Berkeley Eng Regulatory News (BKY)

BERKELEY RESOURCES LIMITED

AIM RELEASE | 29 APRIL 2015  | ASX/AIM:BKY

MARCH 2015 QUARTERLY REPORT

Berkeley Resources Limited ('Berkeley' or 'the Company') is pleased to present its quarterly report for the period ended 31 March 2015. The Company's primary focus during the period continued to be the advancement of the Salamanca Project ('the Project') located in Spain.

Highlights during the quarter include:

· Substantial progress on the Scoping Study to determine the optimum integration of Zona 7 with the development of Retortillo and Alameda, thereby potentially increasing the scale and/or mine life of the Project:

Ø The metallurgical testwork program is well advanced. The scope of work includes bond crushability and bond abrasion tests, mineralogy, diagnostic leach tests, stacking tests and 1m column leach tests at different crush sizes on representative samples of weathered and fresh ore.

Ø Hydrogeological and geotechnical studies have been completed and technical reports compiled by independent consultants for inclusion in the Scoping Study.

Ø Mining studies, including pit optimisation and sensitivity analysis, pit design, mining phase definition, waste dump design and waste/ripios backfill scheduling, have been completed.

Ø A materials movement trade-off study which compares the options available to transport material from Zona 7 to the proposed centralised processing facility at Retortillo is well advanced.

Ø The Scoping Study is scheduled to be completed in the current quarter, following which the next phase of resource infill drilling at Zona 7 will commence. The objective of the drilling program is to upgrade the classification of the high grade portion of the Zona 7 Mineral Resource Estimate ('MRE') to the Indicated category.

· Salamanca Project Definitive Feasibility Study ('DFS') advanced:

Ø The DFS is currently focussed on the integrated development of Retortillo and Alameda however, Zona 7 will be incorporated following completion of the Scoping Study and infill drilling program.

Ø Final assay results from the resource infill drilling program at Retortillo, which was aimed at upgrading sections of the resource to the Measured category, were received:

§ Assay results returned from 69 reverse circulation ('RC') drill holes have shown that there is good continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes in the area of the deposit planned to be mined during the initial two years of production as per the Pre-feasibility Study ('PFS) mining schedule.

§ Significant high grade intersections have been recorded at shallow depths (from 14 metres below surface to a maximum depth of 94 metres), with thicknesses up to 30 metres. Better intercepts included 30 metres @ 1,670 ppm U3O8, 13 metres @ 2,484 ppm U3O8, 16 metres @ 1,329 ppm U3O8, and 10 metres @ 1,909 ppm U3O8.

Ø The Retortillo MRE has been updated with the results of the 2014resource infill drilling program:

§ Updated MRE totals 16.6Mt at 367 ppm U3O8 for a contained 13.5Mlbs U3O8 at a lower cut-off grade of 200 ppm U3O8.

§ 4.4Mlbs U3O8 or 33% of the MRE is now classified in the Measured category.

§ The portion of the deposit to be mined during the initial two years of production as per the PFS mining schedule upgraded to Measured.

§ Comparison with the previous MRE (September 2013) highlights the initial estimation of Measured Resources, and shows a small increase in overall tonnage (+3%) and contained U3O8 (+1%) with a slight decrease in average grade (-2%).

Ø The metallurgical testwork program for Retortillo is nearing completion:

§ Solvent extraction ('SX') characterisation tests continued with batch SX performed to remove uranium from the pregnant liquor solutions from the Retortillo 6m columns. The resultant 'loaded organic' has been scrubbed and stripped and ammonium diuranate ('ADU' or 'yellowcake') precipitated from the liquor.

Ø The Retortillo hydrogeological model has been updated based on the results of permeability and hydraulic conductivity tests, along with pumping tests, undertaken in the previous quarter.  

· Positive progress continues to be made on the permitting of Retortillo:

Ø Following granting of the Environmental Licence in 2013 and the Mining Licence in 2014, the approval processes associated with other key permits including the Initial Authorisation of the process plant as a radioactive facility and the Authorisation for Exceptional Use of the Land (application for reclassification from rural to industrial use) for the affected surface land area at Retortillo, continued to be the focus of permitting related activities:

§ All documentation required for the Initial Authorisation of the process plant as a radioactive facility, including the Radiological Analytical Study and Pre-Operational Surveillance Plan have been submitted by Berkeley and reviewed by technical staff within the Nuclear Safety Council ('NSC'). The Initial Authorisation is now pending review and approval of the documentation by the NSC Board.

