NEWS RELEASE
Bayswater: Kilgore
Acquires Extensive Database for Mountain West Uranium Property, Nevada
Vancouver, BC, July 10, 2007 ─ Bayswater Uranium Corporation
(TSX-V:
BAY)
reports that
Kilgore Minerals Ltd. (TSX-V: KAU) has acquired an
extensive database on its wholly owned Mountain West Property in Elko County,
Nevada. The data was acquired from Pathfinder Mines Corporation, former owner
and operator of the property. The package was acquired for an initial cash
payment, with a further cash payment to be made when and if Kilgore receives a
Nevada Mine Permit for any property in the Mountain City Nev-Idaho 15� quad
sheet. The Purchase Agreement also included the grant of a Right of First Offer
to UG USA, Inc., concurrent with the signing of the Purchase Agreement, under
which Kilgore has entered into an Agreement for the Sale of Uranium Concentrates
with UG USA, Inc. The Right of First Offer applies to the first 1,000,000 pounds
of uranium concentrate production from the Mountain West Property, at a 1%
discount to the prevailing spot price of uranium. Pathfinder and UG USA are
affiliates of Areva.
The data documents exploration activities from 1967 to 1983
during which period 359 drill holes were completed. Work in the last few years
was essentially assessment work. In 1977, Pathfinder calculated a total
"geological reserves" of 333,600 tons averaging 0.178% eU3O8* or 1,189,000
pounds eU3O8*. Open pit "indicated reserves" were computed to be 303,600 tons at
an average grade of 0.153% eU3O8* or 927,400 pounds eU3O8* and an additional
open pit "inferred reserve" of 35,000 tons at a grade of 0.14% eU3O8* or 98,000
pounds eU3O8*. These are historical estimates, and as a qualified person has not
done sufficient work to classify the historical estimates as current mineral
resources, Kilgore is not treating the historical estimates as current mineral
resources as defined in NI 43-101, and they should therefore not be relied upon.
The work was completed by competent and experienced operators, and management of
Kilgore considers the work and conclusions relevant to the evaluation of the
project. Pathfinder concluded that there was significant potential for the
discovery of addition uranium mineralization.
* The denotation "eU3O8*" means U3O8 assay as determined by the
extrapolation of radioactivity in the sample to the actual uranium content. The
actual uranium content (usually determined by chemical assay) can be higher or
lower than the "e" uranium value if the deposit is out of equilibrium. This is
often the case with relatively young mineralization such as the mineralization
at the Mountain West property. Preliminary equilibrium work by Pathfinder
suggested that the actual, or chemical, uranium values are 30% higher than the
values as determined by the probe, or "e" values.
The acquisition of this database is an important step in
advancing this project. Management believes that the identified resources are
significant and that there is excellent potential to discover and develop
additional uranium resources on the property. Accordingly, permitting of a
comprehensive program of confirmation, infill and exploratory drilling on the
property has been initiated.
As previously announced, Bayswater and Kilgore are completing a merger which
is expected to close within the next couple of weeks subject to shareholder and
final regulatory approvals.
About Bayswater Uranium Corporation - The
Super JuniorTM Uranium Company
As the only uranium explorer 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 Uranium Corp. is well positioned to be a market leader in uranium
exploration. Bayswater combines the uranium expertise of its technical and
managerial teams with a large, highly prospective and diverse property base. 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. For further information visit www.bayswateruranium.com.
On behalf of the Board of:
BAYSWATER URANIUM CORPORATION