Berkeley Mineral Resources Regulatory News (BMR)

BERKELEY MINERAL RESOURCES PLC

("BMR" or the "Company")

Preliminary Results for the Year ended 30 June 2012

Berkeley Mineral Resources Plc, the AIM-listed mining and processing company, is pleased to announce its results for the year ended 30 June 2012.

Highlights:

·; In December 2011, BMR commenced acquiring copper stockpiles by signing an Option Agreement giving it the exclusive right to carry out due diligence on three clusters located at Chingola, Northern Zambia;

·; BMR received government clearance of the transfer of the Large-scale Licence 6990-HQ-LML at Kabwe to its Zambian-registered subsidiary Enviro Processing Ltd in May 2012;

·; Initial test metal recoveries of up to 96% achieved by Mintek in South Africa;

·; In June 2012, BMR concluded a mutually exclusive Memorandum of Understanding ("MoU") with Yunnan Xiangyun Feilong Nonferrous Metal Company ("Feilong").

Highlights post year end:

·; Large-scale mining rights over all the remaining Kabwe resources secured in August 2012;

·; The Kabwe underground mine acquired contains an estimated 51 million tonnes of ore at a combined grade of 4.01%;

·; BMR's first copper resources secured at the Rephidim site, Chingola in July 2012;

·; BMR commenced a pilot programme intended to produce copper cathode in 2013 from tailings stockpiles located at the former Bwana Mkubwa mine, Ndola, Copperbelt Province, Northern Zambia by acquiring a 75% shareholding in Ndola Mineral Resources Limited in October 2012;

Masoud Alikhani, Chairman of Berkeley Mineral Resources Plc, commented:

"Despite the delays caused by the Zambian moratorium, BMR has made significant advances in the year. We have acquired additional recoverable material at Kabwe; signed the MoU with Feilong, which will hopefully become a joint venture; acquired additional recoverable material at Kabwe and secured substantial initial resources of copper tailings.

"We intend to process our copper, lead and zinc on site in Zambia prior to shipping. Feilong are carrying out further processing trials on the Kabwe material. We look forward to reporting the progress made and to cash generation."

For further information please contact:

Berkeley Mineral Resources Plc

Masoud Alikhani, Chairman 020 7408 1181

Seymour Pierce

Stewart Dickson / Jonathan Wright (Corporate Finance)

Jeremy Stephenson / Richard Redmayne (Corporate Broking) 020 7107 8000

Lothbury Financial Services

Michael Padley / Gary Middleton 020 3440 7622

CHAIRMAN'S STATEMENT

During the year under review, Berkeley Mineral Resources Plc ("BMR") made good progress towards its goal of being a processor and supplier of base metals.

As well as obtaining the necessary licences to process the lead and zinc tailings at Kabwe in Zambia, the Company has now made its first entry into the copper industry.

Unlike conventional mining companies who have to undergo the costs and uncertainties of exploration and development, BMR is focused on producing metals by acquiring known stockpiles of tailings with proven metal content, above ground, after the closure of former mines.

Zambia, a member of the Commonwealth of Nations, is both an excellent jurisdiction in which to do business and the site of a number of former world-class mines where extensive tailings are still present. As the former orebodies mined contained high metal grades and the beneficiation techniques employed historically could not capture economically a high percentage of the metal content in the ore, many of the remaining tailings stockpiles still contain high metal grades, for example at Kabwe the tailings grades average over 5% metal content for both lead and zinc.

AQUISITION OF TAILINGS AND LARGE SCALE LICENCE AT KABWE

In July 2011 BMR exercised options to acquire the assets of Silverlining Ltd and Alberg Mining and Minerals Exploration Ltd ("Alberg"), two Zambian-registered companies. Silverlining owned the land, surface rights, offices and certain infrastructure BMR needed for its beneficiation plant at Kabwe; Alberg owned the remaining underground orebodies at the former Kabwe mine and all the intellectual property relating to the resources.

Following completion of due diligence in December 2011 and after a Zambian Licence Moratorium delay, BMR received governmental clearance of the transfer of the Large-scale Licence 6990-HQ-LML to its Zambian-registered subsidiary Enviro Processing Ltd in May 2012. BMR finally effectively acquired all the remaining Kabwe resources by an Assignment from Alberg/Silverlining in August 2012, after it had received all the necessary approvals and permits to process them. Importantly, Alberg had been indemnified from all claims and responsibility relating to past environmental and rehabilitation obligations by ZCCM-IH ("ZCCM"), the Zambian parastatal mining company.

