Corporate Overview

Berkeley Resources Limited ("Berkeley") is an ASX and AIM listed exploration and development mining group with two world class uranium development projects in Spain with total gross combined Mineral Resources of 81.3 Mlbs (36.9 Kt) U3O8 (200 ppm cut-off) and net combined Mineral Resources of 76.0 Mlbs U3O8.

Berkeley is an Australian incorporated company which listed on the Australian Securities Exchange in September 2003 and the AIM market of the London Stock Exchange in December 2006.

The Salamanca I Project is a 100% uranium near term development that includes the Stage 1 Retortillo and Santidad deposits and the Stage 2 Satellite deposits (Zone 7, Las Carbas, Cristina and Caridad) as well as Caceres VI area (the Gambuta deposit).

The Salamanca I Project Stage 1 includes:

  • Retortillo deposit with Mineral Resources of 10.1 Mlbs (4.6 Kt) at an average grade of 397 ppm U3O8 (200 ppm cut-off), including 56% Indicated Resources;
  • Santidad deposit with Mineral Resources of 4.2 Mlbs (1.9 Kt) at an average grade of 410 ppm U3O8 (200 ppm cut-off), including 29% Indicated Resources;
  • Combined these two deposits are expected to generate a Net Present Value (8% discount rate) of 136.2M and an Internal Rate of Return of 47% (assuming US$65/lb U3O8): and
  • Total capex over the 10 year life of mine amounting to € 83.7M including the construction of an on-off biological leach pad and processing plant at the Retortillo site capable of handling both Stage 1 and Stage 2 ore volumes.

The Salamanca I Project Stage 2 includes:

  • Retortillo Satellite deposits (Zona 7, Las Carbas, Cristina and Caridad) with Mineral Resources of 5.3 Mlbs (2.4 Kt) at an average grade of 421 ppm U3O8 (200 ppm cut-off);
  • Gambuta deposit with Mineral Resources of 9.2 Mlbs (4.2 Kt) at an average grade of 371 ppm U3O8 (200 ppm cut-off); and
  • Substantial exploration potential in the 100% Berkeley owned Salamanca I permits, including a number of identified anomalies targeted for drilling in 2012.

The Enusa JV Project offers considerable value to shareholders through a 90% owned joint venture company with Enusa Industrias Avanzadas, S.A. ("Enusa") holding the remaining 10%. Following the approval by the Council of Ministers on April 24, 2009, Berkeley paid €5M to acquire the database from Enusa and for the right to conduct further due diligence on the opportunity including a feasibility ahead of deciding whether or not to proceed with a decision to exploit. This positive decision was made on January 18, 2011 and a Mining Domain Conceptual Engineering Report was completed in November 2011 and submitted to Enusa demonstrating the technical end economic feasibility of the project. Upon the formation of NewCo, Berkeley will be obligated to pay an additional €20M to Enusa under the terms of the original agreement (the "Collaboration Agreement"), after which the two companies will work together to obtain the necessary permits and approvals to develop the mine.

The Enusa JV Project includes:

  • Águila area deposits (State Reserves) with net to Berkeley Mineral Resources of 19.7 Mlbs (9.0 Kt) at an average grade of 413 ppm U3O8 (200 ppm cut-off), including 23% Measured and 42% Indicated Resources;
  • Alameda area deposits (State Reserves) with net to Berkeley Mineral Resources of 23.1 Mlbs (10.5 Kt) at an average grade of 469 ppm U3O8 (200 ppm cut-off), including 78% Indicated Resources;
  • Villar area deposits (State Reserves) with net to Berkeley Inferred Mineral Resource of 4.4 Mlbs (2.0 Kt) at an average grade of 446 ppm U3O8  (200 ppm cut-off);

Berkeley has been able to purchase a large volume of exploration data that had been accumulated over many years and has built up a dominant land holding position in Spain.

Since acquiring these tenements, Berkeley has undertaken a substantial exploration program, with highly encouraging progress, including:

  • the compilation and interpretation of a very substantial database of historical exploration results throughout Spain;
  • undertaking numerous diamond drilling and reverse circulation drilling campaigns (>75,000m) across all its major projects; and
  • completing over 5,000 line kilometres of airborne radiometric and magnetic surveys that have been flown over most project areas highlighting the exploration potential of these tenements and generating a significant number of strong anomalies.

Berkeley boasts an outstanding management team with considerable uranium and general mining experience around the world.

Spain is a country with a substantial domestic uranium demand and a recent uranium mining history.