Reno Creek Project Receives Aquifer Exemption Approval from EPA

LAKEWOOD, COLORADO--(Marketwired - Nov. 23, 2015) - AUC LLC ("AUC") is pleased to report that the U.S. Environmental Protection Agency (EPA) has issued its formal concurrence with the Wyoming Department of Environmental Quality (WDEQ) Aquifer Exemption recommendation. This decision by the EPA completes AUC's Permit to Mine for the Reno Creek Project (the "Project").

EPA's Record of Decision, issued October 2015, notes that the portion of the Production Zone Aquifer proposed for the exemption does not serve as a source of drinking water, and that the WDEQ has demonstrated that any fluids injected or mobilized will stay in the aquifer exemption area. EPA also observed that no public comments were received by WDEQ during the public comment period for the aquifer exemption. The Permit to Mine, earlier issued by the WDEQ, affirmed that the mining and processing operations, groundwater restoration, and final reclamation can be accomplished with no significant environmental consequences.

The Nuclear Regulatory Commission is currently reviewing AUC's application and is in the process of preparing a Source Materials License and a Draft Supplemental Environmental Impact Statement for publication.

The Reno Creek Project

The Project includes approximately 21,000 acres of private land, plus a small amount of Wyoming State land, located in the Powder River Basin of northeastern Wyoming, USA, a well-established ISR uranium mining district. Operating uranium ISR projects in or near the Powder River Basin include Uranium One's Willow Creek project, Cameco Corporation's Smith Ranch-Highland and North Butte facilities, and Energy Fuels' Nichols Ranch project. Peninsula Energy's Lance Project is in the late stages of construction in Crook County, WY. Several other projects are in the permitting stage in Wyoming and adjacent South Dakota.

AUC issued a Preliminary Feasibility Study, prepared by Tetra Tech and TREC, Inc., on May 9, 2014, which highlighted several features of the Project¹ .

• Measured and Indicated Resources of 21.9 million pounds U₃O₈ at 0.30 %-ft GT cutoff
• Inferred Resources of 1.6 million pounds U₃O₈at 0.30 %-ft GT cutoff
• 20.1 million pounds of Probable Reserves as U₃O₈
• Recoverable uranium of 14.9 million pounds U₃O₈
• Production designed for up to 1.5 million pounds U₃O₈ per year
• Initial Capital Cost: US$78.4 million
• Cash Operating Costs: US$18.84 per pound U₃O₈
• Total Project Costs (pre-tax): US$33.87 per pound U₃O₈

The Project will use standard ISR processes to recover uranium from the host sandstone to produce uranium as a U₃O₈ yellowcake product. Yellowcake will be packaged in 55 gallon drums and shipped to a licensed conversion facility for further processing after sale. The Project is designed to produce up to 1.5 million pounds per year of uranium as U₃O₈ from 16 production units and a Central Processing Plant (CPP) over the 12 years of production.

The CPP will include ion exchange, elution, precipitation, yellowcake drying and packaging operations. Groundwater restoration and reclamation/decommissioning operations are also part of the integrated development and closure plan in the PFS. The CPP is designed to accommodate lixiviant or resin from other nearby sources. The CPP will be located in the southwestern part of the Reno Creek Project on land owned by AUC. The first production units will be developed in the Reno Creek Resource Unit, which is currently being permitted; development of the Moore, Pine Tree, and Bing Resource Units will follow. Plans are to connect production units to the CPP via pipelines. No satellite recovery units are contemplated.

The PFS concludes the proposed Project is technically and economically feasible selling 14.94 million pounds of U₃O₈. The analysis uses an average price of US$65 per pound, consistent with the analyses of AUC's peer junior uranium companies. The Net Present Value (NPV) for the Project, using a discount rate of 8%, is estimated to be approximately US$216 million (pre-tax), and the Internal Rate of Return (IRR) is estimated to be 37% (pre-tax). Payback is projected to occur in the first quarter of the third year of production with net pre-tax earnings (undiscounted) of US$464 million over the life of the project. After tax net cash flow is estimated to be $360 million, and the after tax NPV is estimated to be $150 million (8%).

Total initial project capital costs are estimated at US$78.4 million (excluding working capital) including the CPP (US$44 million), the first production unit (US$19.3 million) which consists of six wellfields/header houses and approximately 480 production wells and 40 monitor wells, and indirect costs of US$15.1 million. Cash operating costs, including production, groundwater restoration, site decommissioning, reclamation, administrative costs, royalties and production taxes are estimated at US$18.84 per pound U₃O₈. Total project costs, including cash operating costs, subsequent wellfield development/installation costs plus initial and subsequent capital, are estimated at US$33.87 per pound U₃O₈. A summary of key project economics are shown below.

Summary of Key Project Economics
Item	Total (US$m)	US$/pound U3O8 Recovered
Revenue	971.2	65.00
Cash Operating Costs (LOM) Initial Project Capital Costs	281.5 78.4	18.84
Total Project Costs (LOM)	506	33.87
Net Cash Flow Undiscounted (Pre-Tax)	464	24.09
NPV8% (Pre-Tax)	216
IRR (Pre-Tax)	37%

1	The PFS titled "Reno Creek Preliminary Feasibility Study Wyoming, USA" was prepared by TREC and Tetra Tech; they are responsible for the PFS, and have reviewed and approved the content of this release.

Qualified Person

Dr. Rex Bryan of Tetra Tech, Qualified Person under NI 43-101, has reviewed the contents of this news release.

About AUC

AUC is a U.S. uranium company in the process of developing the Reno Creek Uranium ISR Facility near Wright, Wyoming. AUC has a strong staff with decades of experience in the discovery, development and operation of ISR uranium facilities. The Pacific Road Resources Funds ("PRRF") have an 89.6% ownership interest in Reno Creek Holdings, Inc., ("RCHI"), the holding company of AUC. Bayswater Uranium Corporation has a 10.4% ownership interest in RCHI. For information about AUC, please visit www.auc-llc.com.

About the Pacific Road Resources Funds

The Pacific Road Resources Funds are managed and advised by Pacific Road Capital Management Pty Ltd ("PRCM"). PRRF are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining related infrastructure and mining services businesses located throughout resource-rich regions of the world. The PRCM team, located in Sydney, Australia, San Francisco, USA, and Vancouver, Canada, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information on the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.

About Bayswater Uranium Corporation

Bayswater Uranium Corporation, owner of a 10.4% indirect interest in AUC, is a uranium exploration and development company listed on the TSX Venture Exchange under the symbol "BYU". Bayswater also owns a 100% interest in the Brudell property located in the Athabasca Basin in Saskatchewan.

ON BEHALF OF AUC

Jim Viellenave, President

AUC LLC