are conducted under the supervision
of George M. Leary, M.Sc. P. Eng. (B.C.), President of the Company, and
Victor Tanaka, B.Sc. P.Geo. (B.C.), Executive VP and Chief Operating
Officer of the Company. Both are Qualified Persons under NI 43-101.
George Leary is the qualified person responsible for the technical
information in this news release.

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

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