Bayswater Starts Drilling for Uranium in Central Mineral Belt, Labrador

Other uranium prospects and radiometric anomalous targets are being further explored and evaluated for drill testing, including a recent discovery by Bayswater prospectors of a new uranium showing within the Company�s land holdings northeast of Anna Lake, in this round of drilling.  Based on results of our first phase of drilling and ongoing evaluation of numerous airborne radiometric targets requiring further work, an additional 10,000 metres of drilling is tentatively planned as a second phase, bringing our total to 20,000 metres of drilling this year in the Central Mineral Belt, one of the larger exploration drill programs in the region.

In addition, an exploration program of prospecting, rock and soil sampling, mapping and ground geophysical surveys is being undertaken to evaluate numerous uranium targets of interest and to follow-up results of a recently completed 5,700 line km airborne electromagnetic (EM) geophysical survey. The EM survey identified a 12 kilometre long southwesterly trending conductive zone coincident with the Stipec River trend of uranium prospects (Zone A, B, C, D and E). Numerous surface grab samples in 2006 from various prospects along this trend commonly assayed 0.04% to 0.4% U3O8. Drilling is underway to test this target. The EM survey also identified a number of other favourable conductive targets that are being further assessed and evaluated.

The Anna Lake prospect is characterized by an extensive radioactive boulder train with 11 grab samples, taken from over 2000 radioactive gossanous garnet-biotite schist boulders, that assayed 0.132% to 3.05% U3O8 (samples were taken by both Brinco in the 1970�s and Bayswater in 2006). Boulders are typically angular to sub-rounded and indicate a proximal bedrock source area. The boulder train occurs along the southeast margin of a NE-SW trending linear, narrow magnetic high in association with a radiometric anomaly. Limited drilling by Brinco in the 1970�s at one potential source area of the boulders returned 0.118% U3O8 over 1.5 metres and 0.10 % U3O8 over 2.0 metres respectively in two separate, closely spaced drill holes. Mineralized boulders are typically gossanous and show evidence of appreciable original sulphide content, including pyrite. An induced polarization survey is currently underway by Bayswater to evaluate the distribution of potential sulphidic zones in the Anna Lake target area. Initial results from this survey have been very encouraging with several anomalous chargeable zones identified. One highly chargeable anomaly traced for over 700 metres and open along strike occurs adjacent to the above holes drilled by Brinco. This target is currently being drill tested by Bayswater.

Both the Stipec River trend of prospects, located about half way between the Michelin deposit to the east and the Moran Lake deposit to the west, and the Anna Lake prospect, located about 10 km west of the Melody Hill prospect of Aurora, are located along the northern margin of the historic uranium district in the Central Mineral Belt of Labrador.  Data sets from both the airborne EM survey, completed, and ground geophysical surveys, currently underway, are being reviewed, processed and evaluated in order to assist in selecting drill targets and prospecting follow-up targets.

The Company is also pleased to report that it has been approved for Junior Exploration Assistance under the Mineral Incentive Program in the Province of Newfoundland & Labrador in respect to a government contribution towards the cost of drilling on the Anna Lake prospect.

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 Labrador Central Mineral Belt