Berkwood Announces Acquisition of Additional Peter Lake Claims and a Non Brokered Financing of $975,000

(via Thenewswire.ca)

Vancouver, B.C., November 1st, 2012 - Berkwood Resources Ltd. (TSX-V: BKR) ( "Berkwood") is pleased to announce that it has signed a Property Option Agreement (the "Agreement") with two individuals (the "Vendors") pursuant to which Berkwood has been granted an option to earn a 100% interest in an additional 53 claims (the "Property") adjoining the Peter Lake Copper Property. These additional claims increase the size of the Peter Lake Property by 3683 hectares to 5086 hectares, for a total of 107 claims.

Property Option Agreement:

Pursuant to the terms of the Agreement, Berkwood has the option to acquire a 100% - interest in the Property by making aggregate cash payments of $160,000, issuing an aggregate of 750,000 Units, each Unit consisting of one common share of Berkwood and one common share purchase warrant (each warrant entitles the holder thereof to acquire one additional common share of Berkwood for a period of twenty four months following the approval by the regulatory authorities at a price of $0.10 per share), and issuing an aggregate of 1,500,000 common shares of Berkwood as follows:

-Berkwood shall pay $10,000 (non-refundable) at the signing of the Agreement.

-Within 14 days after the date of the approval of the agreement by regulatory authorities, Berkwood shall pay an additional $30,000 cash and issue to the Vendors an aggregate of 750,000 Units of Berkwood.

-Six months after the approval by regulatory authorities, Berkwood shall pay an additional $40,000 cash and issue to the Vendors an aggregate of 500,000 additional common shares of Berkwood.

-Twelve months after the approval by regulatory authorities, Berkwood shall pay an additional $40,000 cash and issue to the Vendors 500,000 additional common shares of Berkwood.

-Eighteen months after the approval by regulatory authorities, Berkwood shall pay an additional $40,000 cash and issue to the Vendors 500,000 additional common shares of Berkwood.

Following successful exercise of the Option by Berkwood in accordance with the terms above, Berkwood shall grant to the Vendors, collectively, a net smelter royalty or equivalent ("NSR") of 2% on all metals produced from the Property. Berkwood shall have the right to buy back one per cent (1%) of the NSR at any time by paying to Vendors, collectively, one million dollars ($1,000,000).

Financing:

Berkwood also announces a non-brokered private placement for $975,000 comprising 6 million flow-through common shares without a warrant, at $0.11 cents per common share for gross proceeds of $660,000 and 3.5 million non-flow-through units at $0.09 cents per unit for gross proceeds of $315,000. Each non-flow-through unit shall consist of one common share and one-half of a common share purchase warrant. Each full warrant shall entitle the holder to purchase one additional common share of the company at 15 cents per share for the period of two years from the date of closing. A finder's fee will be payable in accordance with the policies of the TSX Venture Exchange. The terms of the private placement are subject to approval by regulatory authorities.

The proceeds will be used for exploration programs, acquisitions and general working capital.

The technical information in this news release has been reviewed and approved by Alain Moreau, P. Geo., a Qualified Person as defined by National Instrument 43-101.

To view maps and photos of the Peter Lake Copper Property, click the following link: http://www.berkwoodresources.com/peter-lake-copper-property.html

About Berkwood Resources:

In addition to Peter Lake, Berkwood holds a 100% interest in the Company's flagship property, 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).

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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