Berkeley Eng Regulatory News (BKY)

Quarterly Activities Report - September 2011

HIGHLIGHTS

·; Works completed to initiate the licensing and permitting process for Berkeley's 100%owned Salamanca 1 project. An 18 month permitting process is forecast with Project construction expected to commence in 2013.

·; Appointment of independent director, Mr Laurie Marsland strengthens Berkeley Board.

·; Basic Engineering and Design works nearing completion for Berkeley's Salamanca JV project.

OVERVIEW

September was a milestone quarter for Berkeley as it completed works to initiate the permitting process for the Company's 100%owned Salamanca 1 Uranium project. As announced, subsequent to the end of the quarter, licensing and permitting was initiated on 11th October, 2011.

On 27th October, the Salamanca 1 project received a significant boost with the signing of a cooperation agreement between Berkeley, and the municipalities of Retortillo and Villavieja de Yeltes. This step is critical in allowing Berkeley to accelerate, and provide a firmer timeframe, on the licensing and permitting process. As a result, Berkeley now forecast that project construction will commence in 2013.

In early December, Berkeley will provide more detail on the Salamanca 1 project, and on the permitting progress.

Prioritising and developing Salamanca 1 independently of Berkeley's other joint-venture projects within the region is an important step for the Company. The Scoping study completed, along with works completed to date on the Salamanca 1 Feasibility Study, indicates a robust development opportunity at an initial production rate of c.1.5Mlb pa. Nearby deposits, and the Gambuta deposit, hold similar development potential and, are expected to support increased production over time. In addition, the Company's 100% owned licenses in the Salamanca and Caceres provinces have significant exploration upside.

As Berkeley's 100% owned resources are separate from the State Reserves, the permitting process is conducted through the Regional Government of Castilla y Leon, a Region with a long and recent history of uranium mining, along with a number of other successful hydrometallurgical mining projects, including heap leaching. Initial discussions with both Regional and Local Governments indicate strong support for the project. Berkeley now anticipates that the licensing and permitting process will take approximately 18 months.

Berkeley's priority is to become a profitable uranium producer in the near term, and generate a strong cash flow for its shareholders, and for the Company's wide range of stakeholders in Spain. Accelerating the Salamanca 1 project is the optimum way to achieve this goal.

As reported in the June quarter, the Company is completing the Basic Engineering and Design at the Salamanca JV project, including an Independent Technical Review. This work is the next-stage of the Mining Domain Feasibility Study and will be completed by the end of October.

The September quarter also saw the appointment of Mr Laurie Marsland as a Non-Executive Director, effective from the 25th August 2011. Mr Marsland, an Engineer with more than 30 years of diverse experience in the international mining industry, and with a strong background in project development, is a welcome addition to the Berkeley Board.

Enquiries - Managing Director: Brendan James Tel: +34 630 517 559

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

MINERAL PROCESSING AND ENGINEERING

Berkeley 100% Salamanca 1 Uranium Project

A Scoping Study based on exploitation of Berkeley's 100% owned Retortillo and Santidad deposits was completed in August. It demonstrated technical capability, and very strong project feasibility. This study was developed as a conceptual heap leach operation, considering two production scenarios: 1Mlb/yr and 2 Mlb/yr.

Following these encouraging results, a Feasibility Study for the Salamanca 1 uranium project was immediately initiated. PPM Solutions is acting as principal engineer. The study will be completed in December 2011.

As a result of the strong Scoping Study results, and early indications from the Feasibility Study, Berkeley initiated the Exploitation Project, Environmental Impact Assessment, Closure Plan and Radiological Impact Scoping Document. All of these documents will be submitted to the Regional Administration before the year-end as part of the permitting process for these deposits, that (as announced) Berkeley initiated on the 11th of October 2011 by submitting the required application and the Environmental Scoping Document.

Salamanca JV project

Works continued on the Mining Domain Conceptual Basic Engineering Report (MDCBER) for the Alameda and Aguila projects, which commenced on 7thJuly, 2011 and continued throughout the Quarter. The primary focus was on advancing key stages of the project, and on optimization of the study. The study will be completed at the end of October and reported in November.

In parallel, the internationally recognized company, Tecnicas Reunidas, is completing an independent review of the MDCBER.