§ The Company has submitted further documentation pertaining to the application for Exceptional Use of the Land to the municipalities of Retortillo and Villavieja de Yeltes, as requested by the Commission of Environment and Urbanism of Salamanca (the substantive authority). A number of follow-up meetings have been held with the relevant authorities and Berkeley's application will be placed on the agenda of a meeting of the Commission in the coming months.

§ Significantly, Berkeley has recently been granted an important Water Permit. The formal resolution granting authorisation to undertake mining works within the public water domain, to undertake mining works and to locate mining infrastructure adjacent to local creeks and water courses, and to temporally deviate a creek in the Retortillo area, has been received. The authorisation has been granted by the Duero River Water Authority, an agency of the Ministry of Environment of the Central Government.

Enquiries: Robert Behets

Berkeley Resources

+61 8 9322 6322

John Prior / Paul Gillam - Nomad & Broker

Numis Securities

+44 (0) 207 260 1000

OPERATIONS

Berkeley Resources Limited ('Berkeley' or 'the Company') is a uranium exploration and development company with a high quality resource base in Spain. Berkeley is currently focused on advancing its wholly owned flagship Salamanca Project.

Salamanca Project

Berkeley's flagship Salamanca Project ('the Project') comprises the Retortillo, Alameda, Zona 7 and Gambuta deposits, plus a number of other Satellite deposits located in western Spain.

The Company has completed a Preliminary Feasibility Study ('PFS') on the integrated development of Retortillo and Alameda, which clearly demonstrated the Project's potential to support a significant scale, long life uranium mining operation (refer to announcement dated 26 September 2013).

Using the previous Mineral Resource Estimates ('MRE') for Retortillo and Alameda, which totalled 34.5Mlbs U3O8 (36.9Mt at 424 ppm; 200 ppm U3O8 cut-off grade), as a base case scenario, the PFS showed that the Project can support an average annual production of 3.3Mlbs of U3O8 during the 7 years of steady state operation and 2.7Mlbs of U3O8 over a minimum 11 year mine life. Given the positive results of the PFS, the Company has advanced the evaluation of the Project to the Definitive Feasibility Study ('DFS') stage.

Following an update of the Zona 7 MRE which now totals 30.1Mlbs U3O8 (refer to announcement dated 26 November 2014), the Company has also commenced a Scoping Study to determine the optimum integration of Zona 7 with the development of Retortillo and Alameda, thereby potentially increasing the production rate and/or mine life of the Project.

Zona 7 - Scoping Study

Substantial progress has been made during the quarter on the Scoping Study being undertaken to determine the optimum integration of Zona 7 with the development of Retortillo and Alameda. The key considerations for the study are the preferred mining and processing route, scale, throughput rate, mine life, infrastructure, community and environmental impacts.

Metallurgical Testwork

The scope of work includes initial metallurgical testwork on representative samples of weathered and fresh ore, including bond crushability and bond abrasion tests, mineralogy, diagnostic leach tests, stacking tests and 1m column leach tests at different crush sizes.

The bond crushability and bond abrasion tests have been completed for the three composite samples (1 partially weathered and 2 fresh ore samples), with the results demonstrating that none of the material types are difficult to crush and all have low abrasion indexes.

As with the Retortillo and Alameda deposits, mineralogical analysis has shown that uraninite and coffinite are the primary uranium minerals at Zona 7.

The 1m column leaching testwork is well advanced. A total of 6 columns, which comprised the three composite samples at crush sizes of 12mm and 40mm, were loaded and irrigated for 30 days. The residues were then discharged from the columns and subjected to geomechanical load tests, the results of which have confirmed that the assumed stacking of the agglomerated material in 6m lifts is appropriate for the design of the heap. The residues are now being screened and assayed for the reconstituted head and metal accountability analysis. Whilst final results are pending, the leaching characteristics and acid consumptions observed from the 1m column test work are very encouraging, being similar to those recorded in previous metallurgical testwork for the Retortillo deposit.

