Mr. Thomas Yingling reports

BERKWOOD COMPLETES PHASE 3 DEFINITION DRILLING AT LAC GUERET SOUTH, QC

Berkwood Resources Ltd. has successfully completed its nine-hole phase 3 definition drilling program on zone 1 at the company's 100-per-cent-owned Lac Gueret South project (refer to news release of March 5). The program was designed to constrain the southwestern and southern margins of mineralization, and to probe aspects of the structural (fold) model being developed for western zone 1. Drilling continued to intersect substantial graphite (Cgr), with all nine holes hitting graphite and eight of the holes returning significant intercepts of Cgr.

"So we begin the exciting but painstaking work required to unravel the structural and geological disposition of the Lac Gueret South zone 1 graphite deposit, as Berkwood endeavours to chart a focused and efficient program to define the potential for an economically mineable resource there. Field crews have been on-site at Lac Gueret since early February to perform detailed structural logging and analysis of previous drill core -- and we are increasing our structural capabilities through new collaboration with Terrane Geosciences. We are making progress in stages, and continue with each successive phase to build on the great results we have enjoyed since discovery," stated Tom Yingling, president and chief executive officer. "Critically, the exploration potential for a significant graphite deposit continues to be supported by the phase 3 campaign."

The 1,500-metre program continued to use oriented core techniques, and Tony Gilman of Terrane Geosciences was stationed at the site at the start of phase 3 to review structures in phase 2 and 3 oriented core and to train the field team for detailed structural data collection. Terrane Geosciences will be merging these structural data with existing geology logs in preparation for phase 4 work planning.

The continued testing of the western end of zone 1 supports a model for the graphite horizons probably being folded at the western end of the geophysical anomaly. Several other examples of similar folding in the basement rocks that are observed within an eight-kilometre radius of the deposit show that arcuate fold patterns on the scale of the zone 1 occurrence are common in the area. Further drill testing is required to continue to define the continuity and structural disposition of the mineralised intervals. In addition to drilling, and when snow conditions permit, the company is considering an in-hole/intrahole electromagnetic survey (mise a la masse (MALM)) that charges specific graphite horizons which can then be traced between holes and on the surface.

Sampling

About 258 sawn core samples from phase 3 drilling are to be shipped to MS Analytical Laboratories in Langley, B.C., for treatment under the same analytical procedures applied to the samples from previous programs. Of the 258 samples, 201 were graphite-bearing rock; 47 were bracket (boundary) samples with very low to no observed graphite; and 10 were field-introduced quality assurance/quality control materials including duplicate and blank samples. No certified reference standards were inserted in the field. The laboratory routinely uses a variety of graphite and sulphide standards whose grades and matrix mineralogy are similar to the sampled materials. Each sample during both the crushing and pulverizing preparation phases will be subjected to quartz sand cleaning between samples to reduce any potential for cross-contamination. Assay results for phase 3 samples are expected after the middle of April.

Continuing mineral characterization

Berkwood has retained the services of Met-Solve Laboratories Inc. of Langley, B.C., to initiate mineral processing tests on a suite of graphite mineral samples. This work is required for metallurgical testing for process design following the positive initial flake sizing results announced on March 8, 2018, when the company announced that testing had revealed that a large portion of the graphite flakes in a representative suite of samples are coarse large flake (20 mesh to 100 mesh) and easily concentrated by simple inverse gravity process (the light portion being the valuable product), with only a small percentage of the graphite being finer than 100 mesh (100 mesh). First results should be available around mid-May, 2018.

Lac Gueret South zone 1

Lac Gueret South is located in Cote Nord, Que., a three-hour drive from Baie-Comeau in an area with very good infrastructure. The project lies directly south of Mason Graphite's advanced Lac Gueret project. Mason is developing one of the largest medium- to high-grade graphite deposits in the world.

Including the phase 3 campaign, the company has drilled 27 holes on zone 1 that total 4,006 m. The company is pleased to announce it has intersected visual graphite in every hole drilled to date, with significant Cgr intercepts being observed in 26 holes. Success in these drill programs confirms that a significant component of the distinct electromagnetic conductors that occur over a two-kilometre strike length and 50 metres to 600 metres in width as defined by airborne EM geophysics (see the Berkwood news release dated Feb. 10, 2015) includes graphite mineralization.

Edward Lyons, PGeo (British Columbia, Quebec, Newfoundland), is a qualified person under the definition of Canadian National Instrument 43-101, and has approved the technical information in this news release. Mr. Lyons has worked extensively on the Lac Gueret property, now owned by Mason, and neighbouring graphite properties since 2000.

About Berkwood Resources Ltd.

Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools. The company is led by a team with collectively over 100 years experience and the members of which have been involved with the discovery of several producing mines.

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