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Bayswater & Silver Spruce/Universal Uranium Joint Venture Claims
Covering a Portion of & Adjoining the Stipec River Uranium Trend
of Bayswater in the Historic Central Mineral Belt Uranium
District, Labrador
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Vancouver, BC, August 3, 2007 - Bayswater Uranium Corporation (TSX-V:
BAY) is pleased to announce it has entered into a letter agreement
dated July 20, 2007 with Silver Spruce Resources Inc. (TSX.V:
SSE)("Silver Spruce") and Universal Uranium Ltd. (TSX.V: UUL)
("Universal"), whereby Bayswater has been granted an option to acquire
a 50% interest in 34 mineral claims (8.5 sq km or 2100 acres) located
in the Central Mineral Belt region of Labrador, Newfoundland (the
"Property"), which is currently held 50% by Silver Spruce and 50% by
Universal. Pursuant to the Letter Agreement, Bayswater is obligated to
issue to Silver Spruce and Universal an aggregate of 200,000 common
shares (of which 100,000 shares will be issued to Silver Spruce and
100,000 shares will be issued to Universal) and expend $100,000 upon
the Property by July 31, 2008.

Upon issuing the shares and making the required expenditures, Bayswater
will be deemed to have exercised its option and acquired a 50% interest
in the Property, with Universal and Silver Spruce each holding a 25%
interest in the Property and a joint venture will be formed between the
parties of which Bayswater shall be the operator.

The agreement is subject to the approval of the TSX Venture Exchange,
and the shares payable under the Agreement, when issued, will be
subject to a four month hold period.

Bayswater has recently completed an airborne EM and magnetic survey
over the Stipec River Joint Venture lands and is planning further
prospecting, rock and soil sampling and possibly drilling of favourable
targets this year. In a news release dated July 12, 2007, the Company
reported that: "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 0.1% to 0.4% U3O8." This favourable conductive zone occurs
partly on the Stipec River Joint Venture land; however, the bulk of the
favourable zone and all known uranium prospects are on claims in which
Bayswater has a right to acquire a 100% interest from Longview Capital
Partners Inc. (TSX-V: LV), under an option agreement. To date 9 drill
holes have been completed on the Stipec River Zone A and E Prospects on
land subject to the Bayswater/Longview option. Assay results are
pending from a number of radioactive zones identified in drill core
from this drilling.

These additional Stipec River Joint Venture claims as above, plus the
829 claims (207 sq km or 51,210 acres) announced August 1, 2007 subject
to the Makkovik River Joint Venture with Ucore Uranium Inc. (TSX-V:
UCU) along the eastern extension of the historic Labrador uranium
district, bring Bayswater's total land interests in the Labrador
Central Mineral Belt to 18,507 claims (4626 sq km or 1,143,254 acres),
the largest landholder in the region. A map showing the location of
these joint venture lands can be viewed on the Company's website at
http://www.bayswateruranium.com/i/Full/Bayswater-Land-Aug-3.gif.

About the Labrador Central Mineral Belt

The Central Mineral Belt of Labrador, Canada, located approximately 135
kilometres north of Goose Bay, has a long history of uranium and base
metals exploration. Uranium was first discovered in the belt in the
1950's. With further exploration in the 1960's and 1970's and rising
uranium prices, exploration in the region increased significantly and
several uranium deposits were discovered including the Kitts, Michelin,
Inda, Nash, Rainbow and Moran Lake deposits by Brinco. Today,
exploration activity in the region is highlighted by resource drilling
at the Michelin and Jacques Lake deposits by Aurora Energy Resources
Inc. (TSX: AXU), and at the Moran Lake deposit by Crosshair Exploration
& Mining Corp. (TSX-V: CXX). Collectively nearly 100 million pounds of
NI 43-101 compliant uranium resources has been reported in the Central
Mineral Belt by Aurora and Crosshair, a figure that is expected to
increase significantly in the coming years through increases to
existing resources as well as new uranium discoveries. Bayswater
Uranium---the largest landholder in the Central Mineral Belt---has
interests in 4626 sq km of strategic land holdings; whereas, Aurora
controls about 800 sq km and Crosshair approximately 640 sq km.
Bayswater is aggressively pursing uranium targets within its
landholdings with the objective of discovery of new uranium resources.

About Bayswater Uranium Corporation - The Super JuniorTM Uranium
Company

Bayswater Uranium Corp. 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 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 JuniorTM 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 is pursuing
additional merger and acquisition opportunities that complement and/or
add to the Company's existing assets and business model. 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

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents herein.

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

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents herein.

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Copyright (c) 2007 BAYSWATER URANIUM CORPORATION (BVE) All rights
reserved. For more information visit our website at
http://www.bayswateruranium.com/ or send
mailto:info@bayswaterventures.com
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