Hydrogeology / Geotechnical / Mining

During the quarter, 30 permeability tests and one pumping test were carried out at Zona 7. The results have been incorporated into a Hydrogeological Report compiled by independent consultant Ingemisa, for inclusion in the Scoping Study. A total of 55 piezometers are also currently being measured and 6 level recorders have been installed to monitor water level fluctuations.

Analysis of the geotechnical logging has been completed in order to characterize the different rock types and fracture systems at Zona 7. A Geotechnical Report, based on the data logged from the drill cores and supplemented by field observations, has been compiled by independent consultant CRS Ingeniería and will be incorporated into the Scoping Study.

Mining related activities have included pit optimisation and sensitivity analysis, pit design, mining phase definition, waste dump design, and waste rock and ripios (spent ore from the on-off heap leach pads) backfill scheduling. A materials movement trade-off study which compares the various options available to transport material from Zona 7 to the proposed centralised processing facility at Retortillo (~8.5km to the SE) has also been advanced.

The Scoping Study assumes the mining of ore and waste using conventional open pit methods. Diesel-powered truck and shovel excavation with an effective drill and blast plan have been considered. Pit optimisation focussed exclusively on the higher grade portion of the Zona 7 MRE (Domain 6), has defined an open pit with dimensions of approximately 1000m in length, 500m in width and to a maximum depth of 100m.

The mining method will be 'transfer mining' which allows the open pit to be continuously backfilled whilst minimising waste dump volumes and waste rehandling. It also facilitates continuous rehabilitation to minimise environmental impact. The preliminary pit design and mine scheduling process have resulted in 6 phases of pit development over a 7 year period, with mining advancing from the SW to NE.

The Scoping Study is scheduled to be completed in the current quarter, following which the next phase of resource infill drilling at Zona 7 will commence. The objective of the drilling program is to upgrade the classification of the high grade portion of the current MRE to the Indicated category.

The Company will subsequently incorporate Zona 7 into the DFS, with the expanded scope to be focussed on the integrated development of the Zona 7, Retortillo and Alameda deposits.

Retortillo/Alameda - Definitive Feasibility Study

The DFS for the Project commenced in 2014, with the key areas of focus including:

· Resource infill drilling programs aimed at upgrading the classification of specific portions of the current Retortillo and Alameda MRE's to the Measured category;

· Further metallurgical testwork programs, including additional column leach work (6m columns), in combination with ion exchange ('IX') at Alameda and solvent extraction ('SX') and ammonium diuranate ('ADU') precipitation at Retortillo to generate more detailed information relating to the pH and acid consumption optimisation, design and sizing of the IX and SX units, and final product specification;

· Development of a Geo-Met model which will incorporate additional geological and metallurgical parameters into the resource block model to support metallurgical process modelling and mine planning and optimisation;

· Open pit optimisation, detailed mine design and production scheduling using the upgraded MRE block models;

· Enhanced design of the project infrastructure and site facilities;

· Undertaking engineering studies to support capital and operating cost estimates for the Project to a level of accuracy of nominally ±10%; and

· Undertaking an evaluation of the various alternatives for funding the development of the Project and the sale of future uranium production (including uranium marketing and off-take arrangements).

During the quarter a number of work programs providing key inputs to the DFS, including the upgraded MRE for Retortillo, the metallurgical testwork program for Retortillo, and hydrogeological studies for both sites, were advanced or completed.

Retortillo Drilling and Mineral Resource Estimate

An infill drilling program at Retortillo, aimed at upgrading the resource classification of the areas to be mined during the initial two years of the PFS production schedule to the Measured category, was completed in late 2014. A total of 75 reverse circulation ('RC') holes for 4,785m, 4 diamond ('DD') holes for 291m and 4 open holes ('OH') holes for 150m were drilled, forming the basis for the updated MRE reported herein.

The final assay results from the 69 RC drill holes sampled have shown that there is good continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes in the targeted area of the deposit.

Significant high grade intersections were recorded at shallow depths (from 14m below surface to a maximum depth of 94m), with thicknesses up to 30m. High grade intercepts included 30m @ 1,670 ppm U3O8, 13m @ 2,484 ppm U3O8, 16m @ 1,329 ppm U3O8 and 10m @ 1,909 ppm U3O8.

