Quarterly Report

Berkeley Resources Limited
30 October 2007



                          QUARTERLY ACTIVITIES REPORT
                             For the Quarter Ended
                              30th September 2007

KEY DEVELOPMENTS


  • Discovery of an important new uranium deposit at Santidad, 2km northwest
    of the Company's main Retortillo deposit.

  • At the end of the quarter the flat lying Santidad deposit had dimensions
    of over 700m along strike (still open ended to the north west and south
    east) and 100 to 150m in width, with indications that the structures widens
    to the southeast. Most mineralization occurs within 40m of surface and
    thickness ranges up to 30m.

  • Initial ground radiometric surveys to the northwest of Santidad were
    completed in September, with encouraging results, and are now being extended
    another 3 km along favourable stratigraphy.

  • At Retortillo diamond drilling continued at the northern boundaries of the
    deposit, further defining the structural contacts and geological controls.

  • A revised resource calculation is expected in the December quarter.

  • A contract was signed with Aretech Solutions for the completion of an
    airborne magnetic and radiometric survey over the Salamanca I, Salamanca II
    and Caceres VI areas.


Enquiries - Managing Director:Matt  Syme         Telephone: [phone]

                                       Email: [e-mail]

RBC Capital Markets:          Martin Eales       Telephone: [phone]


SALAMANCA PROVINCE.

Exploration during the quarter focused on diamond and reverse circulation (RC)
drilling at the Retortillo deposit and the new Santidad discovery, located
approximately 2km to the northwest of Retortillo. Two diamond drill rigs and a
track mounted RC drill rig completed  32 diamond drill holes (2,856m) and 56 RC
drill holes (2,092m) for a total of 4,948m of drilling in 88 holes on the two
deposits.

Ground radiometrics are being extended northwest of the Santidad deposit to
cover the strike extension of the favourable Retortillo/Santidad stratigraphy
for a distance of almost four kilometres to a crosscutting granite contact.
Results to date indicate continuation of anomalous radiometrics for a distance
of about 1 kilometre to the northwest of the Santidad deposit before the anomaly
appears to be interrupted and masked by younger Tertiary cover.

Santidad

Testing of the Santidad ground radiometric anomaly commenced in July and
resulted in the discovery of a new deposit 2 km to the northwest of the
Retortillo deposit. By the end of the quarter a continuous zone of
mineralisation had been defined over a strike length of more than 700m by 55 RC
holes and 5 diamond drill holes (totalling 3204m), spaced at 50m intervals along
8 traverses which are located 50-100m apart. The northwest striking zone is open
along strike in both directions and RC and diamond drilling will continue
throughout the December quarter.

The Santidad deposit occurs within a 3km long radiometric anomaly associated
with northwest striking Ordovician slates and shales adjacent to outcropping
quartzites. Its stratigraphic association and radiometric expression are similar
to the Retortillo deposit, and attenuation of the anomaly to the northwest
appears to coincide with younger cover of Tertiary gravels, a mirror image of
the occurrence of Tertiary cover over the southeastern half of the Retortillo
deposit.

Outcropping quartzites indicates that the favourable stratigraphy continues to
the northwest for another 4 km beyond the radiometric anomaly, until terminated
by crosscutting granite. Extensive coverage of this area by ground radiometrics
is in progress.

Consistent results from RC drilling indicate an essentially continuous, flat
lying, near surface body of mineralisation that is approximately 150m wide.

The geology is similar to Retortillo, with host rocks of Ordovician grey-black
shales, bounded to the southwest by sub-cropping to outcropping quartzites.
Shales have a sub-vertical penetrative S1 cleavage with an orientation of 120 to
1400. Uranium mineralisation occurs between 0 and 20m below the surface and can
extends up to about 50m below surface; thin granitic intrusions occur in some
mineralised holes. The dominant uranium minerals appear to be secondary
torbernite and autunite.

A thin cover of quartzite scree and/or the remnants of Tertiary cover is common,
above a thin, weak weathering profile, 1-5m thick. The average thickness to date
is about 12.7m and grades range from 171ppm U3O8 to 3071ppm U3O8, with most
intersections within the range of 300-400ppm U3O8.

 An additional line of holes (SANR-012 to SANR-017) was drilled to test a large
radiometric anomaly four to five hundred metres to the northeast of the Santidad
mineralisation. Intersections in holes SANR-013 and SANR-060, spaced 100m apart
along strike, indicate another zone of mineralisation in shales, which may
represent a lithological repetition across a synclinal axis. This area will also
be tested in the December quarter.

