Berkeley Eng Regulatory News (BKY)

25 May 2010

BERKELEY RESOURCES LIMITED

Salamanca Uranium Project

Drilling Update

Berkeley Resources Limited ("Berkeley") is pleased to announce the completion of a second diamond drilling campaign at the Salamanca Uranium Project in Spain which provided material for the metallurgical test work program and added additional confidence to the Mineral Resource Estimates previously reported.

Following the completion of the confirmatory drilling program in March 2010 (see announcement 18th March 2010), drilling continued at the Alameda South and Sageras deposits. A further 7 holes (748m) were drilled at Alameda South and 4 holes (360m) at Sageras. These holes were not included in the recent Mineral Resource Estimates announced on 26th February and 30th March but their e-grades correlate well with the resource models and provide further confirmation of the historical drilling data.

The notable intersections presented in Table 1 are based on down-hole gamma logging undertaken by Berkeley and are shown as equivalent U3O8 ppm grades or eU3O8.

Table 1 - Notable Drill Hole Intersections

A full list of intersections using a 200 ppm eU3O8 cut-off, with a minimum one metre intersection, is included at the end of this announcement in Table 2 and 3.

Berkeley will provide an update on the Metallurgical test work program shortly.

Enquiries - Managing Director: Ian Stalker Tel: +34 608 221 497  

RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881

The Salamanca Uranium Project consists of 4 separate areas containing a number of metasedimentary hosted uranium deposits located in the western part of Salamanca Province, Spain. These deposits are near surface accumulations of open pittable uranium within close proximity to the Quercus uranium ore processing plant.

Berkeley commenced a Definitive Feasibility Study (DFS) in 2009 which is progressing well and on track to be completed in the December 2010 quarter. The study is focused initially on the Águila (Palacios North and Sageras deposits) and Alameda (Alameda South deposit) areas, with possible extension to the Retortillo (Retortillo and Santidad deposits) and Villar areas.

Berkeley commenced diamond drilling in October 2009 with the objectives of confirming the historical data and generating representative samples for tank leach metallurgical testing. In total, 57 holes (5,080m) were drilled at the Palacios North, Sageras and Alameda South deposits. All holes intersected mineralisation consistent with the surrounding historical drilling data. Following the completion of the drilling, initial Mineral Resource estimations were undertaken for each deposit and announced in February and March 2010. In addition, 2 tonnes of diamond core were sent to SGS in Perth for tank leach metallurgical test work. The program is well advanced with initial results released in the March Quarterly Report.

The Scoping Study completed in December 2009, also showed that heap leaching may be a viable option, so drilling has continued at Alameda South and Sageras to acquire more representative material for static leach test work. Samples will be selected during the second quarter and sent to SGS in Perth.

In addition, an RC drilling program is due to commence as soon as permission is received from the Mines Department with 2 drilling rigs at Sageras and 2 at Alameda South. The main objectives of the RC campaign are:

·; To upgrade the current resource classifications from Inferred to Indicated and from Indicated to Measured.

·; To test for lateral and depth extensions of the current resource in areas where recent diamond drilling has shown the deposits are open.

·; To complete sterilization drilling of the area to the north of Sageras where the conceptual waster dump and crushing facility have been located.

·; To test a number of high priority targets identified by surface mapping and ground radiometrics that are proximal to the existing resource.

Following the completion of the infill RC holes, the Mineral Resource Estimates at Sageras and Alameda South will be updated prior to pit optimization studies being undertaken as part of the Definitive Feasibility Study (DFS).

Table 2 - Alameda South Drill Hole Intersections

1. Holes with no dip and azimuth specified are vertical

2. Drill intersections are calculated using a 200ppm lower cut-off with a minimum 1m intersection

3. Depth figures are rounded, so differences may occur

Table 3 - Sageras Drill Hole Intersections

1. Holes with no dip and azimuth specified are vertical

2. Drill intersections are calculated using a 200ppm lower cut-off with a minimum 1m intersection

3. Depth figures are rounded, so differences may occur

Notes

The uranium grades reported in this release are annotated with a sub-prefix "e" because they have been reported as uranium equivalent grades derived from down-hole gamma ray logging results and so they should be regarded as approximations only.

The Berkeley drill holes were logged with a GeoVista total count gamma tool. The gamma tool was calibrated in Adelaide at the Department of Water, Land and Biodiversity Conservation in calibration pits constructed under the supervision of CSIRO. The various calibration factors were calculated by David Wilson BSc MSc MAusIMM from 3D Exploration Ltd based in Perth, Western Australia.

Drill hole co-ordinates are in UTM 29 ED 50 Datum grid and have been surveyed using a DGPS.

Drill intersections are calculated using a 200 ppm eU3O8 lower cut-off with a minimum 1 metre intersection.

As a check on the down-hole gamma logging data, hand held scintillometer readings were taken along the mineralised sections of the core. These showed good correlation with the down-hole gamma readings and were used to identify sections which may have been affected by radon. The down-hole gamma results also confirmed visual observations of significant uranium mineralisation in all of the holes.

A full version of this announcement, including maps and images, is available on the Company's website, www.berkeleyresources.com.au.