Berkwood Reports Excellent Results from Purification (99.95%) and Expandable Graphite Tests

Figure 1: Close up view of Berkwood’s Expanded Graphite (“graphite worms”)

Vancouver, August 27th 2019 — Berkwood Resources Ltd. (TSX-V: BKR; Frankfurt:BR2N – WKN: A2DNV4) (“Berkwood” or the “company”) is pleased to announce excellent results from recently completed testwork conducted by ProGraphite GmbH (“ProGraphite”) in Germany. Berkwood has commissioned ProGraphite to test the company’s high-grade flake graphite concentrate from the Lac Guéret South deposit in Northern Quebec, Canada for the production of purified and expandable graphite.

The company ProGraphite GmbH offers professional expertise and a wide range of laboratory services in natural graphite. ProGraphite’s laboratory expertise is well recognized in the industry for the determination of flake graphite qualities specific to various end uses. For more information about ProGraphite, please visit: www.pro-graphite.com

The main findings of ProGraphite are:

  • The size distribution of the flake graphite in the concentrate shows a coarse flake size, above market standard (based on the two screened samples “Berkwood 20×50” and “Berkwood 50×100”).
  • Graphitic carbon grade of the tested graphite samples is above 98% Cgr.
  • The tested material is very suitable for the production of expandable graphite. Expansion rates of 380 ml/g (H2O2 method) and 390 ml/g (KMnO4 method) have been achieved easily.
  • The carbon content obtained after a standard alkaline purification process was 99.95%.

Tom Yingling, President and CEO states: “We are very pleased with these excellent testwork results from ProGraphite. This report is one of the final pieces of the puzzle that was crucial for Berkwood. The Company knew we have high-grade graphite and large flakes. From the recently announced NI 43-101 resource estimation report, we knew that Berkwood has a substantial amount of it and it is right on surface. One of the last pieces of the puzzle we needed to know was if the graphite is able to be expanded, and, can it be done so very easily using standard methods. Today I am pleased to announce that Berkwood’s graphite is expandable. Another significant result is the fact that our graphite concentrate can be easily purified to 99.95%. For Berkwood, this opens up the opportunity to sell our graphite flakes into a wide range of standard and value-added graphite markets.”

Based on these encouraging results, ProGraphite draws the following conclusion and recommends further tests: “The results of the production of expandable graphite using both, KMnO4 or H2O2 as oxidation reagent, showed excellent results with expansion rates well above 350 ml/g. The testwork was done using standard formulations. It is probable, that changes of process parameters (like amount of acids, change of retention time etc.) and perhaps the usage of additional chemicals will lead to even higher expansion rates. ProGraphite recommends to perform further tests for verification. Alkaline purification of the graphite showed excellent results as well. The carbon content obtained after a standard alkaline purification process was 99.95%, which is a very good result.”

Figure 2: Intercalation process and expansion of natural flake graphite

What is Expandable Graphite?
Due to the layered structure of highly crystalline natural flake graphite, it is possible to insert molecules between the carbon layers. During this process which is named intercalation, the expanded graphite material takes on new properties. Intercalated graphite flakes with outstanding expansion rates have a high amount of intercalated layers. Most commonly, sulphuric or nitric acid are used as intercalation agents. Under the influence of high temperatures and within several hours, the carbon layers separate and small, several millimetres large “graphite worms” show up. The result is a significant increase in the volume of the graphite of up to 375 times, an overall decrease in bulk density and an approximately a 10-fold increase in surface area.

Uses of Expandable Graphite
The worldwide market for expandable graphite is one of the fastest growing markets along with Li-Ion batteries. Over the last couple of years the market has experienced significant price increases. Expandable graphite can be used in many applications including:

Flame retardant
Thermal management in consumer electronics
High end gaskets that are heat and corrosion resistant
Flow batteries and fuel cells
Electrically conductive fillers
Coatings
Automotive Industry
Aerospace
Energy Storage
Wind Energy
Compound Semiconductors
Other products

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 200 years experience and whose members have been involved with the discovery of several producing mines.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740
www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management.  Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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TSX approves new claims

August 22, 2019 – Berkwood Resources Ltd. (TSX-V: BKR; FSE: BR2N) is pleased to announce TSX-V approval has been granted to the Company acquiring six (6) selected groups of claims consisting of 58 claims covering 3,116 Ha adjacent to its Lac Guéret South project. The Company now holds a 100% interest in the property. These six groups of claims occur either directly adjacent to or within a few kilometers 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 comprised the payment to the Vendors of $11,500 and the issuance of 1,950,000 common shares.

