Mr. Thomas Yingling reports

BERKWOOD REPORTS ITS 3RD DRILL PROGRAM PRODUCED CONTINUED HIGH GRADE GRAPHITE ASSAYS WITH 17.37% CGR OVER 130.55M

Berkwood Resources Ltd. has provided the assay results from the phase 3 drilling program on the zone 1 graphite body at the company's 100-per-cent-owned Lac Gueret South project. A total of nine HQ diamond drill holes were drilled in the phase 3 drill program with every hole intersecting visible graphite (as per the news release dated April 26, 2018). Of the nine holes drilled, eight of them intersected significant mineralization with one hole having 17.37 per cent Cgr over 130.55 metres with a true thickness of 87.5 m. As per the attached table, graphite assay grades have been returned as high as 33.88 per cent. This combined with BK1-15-17 from phase 1 drilling of 72.10 m at 13.64 per cent Cgr and multiple other wide intersections indicates a large unique discovery.

Three separate drill programs have been executed on Berkwood's zone 1 graphite body for a total of over 4,000 m completed. All 27 holes have mineralization and 26 holes of these have intersected significant graphite.

These intercepts support an evolving structural model of multiple recumbently folded horizon(s) hosting thicker and more consistent graphitic intervals of high-grade and wide true thicknesses that suggests strong continuity in the system. On the company's airborne EM anomaly, the company has drilled an area about 300 m by 300 m, leaving an large anomalous area that is still as yet untested by drilling.

The inclined holes were drilled to maximum lengths of about 190 metres. The graphite lies near surface to open-pit minable depths similar to the depths drilled by Mason Graphite for its planned open-pit development.

Edward Lyons, PGeo (British Columbia, Quebec, Newfoundland), states: "With the 130 m intercept near surface and a length-weighted composite grade of 17.37 per cent Cgr, the phase 3 drill program represents a success. The importance of the thinner intersections is that they can mark the edges of thicker beds of graphite. Industry and metallurgical experience in highly metamorphic graphitic rocks has shown that the medium and lower graphite grade material can yield higher percentages of coarse flake graphite recovery, making these units potentially of similar economic value. The true widths and persistence of graphite in almost all of Berkwood's drill holes to date show the potential of the zone 1 anomaly."

The discovery is eight kilometres southwest of Mason Graphite's deposit, which has a National Instrument 43-101 feasibility study. The company shares a similar structure with one of the highest-grade graphite deposits in the world. Mason is concluding its permitting process to start development in 2018. This benefits Berkwood's project as all the infrastructure is, or should be in place, once the company's neighbour goes into production.

Tom Yingling, president and chief executive officer, notes that the increasing demand for graphite is reflected in part by the following:

• Governments are mandating that automobile manufacturers build and sell electric vehicles. This is good news for the EV industry and keeps the demand high for elements that go into batteries. Graphite is commonly the most prolific element in a battery.
• China is pushing for aggressive new ZEV mandate: 8 per cent of new cars to be electric by the end 2018 and 12 per cent by 2020.
• France, Britain, Germany, Norway, Austria, Denmark, Ireland, Japan, Netherlands, Portugal, Korea and Spain have set official targets for electric car sales. The United States does not have a federal policy, but at least eight states have set out goals (California, Colorado, Illinois, Massachusetts, New Mexico, New York, Vermont and Washington).
• A global shift away from fossil fuels is contributing to graphite's success as it is a critical part of the expanding lithium-ion battery sector.
• With graphite as an integral material in the construction of everything from nuclear power plants to smart phones, the material's viability as an investment has never been clearer.

                                         Sample       True
                     From         To     length  thickness       Cg %
DDH ID                 (m)        (m)        (m)        (m)**     avg.

