Mr. James Pettit reports

BAYFIELD DRILLS 35.93 G/T AU OVER 10.0M WITHIN 13.28 G/T AU OVER 28.0M IN RAINY RIVER, NW ONTARIO

Bayfield Ventures Corp. has made an additional high-grade gold discovery on its 100-per-cent-owned Burns block property in the Rainy River district of Northwestern Ontario. The Burns block is situated immediately to the east and on strike to Rainy River Resources Ltd.'s gold project.

A map of the Rainy River gold properties claims is on the company's website.

Highlights

Another significant high-grade gold discovery early in 20,000-plus-metre (50-plus-hole) diamond drill program is 35.93 grams per tonne gold over 10.0 metres within 13.28 grams per tonne gold over 28.0 metres intersected in hole RR10-18. The linear plunge distance between the high-grade zone in the previously reported hole, RR10-15, and that in the newly reported hole, RR10-18, is in excess of 400 metres, indicating a potential for a high-grade gold shoot of considerable length. The map distance between the collars of RR10-15 and RR10-18 is approximately 125 metres; little drilling between the holes has been done, with 13 additional holes completed and assays pending.

Drill hole RR10-18 has intersected high-grade gold mineralization within the upper portion of a lapilli tuff unit from 488 metres to 516 metres downhole. The intercept totals 28.0 metres at 13.28 grams per tonne gold and includes 10.0 metres of 35.93 grams per tonne gold. The hole targeted the downdip extension of the 283 gold zone in the southern portion of the Burns block. The 283 zone was initially discovered by Rainy River in 2008 during its drill program on the Burns block and is interpreted to be an eastward extension of Rainy River's ODM17 gold zone (see Rainy River news release in Stockwatch dated Sept. 16, 2008). The Bayfield news release of Aug. 18, 2010, in Stockwatch reported the results from the first four holes in the current 20,000-plus-metre drill program, which were all drilled into the 283 zone and all intersected gold. These results were highly encouraging and prompted Bayfield to do more drilling into the zone.

The gold mineralization in RR10-18 continues to show that very high gold grades do occur within broad, mineralized envelopes. The best indication of this fact is that the very high-grade 11-metre interval reported in hole RR10-18 is contained within 81 metres of altered volcanic rock grading 2.70 grams per tonne gold. Bayfield has partially delineated two of these envelopes on the Burns block, the 283 and West gold zones, and is currently in the initial stages with a second drill rig of exploring a similar zone of gold mineralization on its 100-per-cent-owned B block property immediately to the northeast of the Burns block.

A Burns block drilling exploration map is available on the company's website.

Bayfield believes that the West and 283 gold zones are, in fact, the updip and downdip extensions of a single, south-dipping zone of gold mineralization. Additionally, the initial examination of the position and geologic setting of the high-grade gold intercept in RR10-18 strongly suggests that this mineralization represents the downplunge extension of the mineralized 606 high-grade zone in hole RR10-15 which intersected 31.71 grams per tonne gold over 3.0 metres within 12.88 grams per tonne gold over 9.0 metres (see Bayfield's news release in Stockwatch of Aug. 24, 2010). The linear distance between the shallow high-grade zone in RR10-15 and the deeper high-grade zone in RR10-18 reported here is in excess of 400 metres. The plotted geometry of the two intercepts strongly indicates that a high-grade gold shoot of a size, thickness and grade similar to those being delineated by Rainy River to the west has been found by Bayfield on the Burns block.

Infill drilling of the high-grade shoot will commence as soon as the drill rig has completed a critically important fence of drill holes in the northern section of the Burns block. This current fence of holes is exploring the updip portion of the West gold zone and has been slightly modified to also explore for the updip portion of the 606 high-grade zone in hole RR10-15.

Significant gold intercepts from the latest batch of assay results for holes RR10-17 and RR10-18 are listed in the attached table. Hole RR10-17 was drilled from the same collar as RR10-18. Due to the flatter dip of hole RR10-17, the distance between it and hole RR10-18 is approximately 100 metres (EOH) in the area of the strong mineralization of RR10-18. This distance is important in putting the 250-part-per-billion to 1,100-part-per-billion gold mineralization in RR10-17 in perspective. It appears that this low-grade mineralization represents a portion of the mineralized envelope around the highly mineralized zone in hole RR10-18.

                          SIGNIFICANT GOLD INTERCEPTS

Drill hole     From (m)   To (m)   Interval (m)   Gold (g/t)         Gold zone

RR10-17           350       364        14.0       Highly anomalous   No. 283
                  397       411        14.0       Highly anomalous 
Including         403       407         4.0            1.13 
       
RR10-18           178       183         5.0            0.83          No. 283
                  488       569        81.0            2.70 
Including         488       516        28.0           13.28 
Including         490       491         1.0            4.43 
Including         497       507        10.0           35.93          See below
Including         542       553        11.0            2.01 
Including         545       546         1.0           15.60

An attached chart breaks down the 10.0-metre interval grading 35.93 grams per tonne gold from 497 metres to 507 metres in hole RR10-18.