Lac Guéret South Property, Quebec

Lac Guéret 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 (TSX-LLG) advanced Lac Guéret Project to the South. With a market capitalisation 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 Guéret South’s Zone 1

Two distinct electromagnetic conductors appear to occur over a two kilometer length and 50 meters to 600 meters in width as defined by airborne EM geophysics (see the Berkwood news release dated February 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 meters length and up to a 300 meters width. This western area is now recognised to comprise a significant graphite zone interlayered within the hinge of a complex fold. The apparent fold limbs thin to some 50 meters in width further 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 % Cgr and 1,526,400 tonnes in inferred resources at 16.39 % Cgr (refer NR of June 16th, 2019).

Financing

The Company also announces it has closed a private placement as to the issuance of 600,000 common share at $0.05. The use of proceeds will be for working capital. No finder’s fee was paid. The shares will be issued having a four month plus one day hold period.

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.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

Signed: “Thomas Yingling”

Thomas Yingling,
President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740
www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management.  Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Berkwood files robust pit constrained mineral resources at its Lac Guéret South Project on SEDAR

Vancouver,  August 19th, 2019 –Berkwood Resources Ltd. (TSX-V: BKR) is pleased to announce the filing of a pit-constrained Mineral Resource Estimate technical report regarding its Lac Guéret South Project.  The final edits and assembly of the report show no material differences between the earlier news release and the final, full version of the report filed on SEDAR. 

The maiden Mineral Resource Estimate for Lac Guéret South, Zone 1, is summarized in Table 1 (with annotation). The Mineral Resource Estimate is based on drilling campaigns in 2017 and 2018 totalling 6,232.49 meters.

Table 1:  Base Case Pit-Constrained Mineral Resource Estimate at the Lac Guéret South Project1

Mineral Resource Category

Current Resource (June 2019)8

Tonnage (Mt)5,7

Grade (% Cgr)4

Cgr (t)6

Indicated

1.76

17.00

299,200

Inferred3

1.53

16.4

250,200

Notes:

  1. The mineral resources provided in this table were estimated using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definition and Guidelines.
  2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional trenching and/or drilling will be required to convert Inferred and Indicated Mineral Resources to Indicated and Measured Mineral Resources.
  3. Inferred Mineral Resources represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral Resource to Indicated or Measured Mineral Resources/Reserves.
  4. All assays used for the Resource Estimates were performed by MS Analytical in Langley, BC with verification samples analysed at ALS-Laboratory at Burnaby, BC for graphitic carbon (“% Cg”), internal analytical code SPM-140 and GE_CSA05V respectively.
  5. Current Resource effective June 30, 2019.
  6. No recovery was applied in the calculation of tonnage of graphitic carbon (90% recovery was applied in pit optimization to define pit constrained mineral resources).
  7. The Current Mineral Resources are stated at a cut-off grade of 6.81% Cgr.

Tom Yingling President and CEO states: “Berkwood has reached a significant milestone at our Lac Guéret South project with the definition of a significant pit constrained mineral resource.  With this new data Berkwood has started the process of the permitting in order to permit forest logging in the area of a potential pit and to allow for stripping and bulk sampling at surface. This resource presents sufficient size and grade for the Company to move forward with immediate next step plans, as this maiden resource compares favourably with other developed and in-development projects. We are confident Lac Guéret South will figure into the emerging Lac Guéret graphite production camp in the near future. Our exploration and metallurgical work has received an enthusiastic reception among long-run graphite buyers and financiers, and we have embarked upon a program of resource expansion in the local area. We will immediately refine our current resource and increase our knowledge on the quality and size of the deposit and adjacent deposits which we expect will further add to our resource base.”