Notable RC intersections, based on chemical assays and   a cut off grade of
200ppm U308, include:-

Hole SANR- 001

9 metres @ 0.036% U308 from 0m

Hole SANR- 007

30 metres @ 0.044% U308 from 5m

Including 10metres @ 0.077% U308 from 21m

Hole SANR- 008

21 metres @ 0.039% U308 from 0m

Hole SANR- 022

5metres @ 0.040% U308 from 29m

Hole SANR- 023

26metres @ 0.040% U308 from 26m

Including 15 metres @ 0.050% U308 from 21m

Hole SANR- 024

8metres @ 0.030% U308 from 21m

Including 2 metres @ 0.080% U308 from 21m

Hole SANR-028

6 metres @ 0.310% U308 from 22m

5 metres @ 0.040% U308 from 36m

Hole SANR- 036

7 metres @ 0.030% U308 from 3m


Hole SANR-037

6 metres @ 0.079% U308 from 9m

3 metres @ 0.046% U308 from 29m

Hole SANR-041

3 metres @ 0.098% U308 from 16m

2 metres @ 0.064% U308 from 42m


In general, there is good correlation between grade estimates based on downhole
radiometric surveys and chemical assays, for those holes where all sample
intervals were assayed - for example:

Hole No                      Radiometric survey                Chemical assay

SANR-023                    13 - 40m @ 0.033%eU3O8       13 - 40m @ 0.037% U3O8

SANR-024                    21 - 29m @ 0.030% eU3O8      21 - 29m @ 0.032% U3O8

SANR-028                    19 - 28m @ 0.132% eU3O8      19 - 28m @ 0.209% U3O8)

However, in some holes where selection of samples for assay was based on
scintillometer assessment of drill chips in the field, and therefore some
intervals were left un-sampled,  significant variations between radiometric and
assayed grades can occur. Variations appear to result from the omission of some
mineralised intervals from samples selected for assay and therefore all
unassayed intervals are now being submitted for analysis. For example: SANR-022
with 9 - 13m @ 0.026% eU3O8 and 29 - 34m @ 0.031 eU3O8,versus 9 - 13m @ 0.019 %
U3O8 and 29 - 34m @ 0.040% U3O8 - assuming 0 for non-sampled intervals. Similar
differences occur in SANR-029 and SANR-024.

The veracity of the RC drill results has been tested by twinning of vertical RC
hole SANR-007 with vertical diamond hole SAN-061. In addition, a traverse of 5
diamond holes (SAN-042 to SAN-046) was drilled between adjacent traverses of RC
holes (SANR-007 to SANR-009 to the southeast and SANR-027 to SANR-029 to the
northwest). Comparison of the downhole radiometrics for SANR-007 and SAN-061
indicate very good correlations and point to the integrity of RC drill results.
However, assay results for SAN-061 have recently been received and indicate
lower average grade over a similar, but reduced, intersection width (SAN-061:
7.0 to 31.0m - 24.0m @ 0.0219% U3O8; RC hole SANR-007: 5.0 to 35.0m - 30.0m @
0.0438%).

There are several factors that may account for this difference, including:
inherent variability within the deposit; the less representative samples from
SAN-061 (half core versus homogenised total hole material in RC samples); loss
of secondary uranium minerals from SAN-061 during  drilling and cutting of core;
and possible variability in the integrity of the RC face-sampling hammer method.
These alternatives are being addressed in the current quarter by means of
additional twinned holes and more detailed analysis. When results become
available for the diamond traverse (SAN-042 to SAN-046) they will enable
independent calibration of downhole radiometrics versus assays for diamond holes
at Santidad, and comparison of correlations for the two drilling methods.

Retortillo

Twenty seven diamond drill holes (totalling 2,544m) and a single 100m RC hole
were drilled at Retortillo during the quarter.  This work was focussed on
extending the deposit to the south-east, and improving definition of previously
drilled areas prior to a new resource estimate in the December quarter.

South East Extension

Drilling on traverses spaced at 100-200m intervals extended the deposit by about
400m to the south-east to line 128E. The mineralisation appears to narrow and
deepen as it plunges to the south-east beneath thicker Tertiary cover. The
sixteen hole program (total of 1,358m) tested the stratigraphy along strike to
144E.

