Quarterly Update

Berkeley Resources Limited
31 July 2007



                          QUARTERLY ACTIVITIES REPORT

                        To the Australian Stock Exchange

                             For the Quarter Ended

                                 30th June 2007

KEY DEVELOPMENTS

  • Initial JORC compliant resource of 11.9 million lbs of U3O8 at a grade of
    0.072% calculated for the Retortillo and Zona 7 Deposits in the Salamanca I
    license.

  • Initial drill testing extends the Retortillo mineralisation 400 m to the
    southeast.

  • Initial diamond drill testing of the Zona 7 mineralisation and its
    potential for extensions was commenced.

  • Extensions of the Zona 7 ground radiometric anomaly identified a
    significantly larger radiometric anomaly extending beyond the current
    tenements. New tenement applications have been made.

  • Positive results from initial metallurgical test work, with recoveries of
    U3O8   exceeding 90% on all samples.

  • Initial drill testing of the defined Saguazal prospect targets in Caceres
    III was completed.

  • Acquisition of five new exploration areas, increasing the Company's
    holding to over 208,000 ha.

  • Completed a placement of 12.5m shares at $1.85 per share, raising $23.1M
    (£9.65M), with institutional investors in North America, Europe and
    Australia.

•         Mr Scott Yelland joined the Company as Chief Operating Officer.


Enquiries -    Matt Syme           Telephone: [phone]
               Managing Director   Email: [e-mail]


                                ACN 052 468 569

              Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000

                  Tel:  + 618 9322 6322, Fax:  + 618 9322 6558

                     PO Box Z5083, Perth WA 6831,Australia



1.      EXPLORATION

 SALAMANCA PROVINCE

Following  completion of the initial JORC compliant resource calculation of 11.9
million lbs of U3O8  for the Retortillo and Zona 7 Deposits in the Salamanca I
license in early April, exploration in Salamanca Province focussed on drill
testing  potential extensions to the southeast of the main Retortillo resource
and  extending confirmatory drilling at the Zona 7 deposit. Results to date
confirm significant extensions to the Retortillo deposits, including 400m along
strike to the southeast. .

Extensions of the ground radiometric survey at Zona 7 defined  a larger
radiometric anomaly extending >1km to the north of the Mina Cristina area.
Historic radiometric data indicates that this anomaly  extends for another 5km
to beyond the Salamanca I tenement, resulting in new ground acquisition.
Assessment of  low resolution regional radiometrics elsewhere in Salamanca also
resulted in new tenement applications.

SALAMANCA 1

Retortillo

Re-interpretation of the historic JEN and ENUSA drill data, guided by
confirmatory Berkeley diamond drilling provided the basis of 3D models of the
Retortillo and Zona 7 deposits and  calculation of JORC compliant resources
early in the quarter.

The results of this calculation are summarised in the following table.

INFERRED RESOURCES AT RETORTILLO & ZONA 7 (200ppm cut-off)

                            Ore Tonnes                   Grade                 Contained Resource
                               (Mt)                    (ppm U3O8)                  (Mlb U3O8)

    Retortillo                 6.8                        720                         10.8
      Zona 7                   0.62                       760                         1.1
       TOTAL                   7.42                       723                         11.9



Subsequent  extension and confirmatory drilling at Retortillo was focussed in
the southeast sector. Eleven diamond holes (totalling 1053.3m), six RC holes
(totalling 559m) and one roto-percussion hole and six pre-collars (totalling
116m) were completed by the end of the Quarter. This work extended the southeast
limit of mineralisation by 400m and full details, including assays received to
date, are attached as Appendix 1.