                              RR10-18 RESULTS

Drill hole     From (m)   To (m)   Interval (m)   Gold (g/t)         Gold zone

RR10-18           497       507        10.0           35.93          No. 283
Including         497       498        1.0            18.10 
Including         498       499        1.0            63.90 
Including         499       500        1.0           109.00 
Including         500       501        1.0            26.30 
Including         501       502        1.0            18.40 
Including         502       503        1.0             3.10 
Including         503       504        1.0            90.30 
Including         504       505        1.0            10.90 
Including         505       506        1.0            11.60 
Including         506       507        1.0             7.70

Hole RR10-18 was drilled to the north at an initial inclination of 88 degrees. The hole flattened to an inclination of 79 degrees toward the end of the hole, at 550 metres. Based on the details of core logging of the gold zone in RR10-18, as well as logging results from surrounding holes, the true width of the 10.0-metre downhole interval grading 35.93 grams per tonne gold is estimated to be 80 per cent of true width. This estimate compares very well with the estimated 9.0-metre true width of the zone in hole RR10-15.

Geologic character of the high-grade gold zone

Numerous fine grains (to two millimetres) of visible gold occur in the highest-grade portions of the intersection. This mineralogical data, as in the high-grade gold zone in RR10-15, strongly suggests that the intersection is not based on sporadic occurrence of very coarse gold but rather due to the presence of pervasive mineralization of microscopic to locally visible gold within the entire zone.

The new gold zone contains moderate to abundant pyrite, sphalerite and intense sericite alteration of the lapilli tuff host rock. The sulphides occur as stringer veinlets and clots, typical of other mineralized zones in the Rainy River area. The zone is strongly deformed and contains scattered quartz veinlets. Fine-grained grey sulphides up to 0.5 per cent occur in the high-grade interval. This mineral is tentatively identified as galena. Silver assays of the high-grade portions of both holes RR10-15 and RR10-18 are currently being completed due to the very strong correlation of the presence of galena and silver values greater than 100 parts per million.

A Rainy River regional geology map is available on the company's website.

The mineralization is localized within the upper portion of a distinctive volcanic lapilli tuff unit within the dominantly intermediate to felsic volcanic rock sequence of the property. This consistent stratigraphic location of strong sericite alteration and abundant gold and sulphide mineralization was first recognized by Bayfield during the 2010 winter drill program at the Burns block. The mineralization thus has a generally stratabound geometry. However, other crosscutting features, including intense foliation and the presence of quartz veinlets within the mineralized zones strongly suggest structural control of the gold zones, as is typical of the vast majority of gold deposits found in Archean-aged rocks worldwide.

Discussion of assay results

Bayfield is in the process of studying all data from the strongly mineralized intercept in hole RR10-18. As was mentioned earlier, the position of the new intercept in RR10-18 relative to that in RR10-15 fits very well with the geometry of high-grade gold shoots currently being delineated by Rainy River immediately to the west of the Burns block. It is very likely that the high-grade zone intersected at depth in hole RR10-18 is the downplunge extension of the 606 high-grade gold zone. In both cases, the high-grade gold mineralization occurs within large zones of more disseminated gold mineralization.

Jim Pettit, chief executive officer of Bayfield Ventures, stated: "We are elated to have hit another high-grade gold intercept in only the 11th hole drilled in the current 50-plus-hole program. Bayfield continues to intersect gold zones on its Burns block at both shallower and deeper depths. We are now more confident than ever that with continued drilling a significant gold resource can be delineated on the Burns block."

Exploration potential

The discovery of additional high-grade gold mineralization on the Burns block property fully confirms Bayfield's earlier assessments of the exploration potential of the ground and that the mineralization at the Burns block is the direct eastward extension of Rainy River's adjacent ODM17 gold zone. The linear, downplunge, distance between the shallower high-grade intercept in RR10-15 and the deeper high-grade intercept in RR10-18 is in excess of 400 metres. A detailed, 3-D study of all drilling data in the area of the intercepts is under way in order to provide more data on the potential shape and possible connection of the high-grade zones. This study will result in the identification of a series of drill locations designed to expand the high-grade gold zones and to explore for the potential connection of them in a plunging gold shoot.

Bayfield is still at a very early stage of exploration on both the Burns and the B block properties. The company has developed plans to continue to explore for the eastward strike expansion of mineralized zones at the Burns block, as well as to explore for higher-grade gold zones throughout both properties. The plans at the Burns block are being guided by the recognition of the importance of the upper portion of the distinctive lapilli tuff unit as described above. The structure strikes approximately east-west and dips south. This geometry bodes well for additional discoveries in the central and eastern portions of the Burns block. The setting of the known gold mineralization at the B block is currently being evaluated based on data from the initial pair of holes completed there.

Bayfield feels that its current exploration method of drilling to establish the presence of lower-grade gold envelopes followed by infill drilling to define higher-grade gold zones is working well. This exploration method will be applied at both the Burns and the B blocks as the exploration of both properties advances.

Drill core analysis and assaying is being conducted by ACT Labs in Thunder Bay, Ont. The lab is ISO/IEC 17025:2005 (CAN-P-4E) certified. The drill core is split and sampled in standard 0.5-metre to one-metre intervals. The core samples were analyzed for gold by 30-gram fire assay with AA finish and by gravimetric methods from assays over 3,000 parts per billion (overlimit). Screened total metallic assays are being performed on samples assaying over 5,000 parts per billion. The company has implemented a quality assurance and quality control program to ensure that the sampling and analysis of all samples is conducted in accordance with the best possible practices.

Shane Hu, PGeo, project geologist for Bayfield Ventures, is the qualified person as defined by National Instrument 43-101 and supervised both the project field and the preparation of the technical information in this release.