BAYSWATER URANIUM CORPORATION

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

NEWS RELEASE

Bayswater Commences Drilling Program on Newly Discovered Minisinakwa Lake High Grade Uranium Showing, Central Mineral Belt of Labrador

�  Newly discovered Minisinakwa Showing assays up to 3.48 % U3O8

�  5 rock samples return assays greater than 1% U3O8

�  1,000 meter reconnaissance drill program has commenced

Vancouver, BC, September 30, 2008 - Bayswater Uranium Corporation (TSX-V: BAY) is pleased to report on a high-grade uranium showing discovered in the Lake Minisinakwa area of the Central Mineral Belt of Labrador.  Prospecting has uncovered a series of angular, frost heaved uraniferous boulders that are believed to be near source.  The boulders occur along a linear topographic feature which coincides with a magnetic high anomaly, over a minimum strike length of 1.7 kilometers.    

Preliminary assay results from the zone are very encouraging with the highest analyses to date being 3.48% U3O8.  The following table provides a list of results from sampling performed on the zone.  Of  29 samples collected to date, 5 returned assays greater than 1% U3O8, with 26 greater than 0.10% U3O8. 

   Summary of Analyses* From the Minisinakwa Uranium Showing

Diamond drilling has commenced on this showing with a minimum 1,000 meters planned to test potential  subsurface mineralization.  Mr. George Leary states, �We are extremely encouraged by the analytical results to date and geologic setting of uranium mineralization from the Minisinakwa area.  The uranium grades from samples in the area are the best we have seen since beginning to explore in the Central Mineral Belt.�

The Minisinakwa showing is hosted within late paleoproterozoic, mylonitized felsic volcanic rocks in which uranium mineralization appears to have a direct relationship to magnetite banding and potassic alteration.  It is currently thought that the mineralization may be structurally controlled and associated with a topographic low that corresponds to airborne and ground linear magnetic highs.  A ground GPS magnetometer survey has been completed over the zone and has been effective in delineating the magnetic linear.  A series of drill holes will test the linear in an attempt to intersect the source of the boulders.

The Company would also like to provide an update on its 2008 drilling activity at the Anna Lake Uranium Deposit.  Approximately 18,000 meters of drilling has been completed on the Anna Lake Deposit and surrounding reconnaissance targets in the Anna Lake area.  Much of the drilling on the main deposit has been targeting the downdip extension of two higher grade zones within the deposit.  Drilling of these deeper holes has been relatively slow. Results from several of the holes completed are expected in the near future and will be released accordingly.

The Company�s exploration activities are conducted under the supervision of George M. Leary, M.Sc. P. Eng. (B.C.), 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

The Central Mineral Belt of Labrador, Canada, located approximately 135 kilometers 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); at the Moran Lake deposit by Crosshair Exploration & Mining Corp. (TSX-V: CXX); and at the Two-Time Zone by Silver Spruce Resources Inc. (TSX-V:SSE). Collectively, over 145 million pounds of NI 43-101 compliant uranium resources have been reported in the Central Mineral Belt by Aurora, Crosshair and Silver Spruce, 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 is the largest landholder in the Central Mineral Belt with interests in 2,376 sq km of strategic landholdings; Aurora controls about 900 sq km and Crosshair approximately 700 sq km. Bayswater is aggressively exploring several uranium targets within its landholdings with the objective of establishing a NI 43-101 compliant resource at its Anna Lake discovery and making additional uranium deposit discoveries.

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

Bayswater Uranium Corporation 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 feasibility and 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 Junior^TM 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 plans to focus on the development of its resource properties and to evaluate early stage projects for further discoveries.  Other acquisition opportunities will continue to be assessed all with a corporate vision of building a major international uranium company.  Bayswater is listed on the TSX Venture Exchange under the symbol �BAY�.  The Company�s website is 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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