BAYSWATER URANIUM CORPORATION

510 Burrard Street, Suite 510
Vancouver, B.C. V6C 3A8
Tel:  (604) 687-2153
www.bayswateruranium.com

NEWS RELEASE

Bayswater Announces Results from Phase 4 Drilling at Elkhorn Project, Wyoming

Encounters 16.5 ft (5.0 m) grading 0.04% eU3O8 at Busfield; 6.0 ft (1.8 m) grading 0.08% eU3O8 at Quad; 4.0 ft (1.2 m) grading 0.08% eU3O8 at Clover; and 11.0 ft (3.4 m) grading 0.071% eU3O8 at Tract 41.

Vancouver, BC, March 3, 2009 � Bayswater Uranium Corporation (TSX-V: BAY), (OTC: BYSWF) is pleased to announce results from 177 holes, including 28 core holes and 149 rotary holes, from the Phase 4 drilling program carried out during the fall of 2008 at the Elkhorn Project in Wyoming.  The Company previously reported the results from Phase 3 drilling carried out in the spring of 2008 on May 20 and August 7, 2008.  Phase 3 drilling comprised 312 holes, including 11,071 meters (36,321 feet) around the historical Busfield Mine and the Company's related NI 43-101 compliant resource area of 397,000 lbs U3O8 indicated in 250,000 short tons grading 0.08% eU3O8.    

Phase 4 resource drilling was designed to obtain further definition of the Busfield resource area which remained open in several directions and to test for potential expansion of the Vickers historical resource area, comprising 24,568 lbs U3O8 in 14,672 short tons grading 0.084% U3O8 that is not compliant with NI 43-101 and is not to be relied upon, which together are part of a 4,000 foot (1,220 m) long trend of near-surface, sandstone hosted uranium mineralization.  Exploration drilling in the Busfield area also involved step out drill hole fences of up to 1/2 mile from know resources along trend to test for potential continuity of the shallow resource areas. 

Additional resource definition holes were also drilled at the Quad and Clover historical resource areas, located respectively 6,200 feet (1,890 m) and 2,200 feet (670 m) southwest of the Busfield resource area and former open pit mine.  Reported historical resources, not compliant with NI 43-101 and not to be relied upon, of these two areas are respectively 50,839 lbs U3O8 in 16,669 short tons grading 0.153% U3O8 and 33,508 lbs U3O8 in 14,256 short tons grading 0.118% U3O8.

The Company also drilled twelve confirmation holes at the North Elkhorn (Tract 41) area, testing deeper, potentially ISR recoverable uranium targets in the Lakota formation.  Historical resources at Tract 41, not compliant with NI 43-101 and not to be relied upon, drilled by Federal Resources in the 1970s are reported at 104,457 lbs U308 in 50,656 short tons grading 0.103% U3O8. 

In addition to the above drilling, local deeper holes were drilled to test the Lakota Formation, the main uranium host of the former producing Hauber Mine located about 5 miles to the west of the Busfield/Vickers project area.

Resource definition drill holes were located generally on 100 foot (30.5 meter) spaced lines, with 100 feet (30.5 meters) between holes on average, to confirm and expand the Busfield/Vickers, Clover, and Quad resources.  At the Tract 41 resource area, the drill pattern was designed to confirm key historical drilling results from the 1970s. 

Equivalent (eU3O8) radiometric results have been compiled for all drill holes and a comparison study is being undertaken to compare results from chemical assays from drill core and rotary holes with radiometric results.

The following results, based on a minimum 1.8 meter (6 feet) width and 0.02% eU3O8 cutoff, have been selected to demonstrate some of the best results obtained during the Phase 4 drill program.

