Bayswater to absorb Northern Canadian Uranium (October 17, 2007)

Vancouver – Bayswater Uranium (BAY-V, BYSWF-O) has inked a deal to takeover Northern Canadian Uranium (NCA-V, NCADF-O) for its property portfolio in Wyomings Powder River Basin, northern Saskatchewans Athabasca Basin and Mali, West Africa plus its application on a dozen uranium concessions in Niger.

Bayswater is offering 0.65 of a share for each share of Northern Canadian Uranium, valuing the deal at about $21.5 million based on Bayswaters $1.08 per share closing price prior to the announcement and Northern Canadians 30.6 million fully diluted share position.

In Wyomings Powder River Basin, Northern Canadian has several sandstone-hosted uranium projects with insitu leach potential in close proximity to Bayswaters claims. A combined historic resource of almost 600,000 contained lbs. of U₃O₈ equivalent has been tabulated on several areas of the combined landholdings.

Northern Canadians Athabasca Basin footprint consists of three projects including its 90%-owned Collins Bay Extension property on the eastern rim. It covers the northeast extension of the Collins Bay fault system associated with Camecos (CCO-T, CCJ-N) Eagle Point, Collins Bay and Rabbit Lake uranium deposits.

The 1,000-sq. km Samit concession in Mali is within the Tilemsi Basin that has similar geology to the Tim Mersoi Basin in neighboring Niger. Past work by a Japanese energy company reviewed about 440,000 contained lbs. U₃O₈ in material averaging 0.085% U₃O₈ based on over 400 drill holes.

Northern Canadian also holds the Carol R Mine uranium project in southwestern Nevada that saw open pit mining in the mid-1950s.

Once the deal is consummated, upon regulatory and Northern Canadian shareholder approvals, Bayswater will focus on expanding and updating resources within the combined land package in Wyoming.

Northern Canadians key U.S. properties represent strategic assets for the development of Bayswaters U.S. projects and should significantly enhance the economics of our proposed mining operations,” states Bayswater president George Leary in the proposed merger announcement.

Bayswater, which touts itself as a super junior uranium company, acquired Kilgore Minerals earlier this year through a similar merger deal that significantly built up its land position in key U.S. uranium districts.

Outside of its Athabasca Basin and U.S. portfolio, Bayswater also has significant landholdings in Labradors Central Mineral Belt and in Nunavuts Thelon Basin.

Shares of Northern Canadian Uranium jumped 36% on the planned merger news closing up 14 to 53 apiece while Bayswater slipped 14% to close down 15 at 94 per share.

Bayswater recently resumed exploration activities on its Labrador CMB project after suspending operations for about two-weeks due to a helicopter accident in early-October that claimed the pilots life.