KABWE ZINC AND LEAD RESOURCES

BMR commissioned a verification study to internationally recognised JORC standards for the Central Leachplant and Washplant sections of the tailings. The Competent Person with the overall responsibility for the JORC Mineral Resource estimation and compilation of this report is Mr. D R Young (BSc. Hons., Geology), who is a Competent Person as defined by the JORC Code (2004), being registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions ("SACNASP"), with more than 5 years experience relevant to Mineral Resource estimation.

The Mineral Corporation also compiled an aggregate tonnage estimate for all of the above ground material at the Kabwe site of approximately 6.4Mt at an average of 5.48% Lead and 5.50% Zinc content. This inventory includes approximately 3.2Mt of JORC compliant Measured Mineral Resources for the central leachplant and washplant tailings. The estimates for the tailings material other than the leachplant and washplant materials do not conform to a recognised standard such as JORC and as such cannot be relied upon for economic assessment purposes.

The aggregate estimate for all the above ground stockpiles at the Kabwe Mine site is set out in the table below:

UNDERGROUND ORE RESOURCES

As a result of the Alberg Assignment, in August 2012, BMR now has surface mineral rights over 703 hectares of land containing the remaining un-mined or partly-mined underground ore bodies at Kabwe, together with existing shafts and other infrastructure. According to mine closure records compiled by ZCCM in 1995, these areas contain an estimated 51 million tonnes of ore at a combined zinc and lead grade of 4.01%. These historical estimates do not conform to a currently recognized standard such as JORC or SAMREC and as such cannot be relied upon for economic assessment purposes.

METALLURGY AND PROCESSING

Metallurgical and kiln processing testing has been carried out by Mintek in South Africa using representative samples of both washplant and leachplant material. At 1,200 degrees Centigrade, these tests showed a maximum recovery of 96.1% for the minerals from the leachplant samples with averaged recoveries of approximately 75% across all samples.

Notwithstanding this most acceptable result, in June 2012, BMR concluded a mutually exclusive Memorandum of Understanding ("MoU") with Yunnan Xiangyun Feilong Nonferrous Metal Company ("Feilong") with the intention of forming a joint venture to exploit the resources at Kabwe utilising their technology. Feilong is a significant refiner of zinc, lead and associated metals employing over 7,000 staff based at Xiangyun in Yunnan Province in the Peoples Republic of China which holds numerous international patents in metal processing. It can also design, manufacture, install and commission the beneficiation plants at Kabwe. Feilong and BMR would also look to conclude a long-term product off-take agreement.

LEAD AND ZINC MARKETS

The principal uses of both of these metals are in vehicles, lead in the production of batteries and zinc for galvanising bodywork against corrosion. Global demand is approximately 8 million tonnes for lead and approximately 11 million tonnes for zinc per annum. World production of vehicles has increased from 16.5 million in 1960 to 48.5 million in 1990 and to 80.1 million in 2011, of which China alone produced 18.4 million (source: OICA, Organisation Internationale des Constructeurs D'Automobile). This expanding rate of vehicle production worldwide and China's rapidly growing home market underpins the demand for the metals BMR will be supplying in the years ahead.

COPPER

In December 2011, BMR added copper to its Zambian tailings resources, by signing an Option Agreement giving it the exclusive right to carry out due diligence on three clusters of stockpiles of copper tailings located within a 7km radius of each other at Chingola, about 220km north of Kabwe. Historical Mine closure reports by ZCCM estimated that the total above-ground dump materials remaining in the three areas concerned is approximately 90 million tonnes with copper grades ranging between 0.4% and 1.2%.

In July 2012 BMR concluded negotiations over the first Chingola cluster at the Rephidim site, securing Mining Rights over a total of 397.2 hectares of land containing an estimated 17.5 million tons of copper tailings by signing an Assignment Agreement over an existing Joint Venture agreement. This estimate of resources has been made by BMR's consultants, Mineral Exploration International of Namibia. It is not JORC compliant and therefore cannot be relied upon for economic assessment purposes. The Company is continuing to conduct due diligence over the remaining two clusters while awaiting issuance of the requisite licences.

SHARES AND WARRANTS

On 24 April 2012, BMR agreed to amend the terms of 127,916,666 warrants that were previously amended in connection with the acquisition of stockpiles of lead and zinc tailings at the Kabwe Mine on the 28 March 2011. At the time of acquisition, BMR had agreed to lower the exercise price to 6 pence but reduce the exercise period from 24 November 2012 to 24 April 2012.

Due to delays caused by the moratorium imposed by the Ministry of Mines and Natural Resources, it was agreed that the exercise period would be extended from 24 April 2012 for a further six months until 24 October 2012. As reported below, these warrants have been extended further to 24 April 2013.