All significant intersections returned from the 2014 drill holes, along with the details of the collar positions, drilling orientations and depths, are presented in Appendix A.

Location and Geology

Retortillo forms part of Berkeley's Salamanca Project in central-western Spain. It is a vein type uranium deposit hosted in a sequence of fine grained metasediments adjacent to a granite intrusive. The mineralised envelope is interpreted to be sub-horizontal to shallowly dipping, and occurs from surface and to maximum depth of approximately 100m. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling associated with brittle deformation. Most of the uranium mineralisation occurs within the partially weathered zone. Uraninite and coffinite are the primary uranium minerals.

Drilling

Three phases of drilling, totalling 1,105 holes for 74,099m, have been carried out at Retortillo (Table 1).

The initial phase relates to historical drilling conducted during the 1960's to 1980's by Junta de Energía Nuclear ('JEN') and Empresa Nacional de Uranio ('ENUSA'), two Spanish state run companies. 230 DD holes and 42 OH holes were drilled for a combined 20,453m (28% of total drilling).

The second phase of drilling was conducted from 2006 to 2013 by Berkeley. During this period, 571 RC holes, 162 DD holes and 17 OH holes for a combined 48,420m (65% of total drilling) were drilled to test the area of mineralisation defined by the historical drilling.

A third phase of drilling was completed in 2014. The 2014 drilling campaign, which comprised 75 RC holes for 4,785m, 4 DD holes for 291m and 4 OH holes for 150m, was aimed at upgrading the resource classification of the areas to be mined during the initial two years of the PFS production schedule to the Measured category.

Table 1: Summary of drill holes used in the resource update

The majority of the Berkeley drilling was undertaken on a 50m by 50m grid along section lines orientated approximately northeast-southwest across the interpreted strike of the mineralisation. The 2014 infill drilling has resulted in a closer spaced 35m by 35m grid in the areas to be mined during the initial two years of the PFS production schedule. The majority of the drill holes at Retortillo are vertical however, select 2014 drill holes were inclined to validate the interpreted orientation of the mineralised zone.

RC drill samples were collected over 1m intervals and these samples were split to achieve 0.7-1.0kg sub-samples which were sent to external laboratories for sample preparation and uranium analysis. Samples were split using a riffle splitter or a cone and quarter method. Field tests of the two methods found that both produce representative samples. Sampling of diamond core was completed using 0.3m to 2.5m sample lengths. For the historical DD, whole core samples were crushed for sample analysis whilst for the Berkeley DD, core was cut to achieve either half or quarter core samples. DD core recoveries typically exceed 90%.

Sample preparation of all drill samples involved oven drying, crushing and pulverising to achieve a grind size of 85% passing 75μm. Sample pulps from the Berkeley drilling were analysed for uranium using either delayed neutron counting ('DNC') or pressed powder x-ray fluorescence ('XRF') methods. Historical drilling samples were analysed for uranium using the XRF, atomic absorption spectrometry ('AAS') or fluorometric methods. Berkeley sample batches were prepared with standards, blanks and field duplicates inserted prior to dispatch to the laboratory. Approximately 15-20% of all samples relate to quality control. There is no data available regarding quality assurance and quality control ('QAQC') from the historical drilling.

All Berkeley drill holes were down-hole gamma logged and 'equivalent' U3O8 grades or eU3O8 grades calculated from down-hole gamma emissions recorded using standard gamma logging systems, with appropriate QAQC procedures in place. The gamma response was converted to an estimated uranium grade by correcting for radon, hole diameter, and air/water with a deconvolution filter applied to reflect the nature of mineralisation. Assay data is the primary method for grade estimation in the resource modelling process and eU3O8 data was only used where there was no assay data available.

Resource Model

Geological interpretation was undertaken on 50m or 35m spaced sections with wireframes interpreted around the mineralised intercepts taking into account geology and structure where possible. These sectional interpretations were joined to create a series of three dimensional ('3D') mineralised wireframe domains honouring the continuity of grade along and across strike.

Topographic control is based on a digital terrain model ('DTM') with sub-metre accuracy sourced from the Spanish Geographical Institute (Instituto Geográfico Nacional). The DTM was verified from drill hole collar surveys completed by a qualified surveyor using a differential global positioning system ('DGPS').