Note:  All U3O8 values are equivalent (radiometric) from bore hole gamma ray logging

Results of the above drilling program have identified areas of expansion of the previously known mineralization in the Busfield/Vickers, Clover, and Quad areas.  The shallow mineralization at Busfield/Vickers and Quad mine areas has now been successfully delineated.  Preliminary indications are that the shallow Fall River resource at Busfield is substantially larger than the 397,000 pounds of U3O8 reported in the 43-101 dated April 18, 2007.  The Fall River resource appears to be surface mineable at a reasonable strip ratio under conditions that would allow reclamation to a status very similar to the present day.  Mineralization in the Clover block is still open and there are nearby areas that warrant additional testing. 

At Tract 41, the twelve confirmation holes found that uranium mineralization is hosted in at least four vertically-stacked sandy horizons located between depths of 190 and 375 feet (58-114 m) below surface in the Fall River and Lakota Formations.  The radioactive intervals range in thickness from 0.5 ft to 21 ft (0.05 - 6.4 m) with average grades ranging from a cut off of 0.02% up to a high of 0.10% eU3O8.  Drilling indicates that the second radioactive horizon intercepted (Zone 2), hosted in the Lakota Formation, is the most laterally continuous of the four horizons and appears to correspond to the horizon from which the above stated historical resources were estimated by Federal Resources Corporation in 1972.  All of the uranium-bearing horizons at Tract 41 occur beneath the permanent water table and are primarily composed of porous and permeable sandstone, thus making the deposit potentially amenable to solution mining techniques.  Confirmation of the additional uranium bearing sandstones suggests the potential to significantly expand the Tract 41 resource beyond the amounts historically indicated.  Further drilling is required to evaluate this target.

Deeper holes to test the Lakota Fm in the area of the Busfield, Vickers, Quad and Clover deposits failed to intersect significant mineralization but several anomalous zones were detected that indicate the favourability of the formation for hosting uranium roll fronts in the vicinity of the more shallow Fall River Formation that hosts all the above deposits except for Tract 41. The data generated by the Company in its deeper Lakota formation testing, combined with recently acquired historical databases, suggests excellent opportunities to explore for additional Hauber-type deposits between the former Hauber mine and the Tract 41 resource area. 

QA/QC:  All drill holes were logged using down-hole gamma radiation sensing equipment to determine the equivalent uranium content of the rocks, reported as eU3O8.  Intercepts were calculated, using a minimum width of 1.8 meters (6 feet) and a cut-off of 0.02% eU3O8.   Radiometric data was collected on 0.1 feet intervals (0.0030 meters) and converted to equivalent uranium content.  Split core samples have been prepared from the core holes that were 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.  All work was conducted through Bayswater's subsidiary, NCA Nuclear Inc., under the direction of George Leary for the Company, who is the qualified person under NI 43-101 responsible for the technical information in this news release.  Pinyon Environmental Services of Denver Colorado has been retained to obtain all drilling permits, and to manage all environmental and drilling operations.  Drilling was conducted by Arrow Drilling of Arvada Colorado.  Century Geophysical, of Tulsa Oklahoma, provided Phase 4 down-hole radiometric logging services.

About the Elkhorn Project

The Elkhorn project is one of six uranium projects that Bayswater holds on the western flanks of the Black Hills uplift and eastern Powder River Basin.  The Busfield and Vickers mines produced approximately 69,000 pounds of uranium from near-surface, sandstone hosted deposits that were operated in 1956-57.  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% to 0.3% U3O8.  In the Elkhorn region, uranium mineralization occurs in the Cretaceous Fall River Formation, hosted in fluvial sandstones at depths ranging from 0 - 135 feet (41.1 m) and also within the deeper Cretaceous Lakota Formation, which hosted the former producing Hauber mine.  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 an 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 and Clover mineralization. 

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

Bayswater Uranium Corporation is an 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 where drilling has identified deposits that may be amenable to ISR and/or conventional mining.  Bayswater combines a balanced portfolio of development and exploration projects with the uranium expertise of its technical and managerial teams.  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 "BAY".   For further information visit www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary

President

For further information contact:

John Gomez

Manager, Investor Relations

Telephone: (604) 687-2153

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