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WKN: A110N3 August 16thth, 2017 Berkwood Commences Drill Program at Lac Gueret South Graphite Project

Exploration Programs

TSX-V: BKR

FSE: BR2

WKN: A110N3 August 16thth, 2017

Berkwood Commences Drill Program at Lac Gueret South Graphite Project

August 16 th, 2017, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX -V: BKR , FSE: BK2, WKN:

A110N3) (“Berkwood” or the “Company”) is pleased to announce that drilling has commenced on its

Lac Gueret South Graphi te 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 initi al 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 60m and 120m in length)

in this initial phase of work . The amended exploration permit approval to start drilling on 16 August 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, Quebec, a three hour drive from Baie -Comeau in an area of

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 high grade graphite deposits in the world.

In 2014, Berkwood conducted an electromagnetic (“EM”) 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 . H owever, the Zone 1 and Zone 2 anomalies are of significantly larger size and are

considered high priority targets for immedia te exploration by drilling and trenching. These large

anomalous conducive areas are almost entirely covered by muskeg and till with few bedrock outcrops

available property-wide.

Lac Gueret South 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 an d 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 interpreted as a potential bulk graphite zone

interlayered within the hinge of a complex fold. The limbs thin to 5 0 meters 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%, 14.4%, and 1.04% 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.

2

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 1

kilometer in length and 60 meters in width.

To view details, maps and photos of Berkwood’s properties please click the following link:

http://www.berkwoodresources.com/properties.html. The program is being undertaken subject to two

current drilling permits issued by regulators in Quebec.

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. 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,

Ontario using a LECO furnace and an infrared detector.

Tom Yingling, President and CEO states, “ 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 the Company: 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchang e)

accepts responsibility for the adequacy or accuracy of this

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.