Termination of Areva Heads of Agreement

12 Jan 2010 08:06



12 January 2010

BERKELEY RESOURCES LIMITED

Termination of Areva Heads of Agreement

The Directors of Berkeley Resources Limited ("Berkeley") are pleased to advise that the Company has agreed to terminate the Heads of Agreement which was entered with Areva NC in March 2006. 

As a consequence, any rights previously granted to Areva for off-take or marketing of uranium production from Berkeley's projects have been terminated with immediate effect. 

Importantly, this leaves Berkeley with unfettered capacity to negotiate off-take or marketing rights with other parties - potentially an important element of future project financing.

Berkeley understands that it is Areva's intention to exercise its Berkeley options and dispose of its entire holding of Berkeley shares. In the event that the Areva options are exercised, they will contribute over A$7m to Berkeley's cash position.

Enquiries - Managing Director: Ian Stalker Tel: +27 824 553 442

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