Notable intersections (at a cut-off of 200ppm U3O8) include:-

Hole RTO-018

3.00 metres @ 0.0696% U3O8 from 66.50m

9.50 metres @ 0.058% U3O8 from 83.00m

Hole RTO-024

2.30 metres @ 0.035% U3O8 from 60.90m

2.80 metres @ 0.049% U3O8 from 76.00m

Hole RTOR-025

14.00 metres @ 0.0918% U3O8 from 20.00m

Hole RTOR-026

11.00 metres @ 0.0547% U3O8 from 43.00m

Hole RTO-027

2.00 metres @ 0.2467% U3O8 from 62.00m

2.00 metres @ 0.0904% U3O8 from 69.00m

Hole RTO-033

2.05 metres @ 0.132% U3O8 from 63.30m

Hole RTO -035

1.80 metres @ 0.048% U3O8 from 54.8m

All holes were geologically and radiometrically logged before being sampled (1/4
core) at approximately 1m intervals (intervals varied from 0.5 to 1.5m based on
geology) Duplicate 1/4 core samples and blank samples were included and all
samples were assayed for total uranium by the Delayed Neutron Count (DNC) method
at Activation Laboratories Limited in Ontario, Canada. Check assays at other
laboratories (including ENUSA and ALS ChemEx), and acid soluble U assays and Th
analyses, are being completed on selected samples, based on an assessment of the
initial assay data. ALS Chemex analysed approx 5 % of the samples using XRF, and
their results indicate acceptable repeatability and mean percentage differences
of < 6% for <100ppm U3O8.

Results confirm the historical assays and radiometric equivalent grades from
surrounding JEN and ENUSA drilling and, in some instances, have increased both
grade and thickness. In addition, the more detailed geological information
acquired by Berkeley Resources has improved our understanding of the controls
influencing supergene and primary uranium mineralisation.

Step-out drilling on traverses at 100m intervals,  then 200m, extended the
Retortillo mineralisation 400m to the southeast with grades similar to the range
within the main mineralised zone.


A trial IP survey was completed over the Retortillo deposit and initial results
indicated the various lithologies,  particularly the quartzite's, and identified
a NW-SE trending structure which limits mineralisation to the northeast. A
second  NW-SE trending structure  may control the thicker zone of mineralisation
within the deposit. These results will guide angle drilling to better define
structural controls, scheduled for the September Quarter.

The University of Salamanca and University of Granada are studying selected
drill core samples for petrology, mineralogy and clay identification (XRD) which
will aid metallurgical test work and the geological understanding of the
deposit.



Additional geological observations from the core include:

•         The lithology in mineralised holes consists mainly of andalusite
spotted shales.

•         The mineralisation appears to be truncated to the northeast by a
west-northwest trending sub-vertical fault with mainly chlorite spotted shale's
occurring across this bounding fault.

•         To the southwest the shales are truncated by quartzites.



Results from initial metallurgical testwork on two representative samples of
Retortillo mineralisation were received. Test work by SGS Lakefield Oretest
Laboratories in Perth, Western Australia, indicated U3O8   recoveries in excess
of 90% for the sample of strongly oxidised mineralisation after eight hours of
leaching over the entire range of size distribution, up to and including 80%
passing 850 microns. For the sample of weakly oxidised mineralisation,
recoveries exceeded 90% after two hours for the entire size range, and increased
to 93% - 94% after eight hours of leaching.

During the September Quarter the RC/diamond drilling program will continue to
test and infill the southeast extension of the Retortillo deposit, and commence
testing of  radiometric anomalies that occur along the 3km extension of the
Retortillo stratigraphy to the northwest of the Rio Yeltes.

Zona 7

Confirmatory and extension diamond drilling also continued in the Zona 7 area
with a further six (Z7-002 to Z7-007) holes (totalling 360.8m) completed.

Details for these holes, including assays received to date, are included in
Appendix I.


Notable intersections (at a cut-off of 200ppm U3O8) include:-


Hole Z7-001

8.5metres @ 0.2841% U3O8   from 0.0m

Hole Z7-007

8.95metres @ 0.063% U3O8   from 2.0m

9.55metres @ 0.183% U3O8 from 14.8m



Drill results confirm high grade mineralisation outside of the area of the
resource calculation in ZN7-007, but also indicate highly variable distribution
of both mineralisation and grade. Five of the seven holes intersected shallow
mineralisation which occurs in structurally controlled veins with massive
pitchblende and disseminated torbernite.

Extension of the Zona 7 radiometric survey has located larger anomalies which
have been traced beyond the Mina Cristina mineralisation. An assessment of
historical, detailed ground radiometric data shows that this anomaly extends
another 5km to the northeast, adjacent  to the granite contact, and is also open
to the south. These anomalies have been confirmed by initial Berkeley traverses.

Activity in the September Quarter will include reassessment of the Zona 7
mineralisation and field work to generate drill targets within the new northeast
trending anomalous zone.

