Berkwood Announces Gold Mineralization Extended 1 km Along Projected Discovery Zone Trend

Berkwood Resources Ltd. (TSX-V: BKR) ("Berkwood" or the "Company") is pleased to announce that its Summer 2012 field program at the Prospect Valley Gold Property ("Prospect Valley") near Merritt, British Columbia, has now been completed. The Prospect Valley Field Team has successfully extended the soil sampling grid, 1 km to the northeast, along the projected Discovery Zone Trend and has completed additional prospecting, trenching, rock sampling and other fieldwork. The soil grid consisted of 10 lines at 100m spacing, with samples taken at 25m spacing along the lines, for a total of 61 soils per line. Several highly anomalous Au areas have been outlined and were targeted in a follow up trenching program. To view the anomaly map click the following link: http://www.berkwoodresources.com/2012-soil-geochemistry.html

A total of 610 soil samples were collected during the program. Results were very encouraging with individual gold values ranging from below detection limit to 953.1 ppb. Final trenching and rock chip sample results are still pending analysis. Samples are being analyzed at Acme Analytical Laboratories (AcmeLabs) in Vancouver. Complete results of the assays, trenching, rock sampling and other fieldwork will be released when received, plotted, and interpreted. To view maps and photos of the 2012 fieldwork click the following link http://www.berkwoodresources.com/prospect-valley-property.html.

R. Brian Buchanan CEO and Director of the Company states: "We are pleased to have completed this exploration phase at Prospect Valley, having now extended the soil grid 1km northeast of the North and South Discovery zones; and having outlined several anomalous areas along the Discovery Zone Trend"

George Gorzynski, P.Eng., a Director of Berkwood and a Qualified Person under the definition of Canadian National Instrument 43-101, is responsible for the technical information in this new release and is monitoring the field program.

The Prospect Valley Gold Property:

Berkwood holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC. Several areas of gold mineralization have been identified on the 10,871 Ha property. The majority of historic drilling has taken place in the centre of the claim block along the Discovery Trend. To date this drilling has outlined an extensive low grade epithermal gold system with indications of potential for additional and higher grade mineralization. The zones remain open for expansion and other known zones of gold mineralization have yet to be drilled. (See Berkwood news release dated January 25, 2012 for details).

About Berkwood Resources:

In addition to Prospect Valley, Berkwood recently acquired an option to earn a 100% interest in The Peter Lake Copper Property. The Peter Lake Copper Property consists of 107 claims totalling 5086 Ha located in the Mont-Laurier Terrane, in the Central Grenville Province, Quebec. Recently six check grab samples were collected from the two main mineralized zones at Peter Lake and returned assays ranging from 0.42% to 22.83% Copper and 0.13% to 0.73% Nickel as well as elevated gold, silver and cobalt values. A phase 1 exploration program is underway on the property consisting of channel sampling and preparation for Bulk Sampling. The planned Bulk Samples are to be taken from the mineralized zones (about 2,000 tonnes) for metallurgical testing, and to determine bulk copper and nickel grades for comparison with mean channel sampling grades to guide future work.

Berkwood also has the option to earn a 100% interest in the Lac Gueret East Graphite Property in Quebec. The 3,186 Ha property borders the eastern boundary of Mason Graphite's advanced Lac Gueret Graphite Project. A 2009 technical report by Tekhne Research which covered 17% of Mason Graphite's Lac Gueret Property estimated a resource of 8.9 million tonnes grading 20.8% Graphite. During prospecting the first Graphite bearing zone at the Lac Gueret East Graphite Property has been discovered. The Graphite bearing zone, which is traceable at surface extends a minimum of 55 metres, has a mean true width of 4-5 metres and is trending NE. Results of the assays from prospecting and other fieldwork will be released when received by the Company.

To view details, maps and photos of all of Berkwood's properties please click the following link: http://www.berkwoodresources.com/properties.html

On Behalf of Berkwood Resources

"Brian Buchanan"

Brian Buchanan, President and Director

For additional information please contact:

Karim Sayani, Corporate Communications

Tel: (604) 662-7455 E-mail: karim@berkwoodresources.com

Tom Steer, Media Relations Manager

Tel: (604) 681-5566 E-mail: tomsteer@berkwoodresources.com

Forward Looking Statements

This Berkwood News Release may contain certain "forward-looking" statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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