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 May 01, 2008
Berkley Announces 2007 Reserves, Financials and Production Results

 Berkley Resources Inc. ("Berkley" or the "Company") is pleased to announce its 2007 year-end reserves as evaluated by AJM Petroleum Consultants Ltd. ("AJM" or "Independent Engineers") for all of Berkley's oil and gas properties in accordance with National Instrument 51-101 ("NI 51-101"). Berkley has filed its Form 51-101F1 -- Statement of Reserves Data and Other Oil and Gas Information for its year ended December 31, 2007, Form 51-101F2 -- Report of Independent Qualified Reserves Evaluator and Form 51-101F3 -- Report of Management and Directors, all under National Instrument 51-101. These filings can be accessed electronically from the System for Electronic Document Analysis and Retrieval (SEDAR) website:

Highlights of Berkley's 2007 Reserves Report (the "Reserves Report") - all dollar amounts in $000's. 1BOE = 1bbl Oil = 6mcf Gas = 1bbl NGL

2007 2006
Barrels of oil equivalent (BOE) P+P 236,900 258,400
Present value at 10% discount $ 4,208 $ 3,367

The 2007 AJM Reserve Report reduced the number of Proved plus Probable recoverable BOEs by 21,000 from 2006 but increased the value of those reserves by $900 based on AJM's increased pricing forecast.

Q4 2007 Activity Report

During the 4th quarter of 2007, Berkley did not participate in any new wells being drilled on its projects. Berkley's partner OneFour in the Senex play is currently evaluating the project and focusing on the enhancement of production from the completed wells. Berkley is currently waiting for a new hearing date on permitting its Crossfield project.

Unaudited Interim Financial Results

Berkley has completed its estimate of fourth quarter financial results and releases the following unaudited financial information:

•Production during Q4 ending December 31, 2007 averaged 69 BOE/d, 14% decrease over 2006. The Q4 production is broken out as follows: 23% natural gas and 77% crude oil & NGL's. Average production for the year 2007 was 76 BOE/d, a 5% decrease over 2006.

•Gross revenue during the 3 months period was $472 thousand as opposed to $382 thousand in 2006. Total 2007 gross revenue was $1.7 million, whereas total revenues in 2006 were $1.5 million, a 13.3% increase.

•Cash flow from operations in Q4 is estimated to be $515 thousand ($0.02 per share) for an annual 2007 negative cash flow of ($222) thousand or ($0.01) per share.

•Operating costs remained steady at $26.62 per BOE in Q4 with the total year 2007 operating cost averaging $26.64 per BOE.

•The Q1 2008 draft numbers for Gross/Net revenue, Average BOE/d and Average Operating Cost on a BOE/d basis were not available at the time of this release. These will be made available to shareholders at the earliest date possible.

Financial Summary

Year Ended Three Months Ended
December 31, December 31,
2007 2006 2007 2006
Financial ($000 except for per share amounts)
Petroleum & Natural gas sales 1,716 1,568 472 378
Funds from (used in) operations (222) 356 515 112
Per share (0.01) 0.02 0.02 0.01
Net Earnings (loss) (3,526)(3,154) (2,377)(1,977)
Per share (0.10) (0.22) (0.11) (0.135)
Working Capital (1) (684) (3,190) (684) (3,190)
Capital expenditures 2,382 6,739 601 6,739
Total assets 5,772 11,897 5,772 11,897
Shareholders' equity 4,635 7,299 4,635 7,299

Working capital includes debt which was retired in 2007 from the sale of the building in the amount of $3.38 million.

Full details of the financial results, MD&A, and reserve report are available for viewing on either the Company's website or SEDAR's website

2008 Outlook

Berkley is reworking its business plan for 2008 as it takes a detailed assessment of its two major projects Senex and Crossfield. Senex is in an evaluation and enhancement stage and Crossfield is waiting for the government to provide the Company with a new hearing date for the drilling permit for the project. The Company feels positive towards each project and will continue to participate in both in 2008.

In light of current industry wide factors (such as weaker/stronger commodity prices) that may adversely/positively affect junior oil and gas companies, management will continue to review accretive opportunities that would result in a stronger corporate entity going forward.

The term barrels of oil equivalent "BOE" may be misleading, particularly if used in isolation. The BOE conversion ratio used by Berkley of 6 mcf of gas: 1 bbl of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions herein are derived by converting gas to oil in the ratio of six thousand cubic feet of gas equals one barrel of oil.

This information contains forward-looking statements (forecasts) under applicable securities laws. Forward looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

Berkley Resources Inc. is a Junior Oil & Natural Gas exploration, development and production company based in Calgary, Alberta. The Company's operations are focused in Western Canada. Berkley's shares are listed for trading on the TSX Venture Exchange under the symbol BKS

"Matt Wayrynen"
Matt Wayrynen

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contend of this news release

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