Bayswater Receives Positive Pre-Feasibility Study on Reno Creek Uranium Project, Wyoming

Demonstrates Excellent Technical and Economic Feasibility for Development
VANCOUVER, British Columbia--(Business Wire)--
Bayswater Uranium Corporation (TSX-V: BAY), (OTC: BYSWF) is pleased to announce
that it has received a positive NI 43-101 compliant Pre-Feasibility Study report
(PFS) from TREC, Inc. on the technical and economic feasibility of the Reno
Creek Uranium Project (the Project) in Wyoming. The PFS is based on the
Project`s NI 43-101 measured and indicated resources of 10.9 million pounds with
an in situ recovery mine (ISR) and central processing plant facility (CPP)
designed to produce up to 2 million pounds per year of U3O8. The design will
also allow for the processing of uranium-containing leach solutions or loaded
resin from other nearby resources within the Reno Creek Project not incorporated
into this study.

The economic analysis demonstrates the following:

* Expected start of production no later than the beginning of 2015, subject to
approval by State and Federal government authorities.
* Recovery of approximately 7.6 million pounds, based on an estimated 70%
recovery factor.
* Production is planned to occur over six years.
* Capital Cost: US$48.2 million.
* Cash Operating Costs: US$13.72 per pound U3O8
* Operating Costs (Includes all-in operating & capital costs): US$26.39 per
pound U3O8.
* Operating Cash Flow: US$311 million, or US$41.18 per pound U3O8, based on
average product price of US$67.57.
* Internal Rate of Return (IRR): 79%
* Net Present Value (NPV): US$164 million using an 8% discount rate.

TREC prepared the designs and economic evaluation based on the development of
five wellfields surrounding a central processing plant. The wellfields will be
connected to the plant via pipelines. The initial capital cost, including the
initial two wellfields, central processing plant, and pre-production capital
costs related to environmental, permitting, and engineering is projected to be
US$48.2 million. Operating costs, including return of capital and
reclamation/decommissioning, are expected to be approximately US$26/lb U3O8. The
uranium price projection for long term contracts used in the study is based on
UxC`s U3O8 Price Projection Comparison for the period 1987 to 2020, as published
in their Uranium Market Outlook report for the first Quarter of 2009. The
average projected price for the period of production, from 2015 through 2020,
was estimated to be US$67.57.

The NPV for the project, at a discount rate of 8% is projected to be
approximately US$164 million, and the IRR is 79%. Payback is expected to take
approximately two years from commencement of construction. The PFS incorporates
a sensitivity analysis, which demonstrates that:

* The Project`s economics are highly sensitive to the price of uranium. For
example, the NPV for an average price of uranium of $80 is approximately US$204
million.
* The Project`s economics are only slightly sensitive to variations in capital
and operating costs. For example, a five percent variation in the capital costs
changes the NPV by approximately US$2 million and a five percent variation in
operating costs changes the NPV by approximately US$2.3 million.

The PFS does not assess the economics of the 4.73 MM lb of 43-101 compliant
inferred resources nor the 8.4 MM lb of historical resources that are also part
of the Reno Creek Project, and which are located within approximately five miles
of the proposed location of the central processing plant. This historical
resource estimate is not compliant with NI 43-101 and should not be relied upon.
Bayswater`s plans are to mine these additional resources and process them at the
CPP.

Following closing of the acquisition by the Company of the Reno Creek Project as
announced August 24, 2009, the Company plans detailed scoping sessions with the
regulatory agencies in preparation for completing baseline environmental,
hydrological, and engineering activities during 2010 and 2011. Environmental
baseline studies that have been previously started and will be completed by the
Company include flora and fauna, soils, archaeological and cultural resources,
surface and ground water hydrology, wetlands, water and air quality and
meteorology. The Project has previously received a permit to install baseline
ground water monitoring wells which will be used for both hydrologic and water
quality studies, including any necessary pump tests. Additional mine and plant
facility engineering required for licensing will be completed during the time
period. The Company plans to submit its applications for permits and licenses by
the end of 2011. The Project should advance to the feasibility stage during 2014
with construction to follow and production to commence in 2015.