Edward Lyons, PGeo (BC,QC,NL) states: “The results of the initial resource estimate and metallurgical testwork demonstrate that the Zone 1 deposit as tested to date has substantial resources and robust recoveries, subject to further testing. The deposit has not been closed off in the lateral extents and the several geophysical surveys suggest that the shallower mineralisation continues around the western fold hinge. The strike length has the potential to significantly increase resources with future development drilling. The Zone 2 target now in an early exploration stage, may add mineralisation as well.”

Table 2:  Current Resource Pit Envelope Characteristics

Characteristics

Main

Layer 01

Length (m)1

290

340

Azimuth (⁰)

80

42

Maximum width (m)

130

35

Surface Area (km2)

0.13

  1. Measured length is approximate.

Data Sources and Current Resource Estimation Methods

The block model used to generate this Resource is based on a total of 45 diamond drillholes and two trenches for a total of 6,232.49 metres and 77 metres of trenches with 1194 samples and 28 samples collected from trenches.

The present Resource block model was prepared under supervision of Claude Duplessis, P.Eng. of GoldMinds Geoservices Inc. of Québec City, QC using Genesis© mining software. The block model estimate was performed using interpolation according to the inverse of the distance from nearest composites and the ellipsoid influenced distance in calculation which were adapted for the geology of the deposit by application of  the variable direction search ellipsoid special tool in Genesis software for folded deposits.

The block size has been defined in order to respect the complex geometry of the envelopes. The mineral resource estimate was carried out with a block size of twenty-seven cubic meters (3m (EW) x 3m (NS) x 3m (Z)). The density to convert volume to tonnage used is 2.9.

The envelopes have been filled by regular blocks and only sample composites within the envelopes were used to estimate the block grades. This represents a total of 3,015 sample composites.

The average percentage carbon (% Cgr) was calculated using interpolation according to the inverse of the distance from nearest composites and the ellipsoid influenced distance in calculation. Interpolation parameters were based on drill spacing, envelope extension and orientation.

Different numbers of runs and ellipsoid dimensions were used depending on the envelope. Two runs were used in envelope “Main” and only one run was used in each remaining envelopes (Layer 01, Layer A and Layer B), for the mineral Resource Estimate (see ellipsoids parameters in Table 3).

Specifically, run parameters were as follows: Main envelope: In run one (1), the number of composites is limited to nine (9) with a minimum of three (3) per block and a maximum of two (2) composites from the same drillhole. For run two (2), the number of composites was limited to nine (9) with a minimum of three (3) and no limit number composites per drillhole. For Layer 01, Layer A and Layer B: One run was executed with the number of composites limited to nine (9) with a minimum of three (3) per block and a maximum of two (2) composites from the same drillhole.

Table 3:  Variable Search Ellipsoid Parameters

Ellipsoids Parameters

Main Pass01

Main Pass02

Layer01

Layer A

Layer B

Azimuth

80

80

50

50

50

Dip

0

0

0

0

0

Spin

5

5

35

35

35

Major

30

40

30

10

15

Median

40

60

40

15

15

Minor

10

15

10

5

5

Within the folded or faulted nose of the Main envelope, a variable ellipsoid was used in the estimate, as Genesis software (chosen specifically for its features) has the capacity to search along complex planes.

The classical method of distance and composites within the search ellipsoid was selected to classify the deposit where one defined class is used by ellipsoid. A total of two ellipsoids and two runs were applied. Two runs were performed for the Main envelope (indicated and inferred) and one run was done for each envelope Layer 01, Layer A and Layer B (inferred).

The block model was afterward processed in MineSight software to provide an optimized pit envelope constraining the mineral resources (see Table 4 below). The technical and economic parameters used to generate the pit shell envelopes are listed in the Table 5 below. The base case is in bold.

The resource shell parameters were derived from comparable graphite projects in the region and preliminary metallurgical testing done at Met-Solve Laboratories of Langley, British Colombia in Item 13 of the filed NI 43-101 report presenting similar results aligned with adjacent project. Duplessis elected to apply a conservative recovery of 90% as additional metallurgical testing is required to better define the flake class and so to constrain the price point values of the eventual saleable products.

