Berkeley Eng Regulatory News (BKY)

27 October 2011

Co-Operation Agreement signed between Berkeley and the municipalities of Retortillo and Villavieja de Yeltes

Berkeley Resources announces that on October 26th, 2011, Berkeley and the municipalities of Retortillo and Villavieja de Yeltes, within the Salamanca Province, have signed a co-operation agreement for the exploitation of the uranium deposits located in the municipalities of Retortillo and Villavieja de Yeltes.

As part of the agreement, the municipalities of Retortillo and Villavieja de Yeltes undertake to actively contribute throughout the necessary administrative procedures required for the project to achieve both licensing and permitting.

Berkeley commits to contribute to the economic and social development of the municipalities, as well as by contributing to the budget of the abovementioned municipalities so that they might carry out investments that would bring direct benefits to the community. Berkeley's contributions include, but are not limited to:

- Contributing to the municipal budget of the municipalities of Retortillo and Villavieja, with an amount which includes an annually paid production cannon.

- Giving preference in hiring, in the first instance, personnel from Retortillo and Villavieja de Yeltes.

- To build the necessary convenient bypasses to avoid the coming and going of equipment and personnel through the centre of towns. These accesses will be left to benefit the municipality at the end of the mining operations.

- Provide for the installation of a mobile phone system and broadband internet, extending the coverage to the villages of Retortillo and Villavieja.

Berkeley expects that the exploitation of the Retortillo and Santidad deposits will create 150 - 200 direct jobs (including permanent contractors).

Berkeley has also requested the necessary permits to transfer its current offices, as well as its technical and administrative staff, to Retortillo. For that reason, on October, 14th. 2011 the company submitted the corresponding licensing documents to the Municipality of Retortillo.

With the permitting process now underway, Berkeley forecast that project construction will commence during 2013.

Berkeley Resources Managing Director, Brendan James said ''This agreement is a critical step in progressing the Salamanca 1 uranium project through the permitting phase, and into production, and demonstrates all stakeholders commitment to the project. Importantly it also provides Berkeley firmer timelines through this process."

Enquiries -

Managing Director: Brendan James Tel: +34 923 193 903

RBC Capital Markets: Martin Eales / Daniel Conti Tel: +44 20 7653 4000