Mr. Victor Tanaka reports

PACIFIC ROAD AND BAYSWATER COMPLETE DEBT SETTLEMENT

Pacific Road Resources Funds (PRRF), Pacific Road Capital Management Pty. Ltd. (PRCM) and Bayswater Uranium Corp. have agreed to a settlement of all outstanding indebtedness of the company owed to PRRF and PRCM, under the investment agreement dated April 7, 2010, as amended, between the company, its subsidiary, Baywater Holdings Inc. (BHI) and PRRF, and the shareholder agreement dated April 7, 2010, as amended, between the company, BHI, PRRF and Reno Creek Holdings Inc. (RCHI), which indirectly owns the Reno Creek uranium project located in the Powder River basin of Wyoming.

Pursuant to a debt settlement agreement dated May 11, 2016, BHI transferred an aggregate of 4,047,321 common shares of RCHI, which shares had previously been pledged to PRRF under prior amendments to the shareholder agreement, in settlement of an aggregate of approximately $2,669,522 (U.S.) owed. Additionally, the company waived certain rights of first refusal and first offer under the shareholder agreement.

As a result of the debt settlement, PRRF's interest in Reno Creek is now 96.91 per cent and Bayswater's is 3.09 per cent.

The Reno Creek in situ recovery uranium project is nearby to several operating uranium ISR facilities. The project has received its Wyoming state permit to mine, its aquifer exemption from Wyoming and the Environmental Protection Agency, and its Class I underground injection control deep disposal well permit from the State of Wyoming. The remaining major permit is the source material licence, which is administered by the U.S. Nuclear Regulatory Commission.