Mr. Brian Buchanan reports

BERKWOOD ACQUIRES PETER LAKE COPPER PROPERTY IN QUEBEC

Berkwood Resources Ltd. has signed a property option agreement with Groupe Ressources Geomines Inc., represented by Michel Belisle, pursuant to which Berkwood has been granted an option to earn a 100-per-cent-interest in the Peter Lake copper property located near Mont-Laurier, Que.

The Peter Lake property

The Peter Lake property consists of 24 claims totalling 1,403 hectares located in the Mont-Laurier terrane, in the central Grenville province, Quebec. The property lies within a sequence of metasedimentary rocks, felsic intrusives and gabbros. Copper-nickel mineralization in the area closely follows northeast-controlling structures. The mineralization lies within late gabbroic dikes, and the mineralized structure has been traced for more than two kilometres on surface. The property has the potential to host other minerals, including gold, molybdenum and platinum group elements.

Berkwood intends to conduct an exploration program on the property commencing immediately, with a complete compilation of historic geological work, followed by surface work, trenching and possible diamond drilling in the future.

Property option agreement

Pursuant to the terms of the agreement, Berkwood has the option to acquire a 100-per-cent interest in the property by making cash payments and issuing Berkwood securities, set forth as follows:

• $5,000 at the signing of the agreement;
• $45,000 cash payment and a total of 750,000 common shares of Berkwood within 14 days after the date of the approval of the TSX Venture Exchange;
• $50,000 cash payment to the vendor 12 months after the approval by the TSX Venture Exchange.

A total net-smelter royalty (NSR) of 2 per cent shall be payable to the vendor on all metals produced from the property. The company shall have the right at any time to buy back 1 per cent of the NSR from the vendor for a total payment of $1-million.

This news release has been reviewed and approved by Alain Moreau, PGeo, who supervised the preparation of the technical information in this news release. Mr. Moreau is a qualified person as defined by National Instrument 43-101.

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