In aggregate at the end of the reporting period, the Company has 208.9 million warrants in issue.

On 21 March 2012, following the exercise of share options, 5,330,000 ordinary shares of 1p each were issued.

EVENTS AFTER THE REPORTING PERIOD

BMR has continued to work with Feilong, sending further samples to China following initial confirmations of resources, grades and testing of processing received from Feilong. These include the identification of other recoverable metals in addition to zinc and lead.

In October 2012, BMR commenced a pilot programme intended to produce copper cathode from tailings stockpiles located at the former Bwana Mkubwa mine, Ndola, Copperbelt Province, Northern Zambia by acquiring a 75% shareholding in Ndola Mineral Resources Limited, a newly registered Zambian company, which is in the process of taking transfer of a Prospecting Permit/ Small Scale Mining Licence held by Phoenix Materials Limited who will hold a 25% free carry shareholding. The cash consideration payable by BMR to Phoenix is US$0.3 million. BMR will be the operator in charge of production.

It is estimated by BMR's consultants that the Phoenix stockpiles contain some 4-5 million tonnes of mineralised waste, ore and tailings with copper grades varying between 0.3% and 1.0%. These estimates are not to an internationally recognised standard and they cannot be relied upon for economic assessment purposes. The Company intends to process enough mineralised material from the stockpiles to provide an output of 150 tonnes of copper cathodes per month.

The Company has also concluded a Joint Venture Agreement ("JVA") with the Bwana Mkubwa Consortium, whose members are the holders of five Artisanal licences and own further stockpiles, all located within the former Bwana Mkubwa Mine Site.

In order to carry out the processing at Ndola, BMR is securing an Industrial Zone plot, the site of a former copper production plant, located within a kilometre of all the tailings stockpiles concerned, with all necessary services and infrastructure in place. The Company plans to install a SX-EW copper extraction beneficiation plant there after the verification of the dump materials close to the site.

In August 2012, BMR completed the acquisition of all the remaining surface rights at the Kabwe mine site by way of an assignment of all the interests of Alberg Mining and Minerals Exploration Ltd. The outstanding purchase consideration has been satisfied in full through the payment of £1 million and the issue of 70 million ordinary shares in the Company. 

On 24 October 2012, the Company amended the terms of 127,916,666 warrants by extending the exercise period from 24 October 2012 to 24 April 2013.

RESULTS FOR THE PERIOD

For the year ended 30 June 2012, the loss was £1.5 million before tax compared with a loss of £2.4 million for the prior year. The majority of the loss for the year comprises management and administrative expenses and includes pre acquisition costs of £0.3 million in relation to the Chingola Project. In the prior year, share based payment expenses of £0.7 million and acquisition costs of £0.4 million for Kabwe assets were included in the loss for the year. The cash balance at the year end was £4.4 million (2011: £10.7 million).

The main reason for the decrease in the cash balance in the year were prepayments of £2.2 million (2011: £1 million) relating to the acquisition of additional assets at Kabwe which completed in August 2012 and £2 million (2011: £nil) representing advance payments made for the acquisition of further copper resources and pre-payments for long-lead copper processing equipment.

OUTLOOK

While robust progress was made in the year under review acquiring additional tailings and improving the processing options, the Company suffered delays to its plans following elections in Zambia which were followed by a Licence Moratorium. Although now ended, the Moratorium put back the issuing of the appropriate licences for us to proceed with securing the land we needed to commence production at Kabwe.

We have used the time to research improved beneficiation of our resources of zinc and lead and the other valuable metals that are present in the Kabwe tailings. To ensure we maximise the recovery of valuable metals from our resources we have concluded a co-operative MoU with one of the foremost processors of these metals in the world.

At the same time we have launched a programme to acquire significant copper tailings in the northern Zambia. The processing of copper is a simple, well-established procedure and we are confident we can commence cathode production to provide cash flow in 2013 from these operations.

We have built considerable value during the year under review. BMR will produce lead, zinc and copper from the extensive tailings resources acquired and this will make the Company a cash generative and resilient supplier of base metals to world markets. We look forward to fully rewarding shareholders' patience in the years ahead.

For further information please see the Company's website at http://www.bmrplc.com

Masoud Alikhani

29 November 2012

Chairman

The technical data in this release has been reviewed by Dennis Human, B.Sc. (Hons), Bus. Admin (Hons), MGSSA, Consulting Geologist in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.

BERKELEY MINERAL RESOURCES PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Registered Number 02401127

As at 30 June 2012

CONSOLIDATED CASH FLOW STATEMENT

for the year ended 30 June 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 30 June 2012

Notes to the Preliminary Statement:

1. General information and accounting policies

Berkeley Mineral Resources Plc is a company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is 6 Derby Street, London W1J 7AD.