Variability tests on the leaching process and IX-SX optimization tests were completed during the quarter. Further comminution test work, managed by Orway Minerals and Miller Metallurgical Services, was also initiated to evaluate SAG milling versus the previous ball and rod mill options for the Alameda and Aguila deposits.

EXPLORATION

Key Points

The major Retortillo RC drill campaign was initiated at the start of July 2011 and completion of the combined infill, near mine exploration and condemnation drill program, totaling approximately 200 holes, is planned for November. The resource estimate will then be recalculated.

Data from the recent RC drilling in Alameda, Sageras and Palacios has been integrated into the existing models which are being updated by AMC, prior to reestimation of the resources in the December quarter.

Exploration targets in the Salamanca and the Caceres permits have been reviewed. An exploration program in these areas is being developed with focus on the prospective areas close to the Retortillo and Gambuta deposits.

Figure 1 - Drilling Summary September Quarter Salamanca Uranium Project

Exploration and Drilling

Exploration and infill drilling in Alameda South, Mimbre and Sageras West have been completed. Notable intersections are tabulated in Figure 2 (below). A summary of all received chemical data can be reviewed in the appendix.

Figure 2 - Notable intersections (chemical assays with intersections calculated at a 200 ppm cut-off)

RETORTILLO

The Retortillo infill drill campaign started on the 6th of July with the aim of completion in November. A total of 115 RC holes, for 6,861m were drilled. This campaign has four main objectives:

1. More detailed confirmation of the historic dataset and generating a more detailed geological model;

2. Infill drilling to upgrade Inferred resources to the Indicated category;

3. Extension of existing resources through exploration drilling; and

4. Condemnation drilling for mine and plant design purposes.

As previously announced, a progress estimate of Retortillo resources in early October, based on 98% e-grade data for the new RC holes, indicated a possible decrease in the Retortillo resources compared to the 2007 estimations.

The more detailed drill coverage confirms a strong structural control of the mineralization and the main fracture systems indicate continuity of mineralization beyond the current resource outline. Encouraging results from the north-western sector also indicate continuity between the main deposit and the north western lobe.

ALAMEDA

The infill program at the Alameda deposit was finalized with ten outstanding holes, drilled to test lateral extensions of the deposit. Six holes intercepted mineralization with a resultant increase in the Indicated resource component.

At Mimbre, six exploration holes were drilled to follow up the encouraging results of ASR-082 (5m@424ppm U3O8). They only intersected minor mineralization, with the best result being 1m @ 223 ppm in MBR 004. However, a further nineteen holes are planned along the highly prospective granite-metasediment contact zone that hosts the known deposits in this area to test for a distance of 2km south of the state reserve boundary.

AGUILA - SAGERAS

In Sageras, 11 infill holes were drilled with the aim of upgrading the small component of Inferred resources to Indicated. The deposit is still open to the north-west where further exploration has been planned.

REASSESSMENT OF OTHER 100% BERKELEY PROJECTS AND NEW TARGET GENERATION

Only minor greenfield exploration work was undertaken in the Salamanca - Retortillo area and the Caceres Province during the September quarter.

The primary objective for the next quarter will be exploration within proximity of the Retortillo and Santidad deposits, particularly at Zona 7, Las Carbas, Mina Cristina and Mina Caridad.

Good potential has been identified in the 1.3km undrilled corridor between Zona 7 (3.6 Mlbs U3O8) and Las Carbas (0.6Mlbs U3O8). Of additional interest are areas SE of Mina Cristina and Caridad, partially covered by soil and Tertiary sediments. No historic exploration is known in the covered areas, but the 2007 aeromagnetic survey indicated lithological continuity beneath the Tertiary cover. Exploration techniques will utilise ground radiometrics, detailed geological mapping, and downhole probing of existing water bore holes. In permits to the west-northwest of Retortillo-Santidad, field work will focus on existing targets and additional possibilities.

In the Caceres province an infill program of RC drilling is being designed for the Gambuta project with the aim of upgrading the geological model and current resource estimate. The satellite prospects (e.g. El Zarzal, Ojaranzo, ElChorrero) and the granite-metasediment contact zone will also be investigated.

APPENDIX: CHEMICAL DATA (with intersections calculated at a 200 ppm cut-off)

ALAMEDA

Alameda intersections from June quarter drilling

Alameda intersections from September quarter drilling