Mr. David Hodge reports

BERKWOOD REFUTES GERMAN NEWSLETTER

It has come to the attention of the company that MoneyBlog.de, a newsletter written in Europe, has been promoting and touting the company's prospects. MoneyBlog.de is not affiliated with the company in any way, and it has no way of verifying whether the report writer is in fact a shareholder as the newsletter states.

While making no comment on the newsletter's recommendations or pure opinions, the company states that some of the facts about the company as stated in the MoneyBlog.de newsletter are wrong, and the newsletter contains no balance about the prospects of the company. Investors should read the risk factors and the disclosure filed by the company prior to making any investment decision.

The company is proceeding with its one-for-10 share consolidation as announced Aug. 19, 2016, and is considering ways to pay off its substantial debt, as disclosed in recent quarterly financial statements. There are no updates with respect to the company's properties, and no work program was conducted during summer 2016.