Bayswater Expands Drilling Program at Elkhorn Project

VANCOUVER, BC - Bayswater Uranium Corporation reported 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 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 and from the balance of 152 holes drilled 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.
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.