A volume block model was constructed using a parent block size of 10m (X) by 10m (Y) by 3m (Z) with cells being permitted to split once in any direction where bounding surfaces of the mineralised wireframes were intersected.

Basic statistics and variogram modelling was completed using 1m sample composites within each domain. As most sample populations had significant positive skewness, grade top cuts were applied approximating the 97.5 population percentile. The domains were assessed independently and a top cut grade was applied to the drilling data for most domains, up to a maximum of 3,800 ppm U3O8.

Grade Estimate

The uranium grade was estimated into the parent cells using Ordinary Kriging ('OK'). Variography was used to derive appropriate orientation and weighting factors employed by the Kriging algorithm. Suitable sample search distances, minimum and maximum sample numbers required to make a grade estimate and search ellipse anisotropy to honour the mineralisation trends were derived. These parameters were selected to ensure that the resource model honours both the global and local grade distribution of the uranium mineralisation.

Bulk density values were derived from over 470 solid‐fluid pycnometer measurements. In situ dry bulk densities were applied to all blocks in the resource model based on the degree of weathering as follows: 2.28 t/m3 for completely weathered material, 2.39 t/m3 for partially weathered material and 2.62 t/m3 for fresh rock.

Validation of the models included visual inspection of the grade distribution compared to the drill hole data, comparison of block model and drill hole statistics and creation and assessment of swath plots. Overall the grade estimate showed a good representation of the drill hole data for the resource.

Mineral Resource Estimate

The MRE for Retortillo has been updated, incorporating additional drilling and sampling information from the 2014 drilling campaign.

The MRE has been classified as Measured, Indicated or Inferred, based on the guidelines recommended in the JORC Code (2012). When classifying the resource estimate the following has been considered:

· Quality and reliability of raw data (sampling, assaying, surveying);

· Confidence in the geological interpretation;

· Number, spacing and orientation of intercepts through mineralised zones;

· Knowledge of grade continuities gained from observations and geostatistical analyses; and

· The potential prospect for eventual economic extraction.

The MRE is reported at a cut-off grade of 200 ppm U3O8 (Table 2), along with estimates showing the range of U3O8 cut-off grades that would span the range applicable to open pit mining (Table 3).

Table 2: Retortillo - Mineral Resource Estimate, April 2015

All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding.

Table 3: Retortillo - Grade Tonnage Table

Comparison with previous Mineral Resource Estimate

An Indicated MRE of 14.4Mt averaging 378 ppm U3O8 for a contained 12Mlbs of U3O8 and an Inferred MRE of 1.8Mt averaging 359 ppm U3O8 for a contained 1.4Mlbs of U3O8 at a lower cut-off grade of 200 ppm U3O8 was previously reported for Retortillo in September 2013 (refer to Announcement dated 26 September 2013). Since then the following significant changes have occurred:

· An additional 75 RC holes for 4,785m, 4 DD holes for 291m and 4 OH holes for 150m were drilled during 2014;

· The infill drilling has resulted in a closer spaced 35m by 35m grid in the areas to be mined during the initial two years of the PFS production schedule; and

· The data spacing in these areas is considered sufficient to verify geological and grade continuity, and allow the estimation of Measured Mineral Resources (33% of total MRE).

Table 4 presents a summary of the differences between the current and previous MRE's which highlights the initial Measured Resource estimate, small increases in tonnage and contained U3O8 and a slight decrease in grade.

Table 4: Retortillo - Comparison of September 2013 MRE and April 2015 MRE

Further technical details on the Retortillo MRE are included in Appendix B (Summary of Resource Estimate and Reporting Criteria) and Appendix C (JORC Code, 2012 Edition - Table 1 Report).

The updated Berkeley Mineral Resource Statement is included in Appendix D. The Mineral Resource Statement is listed by deposit, all of which form part of the Salamanca Project.

Metallurgical Testwork

The metallurgical testwork program being undertaken for three master composite samples, representative of various mining phases at Retortillo, continued during the quarter at the Mintek facilities in Johannesburg.

