Mr. Thomas Yingling reports

BERKWOOD COMMENCES DRILL PROGRAM AT LAC GUERET SOUTH GRAPHITE PROJECT

Berkwood Resources Ltd. has commenced drilling on its Lac Gueret South graphite project located in Quebec. The company has completed certain access development for its initial group of targets and drill pads have been prepared for the initial suite of targeted PhiSpy conductive anomalies, located in the zone 1 area (refer location descriptions below). The company anticipates completing up to 18 inclined drill holes (of between 60 metres and 120 m in length) in this initial phase of work. The amended exploration permit approval to start drilling on Aug. 16 has been received. A drill is on site ready to commence on that date. The amended permit allows for a multiphase exploration program without delays at each stage.

Lac Gueret South property, Quebec

Lac Gueret South is located in Cote Nord, Que., a three-hour drive from Baie-Comeau in an area of very good infrastructure. The project lies directly south of Mason Graphite's advanced Lac Gueret project. Mason is developing one of the largest high-grade graphite deposits in the world. In 2014, Berkwood conducted an electromagnetic airborne geophysical survey over its South Lac Gueret property and successfully identified several anomalous zones of high conductivity. Several of these anomalies were downgraded as they are considered too small or too deep to represent economic graphite deposits. However, the zone 1 and zone 2 anomalies are of significantly larger size and are considered high-priority targets for immediate exploration by drilling and trenching. These large anomalous conducive areas are almost entirely covered by muskeg and till with few bedrock outcrops available propertywide.

Lac Gueret South 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 Berkwood news release dated Feb. 10, 2015). The western part of this zone was further defined by ground VLF 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 interpreted as a potential bulk graphite zone interlayered within the hinge of a complex fold. The limbs thin to 50 m in width as the zone extends eastward. A total of 11 rock grab samples were collected in the vicinity of the zone 1 anomaly: Three of these samples contained 36.3 per cent, 14.4 per cent and 1.04 per cent Cgr (carbon as graphite) respectively. The presence of significant values of carbon as graphite found in the vicinity of these mainly covered large geophysical anomalies is interpreted to indicate that the anomalies are probably large graphite zones.

Lac Gueret South zone 2

Zone 2 is contiguous with the southern limit of the Mason Graphite claim boundary and along strike from the graphite zones of Mason Graphite. A total of two VLF-EM and 15 PhiSpy ground geophysical anomalies confirm the occurrence of two parallel east-west conductors. The larger conductor extends one kilometre in length and 60 m in width.

To view details, maps and photos of Berkwood's properties please visit the company's website. The program is being undertaken subject to two current drilling permits issued by regulators in Quebec.

Edward Lyons, PGeo (British Columbia, Quebec, Newfoundland), is a qualified person under the definition of National Instrument 43-101 and has approved the technical information in this news release. He has worked extensively on the Lac Gueret property, now owned by Mason, and neighbouring graphite properties since 2000. The Cgr analyses were carried out and certified by AGAT Laboratories of Mississauga, Ont., using a LECO furnace and an infrared detector.

Tom Yingling, president and chief executive officer, stated: "I am pleased we have embarked upon our planned drill program. This test has targets an extensive and very compelling conductive zone, in a district in which the world-class Mason graphite deposit is now in development."

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 materials that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components in the new suite of innovative tools. The company is led by a team with collectively over 100 years experience and have been involved with numerous discoveries of producing mines.

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