BKI-19-18           35.20      44.88       9.68        9.1      24.85
BKI-20-18           15.20      20.61       5.41        3.8       6.51
BKI-20-18           43.43      62.33      18.90       14.5      14.28
BKI-20-18           67.25      84.35      17.10       17.2       4.50
BKI-21-18           74.20     112.93      38.73       26.5      17.58
BKI-22-18           30.62      50.14      19.52       15.5      22.51
BKI-23-18
BKI-24-18           64.93      70.45       5.52        1.9      13.18
BKI-25-18           18.24     148.79     130.55       87.5      17.37
includes            18.24      47.14      28.90       20.2      24.67
includes            47.14      71.60      24.46       15.7       9.03
includes            71.60      88.39      16.79       13.8      33.88
includes            88.39     113.31      24.92       12.5      18.52
includes           113.31     148.79      35.48       25.3       6.79
BKI-26-18           67.91      76.30       8.39        4.2      14.70
BKI-26-18          128.07     146.08      18.01        9.0      18.37
BKI-27-18           43.55      48.87       5.32        1.8       4.58
BKI-27-18           57.71      72.49      14.78        6.2       6.82
BKI-27-18          119.10     134.11      15.01       11.5      20.58
BKI-27-18          141.21     147.13       5.92        4.5      26.70
BKI-27-18          161.00     182.89      21.89       10.0       4.76

                             DRILL RESULTS FROM ZONE 1

DDH ID             From         To       Sample length       Cg avg.   True thickness**
                    (m)        (m)                 (m)           (%)                (m)

BK1-01-17         40.23      45.00                4.77         28.61               4.48
BK1-01-17         99.48     137.77               38.29         14.68               36.0
includes         101.98     110.19                9.83         29.17                9.2
BK1-02-17         43.05      46.38                3.33         15.16               9.75
BK1-02-17         60.85      80.45               19.60         24.01               15.5
includes          64.38      74.40               10.02         32.95                6.4
BK1-03-17         20.79      47.69               26.90         24.40               26.9
includes          24.28      26.94                2.66         31.08                2.6
includes          34.69      44.06                9.37         35.34                9.3
BK1-03-17         93.40      99.38                5.98         13.11               5.98
BK1-04-17         26.68      79.24               52.56         21.01               40.3
includes          26.68      54.55               27.87         28.38               21.4
includes          69.19      71.71                2.52         31.72                1.9

DDH ID             From         To       Sample length       Cg avg.   True thickness**
                    (m)        (m)                 (m)           (%)                (m)

BK1-05-17          31.4      43.86               12.46         20.72                8.8
includes          36.21      39.41                 3.2         33.69                1.4
BK1-06-17         16.39      28.34               11.95         25.52               22.1
BK1-07-17        112.75     118.61                5.95         10.83                4.4
BK1-08-17        139.42     160.63               17.17         20.04               16.4
includes         150.37     155.83                5.46         31.19                4.5
BK1-08-17        169.83     177.04                7.11         28.02                6.2
BK1-09-17        114.25     142.34               21.33         12.27               18.5
BK1-10-17        133.98     148.75               16.27          9.10               14.1
BK1-11-17         19.84      24.17                4.33         11.39                3.8
BK1-12-17         30.62      33.93                3.31         11.23                2.7
BK1-13-17         38.44      46.59                8.15         19.20                6.9
BK1-13-17         99.64     105.57                5.93         18.84                4.9
BK1-13-17        117.60     120.13                2.53         18.52                2.0

Hold           From (m)     To (m)  Cgr avg. (%)     Sample length (m)        True thickness (m)**

BK1-14-17        19.40      84.09         20.95                 64.69                      20.9
includes         53.99      79.55         37.68                 27.11
BK1-15-17        47.21     129.53         13.64                 74.75                     71.10
includes         47.21      56.43         27.20                  9.22
includes         67.41      81.75         27.52                 14.34
BK1-16-17        18.32      46.66         21.86                 28.34                     26.61
includes         18.32      39.08         29.84                 20.76
BK1-16-17        50.79     125.38         17.34                 74.59                     38.48
includes         50.79      57.91         32.00                 10.17
includes         69.75      87.02         30.75                 17.27
BK1-17-17        47.74     104.32         16.23                 56.58                     43.30
includes         59.90      78.81         26.33                 18.91
BK1-18-17        57.31      70.24         18.58                 12.93                      8.01

BK1-23-18 was drilled across the margin of the anomaly to test the limits of graphite mineralization. No graphite was encountered. Deposit definition will require some tests of the margins in order for the company to design a more efficient drill program. This is typical exploration testing.

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 totals 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.

To view a virtual reality video of the fall phase 1 zone 1 drill program as well as the most recent winter phase 2 drill program, please follow the link at the bottom of the company's home page.

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 the company

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 whose members have been involved with the discovery of several producing mines.

We seek Safe Harbor.