The initial 6m column leaching testwork, which comprised 8 columns, has been completed. After approximately 85 days leaching, the residues were discharged in 1m sections and the wet masses recorded. The residues were then composited in 2m intervals (3 composites per column), wet-screened, and assay-by-screen-size performed. A composite residue sample was subsequently reconstituted and analysed for ICP-OES for a suite of elements. This information will enable the overall mass balances for the columns to be finalised. Whilst final results are pending, the leaching characteristics and reagent consumptions observed are generally in line with expectation.

An additional "low acid" 6m column was loaded and placed under irrigation during the quarter. The objective of the additional column is to assess the potential to reduce the acid doses during agglomeration and the impact of the lower acid addition on the leach kinetics and uranium recovery.

Solvent extraction characterisation tests continued during the quarter. Batch solvent extraction was performed to remove uranium from the recirculating pregnant liquor solutions ('PLS') from the 8 Retortillo columns, whilst minimizing the co-extraction of impurities. The loaded organic generated during the batch extractions for individual columns was blended and stored as 'loaded organic' for scrubbing and stripping test work. This 'loaded organic' is deemed the most representative of what could be expected on the full scale plant for this specific ore.

The bulk 'loaded organic' has now been scrubbed and stripped and ADU ('yellowcake') precipitated from the liquor. The 'loaded organic' was scrubbed using demineralised water at pH 1.8 to remove impurities prior to stripping using ammonium sulphate solution. The ADU precipitated from the liquor was filtered and washed prior to being dried at 50oC in an oven. The ADU will now be analysed to ensure that there are no impurities at levels that could adversely impact the quality of the yellowcake.

Hydrogeology

The Retortillo hydrogeological model was updated to incorporate the results of permeability and hydraulic conductivity tests carried out during the previous quarter. The results of these field tests have provided important information on the general permeability (increased from 10-2 m/day to 10-1 m/day) and reservoir capacity of the area, and have identified fractures with capacity to transmit water. 

Pre-operational Surveillance Plan maps have also been generated for water quality and water table level at Retortillo based on the interpretation of the analytical results of the underground water monitoring program completed during the quarter.

Permitting

Following granting of the Environmental Licence in 2013 and the Mining Licence in 2014, the approval processes associated with other key permits including the Initial Authorisation of the process plant as a radioactive facility and the Authorisation for Exceptional Use of the Land (application for reclassification from rural to industrial use) for the affected surface land area at Retortillo, continued to be the focus of permitting related activities during the quarter.

All documentation required for the Initial Authorisation of the process plant as a radioactive facility, including the Radiological Analytical Study and Pre-Operational Surveillance Plan have been submitted by Berkeley and reviewed by technical staff within the Nuclear Safety Council ('NSC'). The Company has subsequently provided responses to all queries/requests for clarification put forward by the NSC technical staff. The Initial Authorisation is pending review and approval of the documentation by the NSC Board.

The Company submitted further documentation pertaining to the application for Exceptional Use of the Land at Retortillo to the municipalities of Retortillo and Villavieja de Yeltes in January, as requested by the Commission of Environment and Urbanism of Salamanca. A number of follow-up meetings have been held with the relevant authorities and Berkeley's application will be placed on the agenda of a meeting of the Commission of Environment and Urbanism of Salamanca (the substantive authority) in the coming months.

Significantly, the Company has recently received the formal resolution granting authorisation to undertake mining works within the public water domain (dominio público hidráulico), to undertake mining works and to locate mining infrastructure adjacent to local creeks and water courses, and to temporally deviate a creek in the Retortillo project area. The said authorisation has been granted by the Duero River Water Authority, an agency of the Ministry of Environment of the Central Government.

The permitting process for Alameda continued during the quarter, and following review by the Ministry of Industry, the Environmental Scoping Document ('ESD') has now been forwarded to the Ministry for Environment for review and comment. The next step in the process involves the ESD being subjected to a compulsory 2 month consultation period.

All key documentation associated with the Initial Authorisation of the processing facilities at Alameda as a radioactive facility has been compiled and is ready to be submitted, along with the Environmental and Social Impact Assessment ('ESIA'), once the ESD consultation period has been concluded. 

A stand-alone permitting process is required for Zona 7 however; the substantive regulatory authorities are the same as those involved in the Retortillo process. The documents required to commence the Environmental and Mining Licence processes will be prepared and submitted following completion of the Zona 7 Scoping Study and initial Environmental and Radiological Protection baseline studies.