Table 4  Pit optimization Results (rounded)

Optimised Pit.

Mineral Resource

Waste(*)

Stripping Ratio

Indicated

Inferred

Tonnes

Cg (%)

Tonnes

Cg (%)

Tonnes

 

Pit 01

998 600

21.50

424,300

23.01

5,520,800

3.87

Pit 02

1,161,300

20.21

730,800

20.96

8,371,100

4.42

Pit 03

1,349,900

19.02

908,900

19.42

9,921,600

4.39

Pit 04

1,474,900

18.19

1,042,400

18.46

10.730,700

4.26

Pit 05

1 648 800

17,35

1,349,400

17.05

14,229,900

4.74

Pit 06 (base Case)

1,755,300

17.00

1,526,400

16.39

16,774,000

5.11

Pit 07

1,816,800

16.73

1,793,800

15.49

19,592,000

5.42

(*) “waste” here is not waste but is considered to be material which is not economic at the time of this pit optimization.

Table 5: Current Resource Shell Envelope Generation Parameters Base Case ($CDN)

Parameters

Values

Mining Cost

6 $/t

Transport

36 $/t

Processing

40 $/t

G & A

10 $/t

Recovery

90 %

Selling Price Cg

1,530 $/t

Quality assurance and control were maintained through the systematic use of blank samples (non-graphitic) inserted into the sample sequence every 20th sample as well as duplicate quarter-cut drill core samples. The blank samples consistently returned only trace Cg values. The duplicate sample results closely repeated the comparison sample analyses on the half-core, though there is typically some variation in grade owing to the lower material volume in quarter-cut core vs. half-core, in addition to the local variations in Cg at decimeter scale. Fifty (50) samples selected by Lyons were taken from the original rejects at MS Analytical and one-kilogram riffle-split coarse reject material was delivered to ALS Laboratory for analyses that closely followed the original methods used by MS Analytical. These had a close correlation, and the authors of the report are confident that the original assays are representative of the samples assayed.

The database was reviewed by Lyons and GoldMinds. Several errors were discovered and resolved, and the final database included the corrections.

The technical data included in this release was prepared by qualified independent experts, as defined by NI 43-101 Regulation, including Claude Duplessis Eng., of GoldMinds Geoservices Inc. (resource estimation), Edward Lyons PGeo (BC, QC,NL) of Tekhne Research Inc. (senior author and most of the report), and Florent Baril, Eng. of Bumigème Inc. (mineral processing and metallurgical testing).

Berkwood Resource Ltd has finalising the independently prepared Mineral Resource Estimate technical report, in accordance with the National Instrument (NI) 43-101, detailing this important work, and the report is now filed on SEDAR at www.sedar.com .

Edward Lyons PGeo (BC, QC, NL) is the Qualified Person under the definition of Canadian National Instrument 43-101 for Berkwood Resources and has approved the technical information in this news release. Ed has worked extensively on the Lac Gueret Property, now owned by Mason Graphite, and on 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 200 years experience and whose members have been involved with the discovery of several producing mines.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740
 www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management.  Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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NI 43-101 Resource

Berkwood to present at the International Graphite 2019 Conference in Berlin CLARIFICATION of News Release Dated August 16th, 2019

August 19th, 2019 Berkwood Resources Ltd. (TSX-V: BKR; FSE: BR2N) would like to clarify the meaning of “estimated market value” stated in the news release dated August 16th, 2019.

The underlying assumption of US$1500 per tonne used in the mineral resource estimate reflects a value to establish reasonable prospects of eventual economic extraction and does not reflect current market value of the mineralization.

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 200 years’ experience and whose members have been involved with the discovery of several producing mines.

Edward Lyons PGeo (BC, QC, NL) is a Qualified Person under the definition of Canadian National Instrument 43-101 and has approved the technical information in this news release.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740
www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management.  Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Berkwood to present at the International Graphite 2019 Conference in Berlin

August 16th, 2019 Berkwood Resources Ltd. (TSX-V: BKR; FSE: BR2N) is pleased to announce that it will be attending the International Graphite 2019 Conference in Berlin September 10 – 11, 2019. This is a very significant, and highly attended conference as it connects producers with purchasers and consumers from across the natural and synthetic graphite markets. Its attendees are some of the world’s largest buyers, consumers and traders of Graphite. In addition, Berkwood’s management will hold a speech to the attendees from all over the world to showcase the Company’s recently announced 43-101 resource estimate for the Lac Gueret graphite deposit in Northern Quebec, Canada.