Assessment of the regional radiometric datasets also identified a zone of
intrusives to the north of our recently acquired north-western Salamanca
tenements with strong radiometric signatures and as a result an application was
made to the Salamanca Mines Department for 4 new tenements, to the north of Zona
7 and to the north of Retortillo, a total of 10,080Ha.



Salamanca II and III

No exploration during the quarter.

CACERES REGION

Exploration in the Caceres region continued with most work concentrated on the
Saguazal prospect in the Caceres III area. Nine diamond drill holes were drilled
within a mineralised area previously tested by CISA in the 1980's with
encouraging results. Vein style uranium mineralisation was identified at the
Zafrilla prospect to the southeast of Saguazal and included in a new tenement
application, adding an additional 4,760 ha to the Berkeley  tenements in the
Caceres Region.





Caceres III

An initial program of 9 diamond drill holes was completed with the aim of
confirming previous high grade intersections and testing potentially mineralised
NE-SW sulphide-bearing structures and other geophysical targets defined by an IP
survey. This program was preceded by background environmental radiometric and
radon surveys.

The IP survey indicated two fracture sets of a NE-SW set with a sulphide (+/-
pitchblende) association, and a NW-SE set without sulphides .

Domal features in the chargeability profiles appear to coincide with the
transition between fresh and weathered rock and the presence of sulphides (from
the old geological drill logs). However, initial reconciliation with drill
results failed to show that either the domal features or IP structures relate to
the mineralisation.

Integration of the new diamond drill results with radiometric data from historic
open hole drilling indicates that high grade uranium mineralisation is
associated with a shallow, sub-horizontal zone of pyrite/marcasite +/-
pitchblende+/- coffinite mineralisation in variably fractured and brecciated
granite.  Recognition of these structural and mineralogical controls enables a
reassessment of all historical data and the opportunity to target new areas for
drill testing along the extensive radiometric anomaly at Saguazal.

Notable intersections (at a cut-off of 200ppm U3O8) include:-

SAG-001          1.0metres @ 0.071% U3O8  from  8.0m

0.5metres @ 0.051% U3O8 from 11.0m

0.5metres @ 0.074% U3O8 from 16.1m

SAG-002          3.5metres @ 0.506% U3O8 from 15.0m

SAG-003          0.5metres @ 0.059% U3O8 from   5.3m  *

SAG-004          8.4metres @ 0.372% U3O8 from 12.3m  *

SAG-005          10.0metres @ 0.362% U3O8 from 13.0m *



Assay procedures for samples from Saguazal have been identical to those
described for Retortillo samples.



*These intervals and assay values differ from estimates based on down hole
radiometrics announced on the 22nd June, 2007. Inspection of drill core
indicates that intervals with anomalous radiometric values, but low uranium
assays, in SAG 003 and SAG 005, coincide with moderate hydrothermal alteration
of granite. Although widths have reduced in the two holes, assays have increased
the grades. In SAG 004, assays have increased both width and grade.


Caceres VI

The main Caceres VI tenement was granted on the 18th June 2007.

Land access negotiations over Ojaranzo and Gambuta are in progress, and are
expected to lead to additional geological mapping, baseline environmental
surveys and an initial diamond drilling program during the September Quarter.



2.      SHARE PLACEMENT

In April, Berkeley issued 12.5 million new ordinary shares at a price of A$1.85
(£0.77) per share, with institutional investors in Europe, the USA, Canada and
Australia.

The issue raised A$23.1M (£9.65M) before expenses and will enable the Company to
expand its exploration programs in Spain, as well as to pursue new business
development opportunities.

The placement was coordinated by RBC Capital Markets as lead manager and sole
bookrunner, with Mirabaud Securities Limited acting as co-manager.



3.      Appointment of CHIEF OPERATING OFFICER

Mr Scott Yelland joined the Company as Chief Operating Officer in early April.
Mr Yelland is a mining engineer with over 25 years experience managing mining
operations around the world, including in Spain.



Mr Yelland will manage the Company's current uranium exploration operations in
Spain as well as providing technical expertise in Berkeley's assessment of other
exploration and development opportunities around the world.


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.



APPENDIX 1:  DRILL HOLES COMPLETION IN THE JUNE 2007 QUARTER

See website:  www.berkeleyresources.com.au


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