CORPORATE

At 31 March 2015, the Company had cash reserves of A$14.9 million. The Company continues to maintain a strong focus on cost control across all areas of the business.

Competent Persons Statement

The information in this report that relates to the 2015 Mineral Resources for Retortillo is based on information compiled by Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Titley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Exploration Results from the Retortillo 2014 drilling program is based on information compiled by Robert Behets, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Behets is a holder of shares, options and performance rights in, and is a director of, Berkeley Resources Limited. Mr Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Behets consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to 2014 Mineral Resources for Zona 7 is extracted from the report entitled 'Salamanca Project Total Resource increased by 43% to 88.2 Mlbs U3O8 following substantial increase in Zona 7 Resource' dated 26 November 2014 and is available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original Announcement that relates to the 2014 Mineral Resources for Zona 7 was based on information compiled by Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to 2014 Exploration Results is extracted from the reports entitled 'Thick, High Grade Mineralisation Intersected at Zona 7' dated 18 August 2014 and 'Further Thick, High Grade Drill Intersections at Zona 7' dated 10 November 2014 which are available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original Announcements that relate to the 2014 Exploration Results is based on information compiled by Robert Behets, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Behets is a holder of shares, options and performance rights in, and is a director of, Berkeley Resources Limited. Mr Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to earlier Exploration Results and Mineral Resources is extracted from Berkeley's announcements dated 31 July 2012 (June 2012 Quarterly Report), 31 October 2012 (September 2012 Quarterly Report), 7 August 2013 and 26 September 2013 which are available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original announcements was based on information compiled by Craig Gwatkin, who is a Member of The Australian Institute of Mining and Metallurgy and was an employee of Berkeley Resources Limited. Mr Gwatkin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The information in this report that relates to the Pre-Feasibility Study is extracted from Berkeley's announcement dated 26 September 2013 which is available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original announcement was based on information compiled by Neil Senior of SENET (Pty) Ltd. Mr Senior is a Fellow of The South African Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Senior consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Production Target

The Production Target stated in this Report is based on the Company's Pre-Feasibility Study ('PFS') for the Salamanca Project as released on 26 September 2013. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 was included in the Company's June 2014 Quarterly Report released to the ASX on 24 July 2014.

The Company confirms that the material assumptions underpinning the PFS and Production Target referenced in the 26 September 2013 and 24 July 2014 releases continue to apply and have not materially changed.

Forward Looking Statement

Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

Glossary of Key Terms

'Competent Person' is a minerals industry professional who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a 'Recognised Professional Organisation' (RPO), as included in a list available on the JORC and ASX websites.

'Feasibility Study' (or Definitive Feasibility Study) is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable Modifying Factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study.

'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

'JORC' means the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia.

'JORC Code (2004)'means the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

'JORC Code (2012)' means the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

'Measured Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

'Mineral Resource' means a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

'Modifying Factors' are considerations used to convert Mineral Resources to Ore Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors.

'Preliminary Feasibility Study' (or Pre-Feasibility Study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includes a financial analysis based on reasonable assumptions on the Modifying Factors and the evaluation of any other relevant factors which are sufficient for a Competent Person, acting reasonably, to determine if all or part of the Mineral Resources may be converted to an Ore Reserve at the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a Feasibility Study.

'Scoping Study' is an order of magnitude technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments of realistically assumed Modifying Factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be reasonably justified.

Appendix A: Summary of Significant RC Drill Intersections - Retortillo (200 ppm U3O8 cut-off)

Appendix B: Summary of Resource Estimate and Reporting Criteria

This report has been prepared in compliance with JORC Code 2012 Edition and the ASX Listing Rules. The Company has included in Appendix C, the Table 1 Checklist of Assessment and Reporting Criteria for Retortillo as prescribed by the JORC Code (2012) and the ASX Listing Rules.

The following is a summary of the pertinent information used in the Retortillo MRE.