Berkwood is pleased to announce at the conference that, to date, we have 549,200 tonnes of contained Graphite, as to Indicated 299,200 tonnes and Inferred 250,000 tonnes with an estimated market value of U.S. $1,500 per tonne as used in the NI 43-101 mineral resource estimate. The Company has only explored about 20 percent of the Zone 1 anomaly and has recently added numerous additional historical high-grade graphite outcrops to add to its land package which are currently being resampled.

Please follow the link below for more details on the conference:

https://www.metalbulletin.com/events/graphite-conference/sponsors.html

Berkwood has a high-grade graphite NI 43-101 resource located in Quebec, Canada and is now looking for a joint venture partner and/or offtake agreement(s).  The company has made this significant graphite discovery right next door to Mason Graphite’s mine which is currently being built. Berkwood Resources was successful in hiring members of the technical team that were responsible for developing Mason’s project and so far the team is repeating this success on Berkwood’s lands. The company is led by a team with collectively over 200 years of experience and whose members have been involved with the discovery, development, construction and operation of several producing mines. Berkwood’s management plans on partnering up with a key partner(s) to do it again.

The Company is undertaking a non-brokered financing of up to $100,000 with shares to be issued at $0.05. The financing is subject to TSXV approval. Proceeds of the Placement will be used for general working capital. Finder’s fees may be payable subject to exchange approval.

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 200 years’ experience and whose members have been involved with the discovery of several producing mines.

Edward Lyons PGeo (BC, QC, NL) is a Qualified Person under the definition of Canadian National Instrument 43-101 and has approved the technical information in this news release. Ed has worked extensively on the Lac Guéret Property, now owned by Mason, and neighbouring graphite properties since 2000.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations:
info@berkwoodresources.com or 1-604-343-7740 www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Berkwood acquires additional surface graphite properties.

Video Link: https://youtu.be/8wd0upCady8

August 7th, 2019, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2, WKN: A110N3) (“Berkwood” or the “Company”) is pleased to announce that it has acquired additional ground adjacent to its Lac Guéret 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 to 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, an ongoing field sampling campaign will immediately sample selected areas of the newly acquired tenement.

The newly acquired land title comprises six (6) selected groups of claims consisting of 58 claims covering 3,116Ha. Berkwood holds a 100% interest in the properties, following their acquisition from 1215616 BC Ltd., a Company held by Contigo Resources Ltd (“Contigo”) and Graeme Sewell (“Sewell”, together, “the Vendors”). These six groups of claims occur either directly adjacent to or within a few kilometers 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 1,950,000 common shares of Berkwood, wherein $10 and 450,000 shares are paid to Contigo and $10 and 1,500,000 shares are paid to Sewell.

The ongoing 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% Cgr 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 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 Guéret South Property, Quebec

Lac Guéret 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 (TSX-LLG) advanced Lac Guéret Project to the South. With a market capitalisation 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 Guéret South’s Zone 1

Two distinct electromagnetic conductors appear to occur over a two kilometer length and 50 meters to 600 meters in width as defined by airborne EM geophysics (see the Berkwood news release dated February 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 meters length and up to a 300 meters width. This western area is now recognised to comprise a significant graphite zone interlayered within the hinge of a complex fold. The apparent fold limbs thin to some 50 meters in width further 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 % Cgr and 1,526,400 tonnes in inferred resources at 16.39 % Cgr (refer NR of June 16th, 2019).

Tom Yingling, President and CEO states, Berkwood is in the process of demonstrating a viable conceptual hub resource location at its Zone 1, Lac Guéret 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 (BC, QC, NL) is a Qualified Person under the definition of Canadian National Instrument 43-101, and has approved the technical information in this news release. Ed has worked extensively on the Lac Guéret 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.

On Behalf of the Board of Directors

Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740     www.berkwoodresources.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management.  Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

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