Berkeley Mineral Resources Regulatory News (BMR)

BERKELEY MINERAL RESOURCES PLC

("BMR" or "The Company")

Lead and Zinc Processing Agreement signed for operations to commence in 2013

Berkeley Mineral Resources Plc, the AIM listed resource company engaged in the processing of tailings dumps in Zambia, announces that its 100%-owned Zambian subsidiary Enviro Processing Limited ("EPL") has now signed an exclusive agreement to design, build, commission and operate a Washplant tailing facility agreement ("the Agreement") with Ascot Group Limited DOO ("Ascot") for the production of lead and zinc concentrates from the Washplant tailings stockpiles BMR owns at the former Kabwe mine site in central Zambia. Concentrate production is expected to commence in the fourth quarter of 2013.

Ascot has in place an expert team of geological, metallurgical and processing engineers under the direction of Dr Uros Herlec. The team has been developing and testing plans to produce commercial zinc and lead from the Washplant tailings since Ascot was appointed as a contractor in December 2012. Ascot personnel are currently in Kabwe, working on tailings ground-works and site preparation. Equipment specification options for the production plant are being finalised.

The Agreement is for the period up to 28 February 2014, with provision for continuation provided that certain production targets are met. Under its terms, Ascot will:

1. Submit a Definitive Feasibility Study ("DFS") for the Washplant tailings production programme within seven days. This study is to confirm a rate of metal recovery of at least 70% and production through a gravity separation flow-sheet of a concentrate containing not less than 40% combined zinc and lead;

2. Design and deliver the agreed production plant at Kabwe and carry out assembly with final plant commissioning on or before 15 November 2013;

3. Provide an expert team to commence processing and continue to supervise the running of the plant to develop output up to nameplate rates for an initial three-month period after commissioning. During this period, Ascot is incentivised to achieve the targets set for plant throughput. In order to align Ascot's interests with those of BMR and its shareholders, Ascot can also earn a performance bonus dependent upon the net operating profits achieved during the period;

4. Train the employees of EPL to ensure production levels for the life-of-mine are to high environment and health and safety standards;

5. Design, test and propose plans for secondary leach processing of the residue material following zinc and lead extraction to separate and recover further metals known to be contained in the Washplant tailings; and

6. Design, test and propose plans to process the Leachplant resources at Kabwe.

The conclusions of the DFS are due to be published on a new BMR website to be launched when the DFS is issued by the Company.

On 22 June 2011, BMR announced it had acquired all the tailings at the former Kabwe mine and on 1 June 2012 it confirmed that it had secured the Large Scale Licence 6990-HQ-LML. EPL is currently expecting approval by the Zambian Environmental Management Authority to commence with its Environmental Impact Assessment process which incorporates the Ascot Washplant tailings plant design and processing plan.

BMR is in discussions with potential off-takers for the concentrates it will be producing, on an ex-works basis. Under the terms of the Agreement, Ascot shall provide EPL with an expression of interest from an off-taker, or off-takers, with a demonstrable track record in lead/zinc bulk concentrate trading.

Funding and Exercising of Warrants

Whilst the final plant capital costs are subject to the publication of the DFS, the Company plans to fund them from its current cash reserves and additionally from the proceeds of the exercise of a tranche of its existing warrants by institutional investors.

As announced on 24 April 2013, the Company currently has a total of 200.4 million warrants outstanding. To complete this funding, it is proposed that up to 127,916,666 of these warrants, exercisable until 24 October 2013, are to be exercised by institutional investors at an agreed price of 2p per share being a discount to the original exercise price of 6p per share. By this, the Company will raise up to £2,558,333. The Company will still have a further 72,500,000 warrants in issue, exercisable until 28 June 2014 at a price of 6p.

Application will be made for the admission to trading on AIM of 127,916,666 New Ordinary Shares and admission is expected to occur on 9 August 2013.

Following the issue and allotment of the New Ordinary Shares, the Company's issued share capital will total 1,210,956,458 Ordinary Shares. The Company does not hold any ordinary shares in treasury. The new ordinary shares will rank pari passu with all existing Ordinary Shares in the Company. Therefore, the total number of voting rights in the Company is 1,210,956,458. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules ("DTR").

Potential material increase in processable resources.

As previously announced, The Mineral Corporation has produced a mineral resources estimate for the Washplant tailings to JORC standards delineating a resource of 573,458 tons of material containing 41,345 of lead metal and 61,147 of zinc metal.  

BMR has identified further sections of the tailings dumps not currently subject to a JORC- resource standard which will be tested by Ascot for suitability for processing through its proposed gravity production techniques. The resultant additional material may be added to the resource once economic viability has been proven.

Masoud Alikhani, Chairman, commented:

"The signing of the Agreement with Ascot effectively launches BMR as a base metals concentrate producing company. BMR's strategy for the Washplant metals production programme now being implemented is to be subsequently applied to more of the Company's considerable base metal inventory.

Thus, as well as commencing to receive substantive cash inflows, the Company will also be testing the potential for a material increase which has arisen in BMR's processable resources".

Ray Power, CEO of Ascot Ltd, commented: "Ascot is pleased to have signed this Agreement with BMR to recover and develop the Washplant tailings resources at Kabwe. Our team is now looking forward to delivering the Kabwe processing plant on time and on budget and achieving the targeted production and environmental levels set".

This release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), MGSSA, Consulting Geologist to the Company, who is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.

For further information please contact:

Berkeley Mineral Resources Plc

Masoud Alikhani, Chairman

020 7408 1181

Cantor Fitzgerald Europe

Stewart Dickson / Julian Erleigh (Corporate Finance)

Jeremy Stephenson (Corporate Broking)

Tel: 020 7894 7000

Lothbury Financial Services

Michael Padley /Gary Middleton

020 3440 7620