Geology and Geological Interpretation

Retortillo is a vein type uranium deposit hosted within Ordovician metasediments adjacent to granite. The mineralised envelope is interpreted to be sub-horizontal to shallowly dipping, and occurs from surface and to maximum depth of approximately 100m. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling associated with brittle deformation. Most of the uranium mineralisation occurs within the partially weathered zone. Uraninite and coffinite are the primary uranium minerals. The deposit falls into the category defined by the International Atomic Energy Association ('IAEA') as Vein Type, Sub Type Iberian Type.

Drilling and Sampling Techniques

The MRE is based upon data obtained from three phases of drilling (historical 1960's to 1980's, 2006-2013 and 2014) totalling 1,105 holes for 74,099m. The drilling comprised 396 DD, 646 RC and 63 OH holes.

The majority of the Berkeley drilling was undertaken on a 50m by 50m grid, with section lines orientated approximately northeast-southwest across the interpreted strike of the mineralisation. Some of the drilling was completed on a closer spaced 35m by 35m grid. The majority of the drill holes at Retortillo are vertical however, select 2014 drill holes were inclined to validate the interpreted orientation of the mineralised zone.

Berkeley drill hole collar locations were surveyed by qualified surveyors using standard DGPS equipment achieving sub decimetre accuracy in horizontal and vertical position. Berkeley down-hole surveys were undertaken using a Geovista down-hole deviation probe. Measurements were taken every 1cm down hole and averaged every 10m. All diamond and RC drill samples were geologically logged, with all relevant data being recorded. Diamond core was also geotechnically logged. Berkeley core boxes and samples and RC samples and chip trays were photographed for future reference.

Diamond core was quarter or half cut and sampled on 0.3-2.5m intervals. RC samples were collected over 1m intervals and split in the field using two riffle splitters in cascade or a cone and quarter method to provide an approximately 3-5kg sample. Samples were further split in the core shed using a riffle splitter such that 0.7-1kg samples were sent to external laboratories for preparation and analysis. Quality assurance procedures were employed, including the use of standards, blanks and duplicates.

Down-hole gamma logging was undertaken for all probe accessible holes drilled by Berkeley to provide eU3O8 data. The down-hole gamma response was converted eU3O8 by correcting for radon, hole diameter, air/water and a deconvolution filter was also applied. eU3O8 data was only considered in the mineral resource estimation process when chemical assay data was not available.

Bulk density values were derived from over 470 solid‐fluid pycnometer measurements. In situ dry bulk densities were applied to all blocks in the resource model based on the degree of weathering.

Sample Analysis Method

Sample preparation of all drill samples involved oven drying, crushing and pulverising to achieve a grind size of 85% passing 75μm. Sample pulps from the Berkeley drilling were analysed for uranium using either of the DNC or pressed powder XRF methods. Historical drilling samples were analysed for uranium using the XRF, AAS or fluorometric methods.

Resource Estimation Methodology

Surpac software was used for geological modelling, block modelling, grade interpolation, MRE classification and reporting. Sectional geological interpretations were joined to create a series of 3D mineralised wireframes (domains) that showed continuity above a grade of 100 ppm U3O8. Statistical and geostatistical variogram modelling was used to determine appropriate parameters for estimation of uranium grade using Ordinary Kriging.

Cut-off Grades

The MRE has been reported using a lower cut-off grade of 200 ppm U3O8, which is consistent with the grade used to report previous MRE's for this style of mineralisation.

Mining and Metallurgical methods and parameters

The PFS demonstrated that the Retortillo resource can potentially be extracted using open pit mining methods, with the recovery of uranium through the application of acid heap leach methods.

Berkeley has completed a number of metallurgical testwork programs for Retortillo as part of the Scoping Study, PFS and DFS, including column leach tests at commercial stack heights (6m). The results of these testwork programs have shown that heap leaching can achieve uranium recoveries in the order of 85%.

Resource Classification Criteria

The MRE has been classified and is reported as Measured, Indicated or Inferred based on guidelines recommended in the JORC Code (2012). The reported MRE has been classified with consideration of the quality and reliability of the raw data, the confidence of the geological interpretation, the number, spacing and orientation of intercepts through the mineralised zones, and knowledge of grade continuity gained from observations and geostatistical analysis. There is adequate mining, metallurgy and processing knowledge to imply reasonable prospects for eventual economic extraction.

Appendix C: JORC Code, 2012 Edition - Table 1 Report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)