The principle activity of the Company is acquisition, evaluation and development of mineral stockpiles, in particular tailings. The Group's projects are located in Zambia.

This Announcement is for the preliminary results for the year ended 30 June 2012.

2. Basis of preparation

The financial information contained in this announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, however the information contained in this announcement does not contain sufficient information to comply with IFRS.

The financial statements have been prepared under the historical cost convention. The preliminary announcement has been prepared on a basis consistent with the accounting policies applied to the statutory accounts for the year ended 30 June 2011.

The disclosed figures are not statutory accounts in terms of section 435 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2012, on which the auditor gave an unqualified opinion which did not contain an emphasis of matter paragraph nor statements under sections 498 (2) or (3). The accounts give full disclosure of the Group accounting policies and are scheduled to be posted to shareholders on 28 November 2012 and will be filed with the Registrar of Companies in due course.

Going concern

After making enquiries, the Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis as the Directors are of the opinion that the Group will have sufficient funds to meet their ongoing working capital and committed capital expenditure requirements. In making this assessment, the Directors have considered the Group budgets, the cash flow forecasts and associated risks.

3. The Directors do not recommend the payment of a dividend.

4. The loss per share of 0.14 pence (2011: loss 0.35 pence) has been calculated on the basis of the loss of £1,452,723 (2011: loss £2,386,410) and on 1,009,184,669 (2011: 688,990,923) ordinary shares, being the weighted average number of ordinary shares in issue during the year ended 30 June 2012. At the balance sheet date there were 284,929,073 (2011: 290,259,073) potentially dilutive ordinary shares. Potentially dilutive ordinary shares relate to warrants and share options issued to directors, staff and consultants.

5. Events after the Reporting Period

On the 20 December 2011, the Company signed an Option Agreement which gave BMR the exclusive right to carry out due diligence on three areas ("clusters") each containing stockpiles of copper tailings in the Chingola area in the north of Zambia.

On 3 July 2012 the Company had concluded negotiations over the first Chingola cluster at Rephidim site, by signing an Assignment Agreement over an existing Joint Venture. This site represents one of the three clusters under the Option Agreement. BMR is paying a fee of US$500,000 upon Completion of the assignment of the existing joint venture to BMR. Subsequently, in August 2012, the Company had made definitive offers to the owners of the other two clusters and is now in advanced negotiations with BMR.

The Company has also concluded a Joint Venture Agreement ("JVA") with the Bwana Mkubwa Consortium, whose members are the licencees of five Artisanal licences and own further stockpiles, all located within the former Bwana Mkubwa Mine Site.

In August 2012, BMR completed the acquisition of all the remaining surface rights at the Kabwe mine site by way of an assignment of all the interests of Alberg Mining and Minerals Exploration Ltd. The outstanding purchase consideration has been satisfied in full through the payment of £1 million and the issue of 70 million ordinary shares in the Company. 

In October 2012, after completing due diligence on further substantial copper tailings clusters in Ndola area in Northern Zambia, the Company acquired a 75% shareholding in Ndola Mineral Resources Limited ("NMR"), a newly registered Zambian company, which is in the process of taking transfer of a Prospecting Permit/ Small Scale Mining Licence held by Phoenix Materials Limited ("Phoenix"). Phoenix will hold a 25% free carry shareholding in NMR. The cash consideration payable by BMR to Phoenix is US$300,000. Phoenix currently has a small scale Prospecting Permit but has applied for a Small Scale Licence which will be assigned to NMR when received. The Company has commenced a pilot programme intended to produce copper cathode from the tailings.

On 24 October 2012, the Company has amended the terms of 127,916,666 warrants by extending the exercise period from 24 October 2012 to 24 April 2013.

6. Posting of Report & Accounts

The Company confirms that copies of the annual report and accounts for the year ended 30 June 2012 will shortly be sent to all shareholders and will be available during normal business hours from the offices of Seymour Pierce Limited at 20 Old Bailey, London EC4M 7EN. In addition, the Annual Report and Financial Statement will be available to be downloaded from the Company's website at www.bmrplc.com

7. Change of Registered Office address

The Registered Office of the Company changed to 6, Derby Street, London W1J 7AD in October 2012

8. Annual General Meeting

The Annual General Meeting of the Company will be held at 9.30am on 21 December 2012 at 86 Park Lane Suite, Grosvenor House Hotel, Park Lane, London W1K 7TN. The resolutions proposed can be found in the Notice of Annual General Meeting in the annual report and accounts for the year ended 30 June 2012.