Notable intersections (at a cut off grade of 200ppm U308) include:-

Hole RTO-042

2.55metres @ 0.079% U308 from 77.2m

5.0metres @ 0.080% U308 from 81.5m

3.6metres @ 0.022% U308 from 91.5m

Hole RTO - 055

2.0metres @ 0.337% U308 from 56m


Retortillo Definition Drilling

The remainder of the drilling at Retortillo was designed to upgrade resources
and increase confidence in the geological, structural and mineralogical
interpretations for the new resource estimate. Four holes (totalling 394m), were
drilled in the central and southern areas of the  deposit to establish
continuity of  mineralisation, and eight angled diamond drill holes (totalling
892m) were completed on traverses  65E, 70E, 84E and 96E, to determine  the
location and nature of the north-east boundary.



Results from the angled holes indicate extensions of mineralisation to the north
and at depth and an absence of bounding structures. It now appears that the
sharp northern boundary of the Retortillo mineralisation may be controlled by
lithology, rather than structure.

Progress assays include the following intersections (at a cut off grade of
200ppm U308):-

Hole RTO-051

13metres@ 0.161% U308 from 24.0m

1.0metre@ 0.020% U308 from 27.0m

Hole RTO-052

10.3metres@ 0.161% U308 from 24.7m

4.0metres @ 0.098% U308 from 43.0m

1.0metre @ 0.031% U308from 51.0m

Hole RTO-056

8.0 metres @ 0.053% U308 from 18.0m

2.0metres @ 0.024% U308 from 33.0m

8.0metres @ 0.067% U308 from 37.0m

2.0metres @ 0.105% U308 from 49.0m

Salamanca II

A preliminary assessment of the Barquilla area was undertaken. Secondary uranium
minerals were observed on surface in several locations suggesting that this
license area has significant exploration potential. It is anticipated that the
tenement will be granted in the December Quarter and a programme of ground
radiometrics will be initiated and followed by a drilling programme which will
also incorporate targets from the forthcoming airborne survey.

Salamanca III

No exploration during the quarter.

CACERES PROVINCE

A topographic survey at Saguazal (Caceres III) was completed to assist with,
interpretation of the encouraging drill results reported in the June quarter.
Early stage geological work at Caceres VI identified several new prospects, in
particular Gambuta, where positive results were reported in down hole
radiometrics from RC drilling in 1992, More detailed work at Caceres VI is
planned for the December quarter.



Caceres III

A detailed topographic survey located all Berkeley drill collars as well as many
of the historical drill collars and enabled an improved interpretation of the
recent drill results. It indicates that a shallow north-dipping, clay-filled
structure provides a base to the mineralised zone which appears to be a
flat-lying explosive breccia zone in which the uranium occurs in association
with pyrite, some of which is also brecciated. Associated wall rock
mineralisation is minimal, while more widespread potassic alteration has no
apparent association with mineralisation.

The implications of this interpretation are being considered in terms of
prospectivity elsewhere along the Saguazal radiometrically anomalous zone.



Caceres VI

Land access agreements are currently being negotiated for all of the significant
prospects, including the Gambuta and Ojaranzo mineralised zones (previously
drilled by ENUSA and Areva), and the timing of these agreements will determine
the level of work in the December quarter.

The recently identified Gambuta prospect in the western part of Caceres VI
appears similar to Ojaranzo, with uranium mineralisation in steeply dipping
shales. However, the presence of Tertiary cover suggests significant additional
potential at Gambuta where percussion drilling by CISA, and associated
radiometrics, indicate mineralisation over an area of approximately 900 x 550m.
A programme of ground radiometrics and initial drill testing is planned once
access arrangements are finalised.

Reconnaissance work has located several other radiometric anomalies in small
windows in the Tertiary cover in geologically favourable positions and
additional tenement applications are being prepared.

AIRBORNE GEOPHYSICAL SURVEY

A contract with Aretech Solutions for the flying of a 5500 line kilometre, low
level, close-spaced airborne magnetic and radiometric survey was signed on the
6th September. This survey will cover Salamanca I, part of the Salamanca II, and
the Caceres VI and Toledo II areas. It is expected to commence at the beginning
of November. This survey has two objectives: to better define controlling
structures and host lithologies associated with uranium mineralisation; and to
provide direct and indirect criteria for targeting new areas with potential for
mineralisation, particularly in areas of partial or complete cover.



The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Mr Peter Ellis,
who is a Member of The Australian Institute of Geoscientists and a consultant of
Berkeley Resources Limited. Mr Ellis has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Ellis consents to the inclusion
in the report of the matters based on his information in the form and context in
which it appears.


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