Berkwood Discovers 3 Large Graphite Outcrops and Completes Phase 4 drilling

Suite 3204 – 610 Granville Street

Vancouver B.C. V6C 3T3

Phone: (604) 343-7740

email: [email protected]

Website: www.berkwoodresources.com

Berkwood Discovers 3 Large Graphite Outcrops and Completes Phase 4

drilling

January 16th, 2018, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2,

WKN: A110N3) (“Berkwood” or the “Company”) is pleased to announce that drilling at its Phase 4

definition drilling program on Zone 1 at the Company's 100% owned Lac Guéret South Project is

complete. The Program was designed to extend eastward, and to infill drill portions of the current

mineralization model. During the Phase 4 program Berkwood has drilled sixteen (16) new NQ diameter

diamond core holes for 2,078 m of newly acquired, to bring the total drilling at Zone 1 to 5,940 m over 43

drill holes. The Company is very pleased to announce that while moving the drill from one drill pad to

another three large Graphitic outcrops were discovered, one of them over 60 meters in length. The

Company collected saw-cut surface channel samples on two of these outcrops to enhance the geological

model.

To view a NEW Video of the Phase 4 drill program please visit :

https://player.vimeo.com/video/311334010

Figure #1 Aerial view of Lac Gueret and three large Graphite outcrops

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Figure #2 view of Graphite outcrop, measured over 60m long

Figure #3 Clearing snow off outcrop 1 for channel sampling

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Figure #4 Graphite Rock Sample

Berkwood has completed the logging, and the sampling and storage of core. Four hundred fifty eight

(458) samples (approximately 2,050 kg), including the outcrop channel samples, have been received by

MS Analytical Laboratories in Langley, BC for analyses using the same analytical procedures applied to

the samples from previous programs. The Company has continued its practise of inserting field 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 barren material cleaning between samples to reduce any potential for cross-contamination.

The Phase 4 program benefitted from the Mise-Á-La-Masse ( “MALM”) geophysical program as

described in a News Release of December 13th, 2018.

“We’re pleased to have completed Phase 4 by the start of 2019 and even more pleased to have exposed 3

very Large Graphite outcrops. Having Graphite at surface improves the economics significantly as it

means that if we go into production the very first shovel in the ground makes money without the expensive

and timely need to remove large amounts of waste rock, ” states Tom Yingling, President and CEO. “ I

want to wish all our supporters and shareholders a prosperous New Year, and to thank them for their

support through 2018. The Phase 4 campaign will enable our deposit model to be improved to support

preparation of a preliminary resource statement. In the event that we require more drilling to achieve

this goal, we are fully financed to complete another drill program.”

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The Phase 4 drill program was supported by QC-based drilling and project management companies, and

project and camp support personnel from the Project area. The drill program was updated with near-real

time interactive updates to the geology, structure, and mineralization model by frequent data transmission

to Tony Gilman of Terrane Geosciences (structural modeling) and Michael Waldegger of MFW

Geosciences (resource estimate), to ensure that the Phase 4 work informed real time model evolution and

maximised the effectiveness of drill targeting.

The Integrated Team will utilize the Phase 4 data to extend and improve the geological model with a view

to constraining Mineral Resource estimation requirements in the near term.

Lac Gueret South, Zone 1

Lac Gueret South is located in Cote Nord, eastern Quebec, a three-hour drive north from Baie-Comeau in

an area with very good infrastructure. The Project lies directly south of Mason Graphite's (TSX-LLG)

advanced Lac Gueret Project. Mason is developing one of the largest medium- to high-grade graphite

deposits in the world.

The project comprises 288 Claims which cover a total area of 15,552 hectares. Prior to commencement of

the current Phase 4 campaign, the Company has drilled 27 holes on Zone 1 that totals 4,006m. The

Company is pleased to announce it has intersected visual Graphite in every hole drilled to date. Success in

these drill programs confirms that a significant component of the distinct electromagnetic conductors that

occur over a two kilometer strike length and 50 meters to 600 meters in width as defined by airborne EM

geophysics (see the Berkwood news release dated February 10, 2015) that includes graphite

mineralization.

To view virtual reality video from earlier drill programs and to view the geological model as visualised

following the completion of the Phase 3 drill program, please follow the link at the bottom of our home

page http://www.berkwoodresources.com and to view project pictures please visit:

https://berkwoodresources.com/projects/lac-gueret-extensions-graphite-project-quebec-canada/ .

Edward Lyons PGeo (BC, QC, NL ) is a Qualified Person under the definition of Canadian National

Instrument 43-101, and he has approved the technical information in this news release. Ed has worked

extensively on the Lac Gueret Property, now owned by Mason, and neighbouring graphite properties

since 2000.

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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. The Company is

particularly pleased to have partnered with QC-focussed entities for the financial support of the Lac

Guéret South Project.

On Behalf of the Board of Directors

Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations:

[email protected] or 1-778-945-2935 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 (“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.