Bayswater Announces Cost Reductions and Growth Plans

VANCOUVER, BC--(Marketwire - October 30, 2008) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to report on its operational and growth plans. Given current market conditions, the Company is significantly reducing overhead and project expenditures going forward with a realigned focus primarily on acquisition of advanced uranium projects, and secondarily on development of select Canadian and United States projects through joint ventures. As Bayswater has adequate financial resources, these measures will enable the Company to stay operational for several years with minimal cash raises and, at the same time, maintain its major property assets, cost-effectively advance some of its key projects and, most importantly, pursue the acquisition of advanced uranium projects that add immediate value and strong growth potential. At the same time, these measures will allow the Company to maintain its management team.

Financial Resources

The Company's working capital is approximately $7.5 million of which approximately $1.2 million consists of flow-through funds that will be spent by the end of December 2008. The bulk of these flow-through funds will be invested exploring our Brudell Lake property in the Athabasca Basin (see October 16 news release) with an initial drilling program, now underway, to test one or two of five priority targets.

Further project expenditures will be funded by additional capital raises. However, the Company anticipates this will be minimal-likely in the order of $2 million in flow-through funds for Canadian projects and $nil for U.S. projects during this market downturn. Bayswater is also seeking joint venture partners to fund development of selective projects in Canada and United States.

Bayswater's annual cash burn rate, including property maintenance costs, which is currently about $3.8 million, is being reduced to approximately $1.5 million.

Projects

Bayswater holds a balanced portfolio of advanced and early-stage uranium properties that were acquired through first-mover land acquisitions, strategic corporate mergers and timely capital raises. These acquisitions enabled Bayswater to be the only company that holds significant landholdings in Canada's most important uranium regions: the Athabasca Basin, the Thelon Basin, and the Central Mineral Belt. Extensive exploration in these regions over the past 3 years has identified over 20 favourable targets that warrant major drill testing. Each of these targets has the potential to lead to a major discovery. One such target, tested in the Central Mineral Belt, Labrador, led to our discovery at Anna Lake which was the focus of a major drilling program during 2007 and 2008.

In the western United States, Bayswater has several advanced projects with historical uranium resources of over 12 million lbs (not compliant with NI 43-101 and should therefore not be relied upon). These properties have excellent potential for substantially increasing resources and advancement towards feasibility and production.

Growth

To continue to grow and take advantage of opportunities during this market downturn, Bayswater's primary focus will be twofold: firstly, to pursue acquisition of advance-stage uranium projects at the feasibility stage with near-term (2-4 years) production potential, and secondly, to pursue joint venture partnerships on some of its Canadian and U.S. uranium properties in order to continue to advance certain projects.

A Statement from George Leary, President of Bayswater, to our Shareholders and Potential Investors:

"As a result of market conditions, we are reducing expenditures across the board, yet plan to maintain our key assets and management team and cost-effectively advance select projects to ensure the value added to our projects to date is safeguarded and potentially enhanced in some areas on behalf of our shareholders. In addition, and most importantly, we intend to aggressively pursue the acquisition of advanced uranium projects as opportunities arise during this market downturn in order to facilitate rapid growth of the Company once the junior markets turn positive. Our initiatives will enable us to weather the current market downturn and be well positioned when the junior markets recover."

About Bayswater Uranium Corporation - The Super Junior™ 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. 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™ 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

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