Bayswater Expands Drilling Program at Elkhorn Project, Wyoming

164 Hole Program Has Commenced Following Positive Results From Earlier 312 Hole Program That Significantly Expanded Resource Areas

VANCOUVER, BC–(EMWNews – August 11, 2008) – Bayswater Uranium Corporation (TSX-V: BAY)

(PINKSHEETS: BYSWF) is pleased to announce the start of the Phase 4

drilling program at the Company’s 100% owned Elkhorn Project in northeast

Wyoming. The Phase 4 program is planned to include about 16,300 feet (4968

m) in 127 resource drill holes and 6500 feet (1981 m) in 37 exploration

holes. The main objective of the drilling program is to define and further

expand uranium mineralization in the Busfield and Vickers mine areas, as

well as at the historic Quad and Clover regions to increase resources in

preparation for completing a revised NI 43-101 resource estimate for the

project area.

The Company completed Phases 1 and 2 drilling programs at the Busfield

resource area in 2006 which led to definition a NI 43-101 compliant

indicated uranium resource of 250,000 tonnes at 0.08 % U3O8 for 397,000 lbs

eU3O8. Also, on May 20th, 2008, the Company announced successful

completion and positive preliminary results from a 312 drill hole Phase 3

drilling program that was focused on expanding resources at the Busfield

deposit and evaluating the historic Vickers mine area. Preliminary results

from 160 of the 312 holes drilled, as reported on May 20, 2008, and from

the balance of 152 holes drilled, as announced in a news release on August

7, 2008, indicate the resource area has been significantly expanded and

remains open in several areas. Accordingly, a 164 drill hole Phase 4

program has recently commenced that will incorporate three elements

— i) testing of areas for further potential expansion of resources, ii)

step out exploratory holes to locate areas for future potential resource

definition and iii) confirmation drilling of historical resources at Tract

41.

Further results from the Phase 3 drilling will be announced once fully

compiled and evaluated

— however, local holes drilled to test the deeper, favourable Lakota

Formation — the host of the former producing Hauber Mine to west of the

drill area, have successfully delineated the general trend of a staked roll

front in this formation below the Busfield/Vickers resource area.

Phase 4 resource drilling will focus on further definition of the

Busfield/Vickers resource area, which remains open in several directions

and which together are part of a 4000 foot (1220 m) long trend of

near-surface, sandstone hosted uranium mineralization. Exploration

drilling in the Busfield area will involve step out drill hole fences of up

to 1/2 mile away along trend to test for potential continuity of the

shallow resource areas.

Also, additional resource definition holes will be drilled at the Quad

historic resource area, located 6200 feet (1890 m) southwest of the

Busfield resource area and former open pit mine; and additional holes will

be drilled at the Clover resource area, located approximately 2200 feet

(670 m) southwest of the Busfield open pit mine, in order to potentially

expand the mineralized area.

The Company will also test the deeper, favourable Lakota Formation roll

front, referred to above, in a limited step out to the west of the Vickers

and Quad project areas. The Company will also drill additional

confirmation holes at the North Elkhorn (Tract 41) area, testing deeper,

potentially ISR recoverable uranium targets in the Lakota formation.

Historical resources, not compliant with NI 43-101 and drilled by Federal

Resources in the 1970s, indicate 104,000 pounds of eU308 at Tract 41.

QA/QC: All drill holes will be logged using down-hole gamma radiation

sensing equipment to determine the equivalent uranium content of the rocks,

reported as U3O8 (eU3O8). Intercepts will be calculated, using a minimum

width of 6 feet (1.8 meters) and a cut-off of 0.02% eU3O8. Radiometric data

will be collected on 0.1 foot intervals (0.03 meters) and converted to

equivalent uranium content. Split core samples will be prepared from the

core holes drilled, and the geochemical results from the core samples will

be reported and compared with the radiometric data to determine the

equilibrium factor of the radiometric data. Pinyon Environmental Services

of Denver Colorado was retained to obtain all drilling permits. All work

will be conducted in a manner to provide low-impact access road and site

construction for all drill holes. Drilling will be conducted by Arrow

Drilling of Arvada Colorado, using one rotary drill and one core drill.

Century Geophysical of Tulsa, Oklahoma has been contracted to provide

down-hole radiometric logging services. All drilling will be dependent

upon weather conditions, and the company will seek to minimize the amount

of ground disturbance at all times.

The Company’s exploration activities are conducted under the supervision of

George M. Leary, M.Sc. P. Eng. (BC), President of the Company, and Victor

Tanaka, B.Sc. P.Geo. (B.C.), 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 the Elkhorn Project

The Elkhorn project is one of nine uranium projects that Bayswater is

exploring on the western flanks of the Black Hills uplift and eastern

Powder River Basin. The Elkhorn project comprises over 16,700 acres of

land held under Federal, State and Fee agreements. Three uranium mines are

in production in this region, including the Smith Ranch-Highland uranium

project and the Crow Butte mine, owned by Cameco, and the Christensen Ranch

mine, owned by Cogema, all which employ “in-situ recovery” processes to

recover uranium mineralization. Operating mines are exploiting uranium

mineralization that occurs in concentrations that range from approximately

0.1 – 0.3% U3O8. At the Elkhorn project, uranium mineralization occurs in

the Cretaceous Fall River Formation, hosted in fluvial sandstones at depths

ranging from 0 – 135 feet (41.1 m). Drilling will also evaluate potential

targets within the deeper Cretaceous Lakota Formation, which hosts

significant historic uranium resources at the historic Hauber mine/deposit.

The Hauber mine is located 7.5 miles (12.1 km) to the southwest and was

operated by Homestake Mining Corporation during the 1950’s during which

time it produced approximately 2.76 million pounds of uranium (U3O8). It

is significant that the Hauber deposit, hosted in the Lakota Formation at

depths of about 400 feet (122 m), has associated near surface uranium

mineralization in the Fall River Formation-the host for the

Busfield/Vickers/Quad mineralization. Additional drilling is planned by

Bayswater on the Elkhorn Project following Phase 4 to further expand

identified areas of mineralization and to test new target areas.

About Bayswater Uranium Corporation – The Super Junior™ Uranium Company

Bayswater Uranium Corporation 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

exploration 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 feasibility and 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. To capitalize on the strong growth of the nuclear industry and

to continue to add shareholder value, Bayswater plans to focus on the

development of its resource properties and to evaluate early stage projects

for further discoveries. Other acquisition opportunities will continue to

be assessed all with a corporate vision of building a major international

uranium company. Bayswater is listed on the TSX Venture Exchange under the

symbol “BAY.” The Company’s website is www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION



George M. Leary

President and CEO

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this news release.

For further information contact: John Gomez Manager, Investor Relations Telephone: (604) 687-2153