?2.05m Placing & Issue of Equity

BERKELEY MINERAL RESOURCES PLC

("BMR" or "the Company")

ACQUISITION UPDATE

£2.05m PLACING & ISSUE OF EQUITY

Berkeley Minerals Resources plc, the AIM listed company that is primarily engaged in processing mining tailings, is pleased to announce that the initial indications from the metallurgical due diligence at the Kabwe Mine in Zambia, show that the metal contained in the washplant dumps meets all expectations.

Pursuant to the announcement made on 19 August 2010, the Company has conditionally placed a total of 136,666,666 new ordinary shares (the "Placing Shares") in the capital of the Company (the "Ordinary Shares") at a placing price of 1.5 pence per share (the "Placing") to raise £2,050,000 gross of expenses. For every two placing shares subscribed, the placees are being issued a warrant exercisable at 3p. The placing proceeds are to be used in connection with the Company completing the acquisition of the rights to process the stockpiles of lead and zinc at the Kabwe Mine.

The Placing Shares will rank pari passu with all existing Ordinary Shares in the capital of the Company, and application will be made for the Placing Shares to be admitted to trading on AIM ("Admission"). Admission is expected to commence on 1 September 2010, when the enlarged issued share capital of the Company will total 502,450,863 Ordinary Shares (the "Enlarged Share Capital").

Following the Placing, the above figure of 502,450,863 Ordinary Shares may be used by shareholders of the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Berkeley Minerals Resources under the Financial Service Authority's Disclosure and Transparency Rules.

31 August 2010

Contacts:

Masoud Alikhani, Chairman, Berkeley Mineral Resources 020 7408 1181

Stewart Dickson / Jonathan Wright, Seymour Pierce 020 7107 8000

Michael Padley / Gary Middleton, Lothbury Financial Services 020 7868 2010