The Pre-Feasibility Study, dated September 28, 2009, was prepared by TREC, Inc.,
and authored by Douglass H. Graves, P.E., who is a Qualified Person as defined
by National Instrument 43-101 and has reviewed the contents of this News
Release. The Company intends to file the 43-101 compliant report with the TSX on
SEDAR and post a summary of the PFS on its website.

As reported earlier, Bayswater has signed letters of intent with Strathmore
Resources (US) Ltd., a wholly owned subsidiary of Strathmore Minerals Corp
(TSX-V: STM),and American Uranium Corp (OTC: ACUC) to acquire the Reno Creek
Uranium Project ("the Project") and its holding company, AUC LLC. The Project
comprises NI 43-101 compliant resources of 10.96 million pounds of U3O8
contained in 8,268,872 tons at an average grade of 0.066% U3O8 measured and
indicated and 4.73 million pounds of U3O8 contained in 3,796,930 tons at an
average grade of 0.063% U3O8 inferred. In addition, Reno Creek contains
approximately 8.41 million pounds of U3O8 in historical resources contained in
5,066,265 tons grading approximately 0.083% U3O8 (Pathfinder Resources, 1980;
Rocky Mountain Energy, 1986). The Project also has excellent potential to
significantly increase resources through low-risk exploration. An extensive
database, deep well injection permit and a disposal well are being acquired in
conjunction with the Reno Creek property and resources.

The Reno Creek Project encompasses approximately 17,500 acres of claims and
leases, including 563 unpatented mining claims, four Wyoming State mineral
leases, four fee (private) mineral leases, and five surface access agreements.
The near-ideal geological characteristics of the uranium deposits which make the
resources conducive to low-cost, minimal-impact ISR mining, combined with the
benefits of nearby infrastructure within a highly favorable political
jurisdiction for uranium mining, are among the chief reasons that the Reno Creek
Project is one of the best and lowest cost undeveloped major uranium deposits in
the western United States.

The Project assets being acquired also include a deep well injection permit
(i.e. UIC Permit in the renewal process) for two disposal wells for the wastes
from the ISR operation, plus an abandoned dry oil well that will serve as one of
the deep injection wells. Also included in the Project assets are complete
electronic and paper logs on approximately 1100 drill holes, additional data on
up to 900 more drill holes, and several geologic, hydrologic, and engineering
studies on the Reno Creek and Reno Creek Southwest deposits. Additional drill
hole data is also available for historical drilling on the Pine Tree Trend.

Bayswater has a strong management and technical team, cumulatively with over 120
years of combined experience in exploration, permitting, development and
operation of uranium production, plus a group of industry-leading consultants
with uranium experience in the U.S.A, Canada, and overseas.

George M. Leary, President of Bayswater stated, "TREC`s Pre-Feasibility Study
demonstrates the robust economic viability of the Reno Creek Project. The
report`s recommendations are consistent with the Company`s proposed development
schedule and it affirms the work of our in-house staff. The Project will form
the basis, once the acquisition as announced closes, for building a major
uranium company."

Bayswater`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 Bayswater Uranium Corporation - The Super Junior Uranium Company
TM

Bayswater Uranium Corporation is an international uranium exploration and
development company. The Company owns several advanced uranium properties in the
United States with significant historical resources that may be amenable to ISR
and/or conventional mining. As well, Bayswater is 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 combines a balanced portfolio of advanced and
exploration projects with the uranium expertise of its technical and managerial
teams. To capitalize on current market conditions and strong growth of the
nuclear industry, the Company is pursuing acquisition opportunities of
advanced-stage uranium projects with near-term production potential. 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

Statements in this press release other than purely historical information,
including statements relating to the Company`s future plans and objectives or
expected results, constitute forward-looking statements.Forward-looking
statements are based on numerous assumptions and are subject to all of the risks
and uncertainties inherent in the Company`s business, including risks inherent
in mineral exploration, development and mining.There can be no assurance that
such forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements.Accordingly, readers should not place undue reliance on such
statements.The Company does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in accordance with
applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.

Bayswater Uranium Corporation
John Gomez, 604-687-2153
Manager, Investor Relations

Copyright Business Wire 2009