Mr. Thomas Yingling reports

BERKWOOD ACQUIRES ADDITIONAL SURFACE GRAPHITE PROPERTIES

Berkwood Resources Ltd. has acquired additional ground adjacent to its Lac Gueret South project as it has determined that a long-term graphite production strategy is best served by evaluating multiple proximally located bedded graphite deposits (comparable with its centrally located zone 1 project) to feed a future, centrally located processing facility. The model is amenable to graphite production from multiple shallow, low-strip-ratio open-pit mining locations surrounding the company's existing project.

To advance the current project model the company has acquired six new blocks of claims and has further assessed the historic sampling of known graphite exposure on ground currently held. The review isolated a number of high-priority targets, some of which have returned high-grade samples during previous work by the SOQUEM-Quinto joint venture, Esbec, Mason Graphite and Focus Graphite. Concurrent with the acquisition, a continuing field sampling campaign will immediately sample selected areas of the newly acquired tenement.

The newly acquired land title comprises six selected groups of claims consisting of 58 claims covering 3,116 hectares. Berkwood holds a 100-per-cent interest in the properties, following their acquisition from 1215616 BC Ltd., a company held by Contigo Resources Ltd. and Graeme Sewell. These six groups of claims occur either directly adjacent to or within a few kilometres of Berkwood's existing claims, and each has either known graphite showings or geological extensions of known graphite-bearing formations over which geophysical conductive anomalies have been surveyed.

Consideration for the acquisition of the new claims comprises the payment to the vendors of $20 and 1.95 million common shares of Berkwood, wherein $10 and 450,000 shares are paid to Contigo and $10 and 1.5 million shares are paid to Sewell.

The continuing sampling and shallow geophysics program will focus on high-priority targets on the newly acquired claim blocks with immediate effect. Among the targets is zone 06, where previously reported surface samples of high-grade graphite (maximum of 41.1 per cent graphitic carbon in a single sample) were recorded by previous workers. The target zone locations being prospected are ranked on the strength of airborne geophysical anomalies (2003 regional GeoTEM time domain EM (electromagnetic) survey and 2012 airborne magnetics flown by government), proximity to the core zone 1 project and ease of access to each location.

The current program accesses the projects using existing roads and forest trails, and excludes further access development as part of the present program.

Lac Gueret South property, Quebec

Lac Gueret South is located in Cote Nord, Quebec, a three-hour drive from Baie-Comeau, in an area of very good infrastructure. The project directly borders Mason Graphite's advanced Lac Gueret project to the south. With a market capitalization of over $40-million Mason owns one of the largest high-grade graphite deposits in the world and is planning on building a new graphite mine and processing plant.

Lac Gueret South's zone 1

Two distinct electromagnetic conductors appear to occur over a two-kilometre length and 50 metres to 600 metres in width as defined by airborne EM geophysics (see the Berkwood news release dated Feb. 10, 2015). The western part of this zone was further defined by ground VLF (very low-frequency) and EM surveys: Four VLF and 22 contiguous PhiSpy EM conductors have been detected over an apparent 800 m length and up to a 300 m width. This western area is now recognized to comprise a significant graphite zone interlayered within the hinge of a complex fold. The apparent fold limbs thin to about 50 metres in width farther to the east.

Four separate drill programs have been executed on the western extent of Berkwood's zone 1 graphite body for a total of 45 holes and 6,091.7 m completed between August, 2017, and December, 2018. One hole of 6.1 m was incorrectly collared and did not intersect graphite. The company intersected visual graphite in every other hole drilled (44), with significant Cgr (carbon as graphite) intercepts being observed in 41 holes. These programs have provided the data and assays for completion and announcement of an in-pit-constrained resource totalling 1,755,300 tonnes of indicated resources at 17.00 per cent Cgr and 1,526,400 tonnes in inferred resources at 16.39 per cent Cgr (refer to news release of June 16, 2019).

Tom Yingling, president and chief executive officer, stated: "Berkwood is in the process of demonstrating a viable conceptual hub resource location at its zone 1, Lac Gueret South prospect location. The coarse nature of the naturally occurring graphite, and the compelling reported resource, has stimulated our determination to rapidly locate and evaluate certain nearby zones of zone 1 lookalike graphite occurrences. By acquiring property which hosts additional known surface-exposed graphite proximal to our existing ground, we substantially increase the number of prospects that could support our hub-and-spoke mining feed model, which envisions an integrated graphite production scenario that depends upon shallow production from multiple podiform deposits. The model offers maximum optionality in production scheduling and extended resource life to build upon our recently reported zone 1 resource."

Edward Lyons, PGeo (B.C., 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 of experience and whose members have been involved with the discovery of several producing mines.

We seek Safe Harbor.