BERKLEY RESOURCES INC.

400-455 Granville Street

Vancouver, BC

Canada V6C 1T1

Phone: (604) 682-3701

Fax: (604) 682-3600

Web: www.berkleyresources.com

Info: ir@berkleyresources.com

Q3 INTERIM FINANCIAL STATEMENTS

FOR PERIOD ENDING SEPTEMBER 30, 2006

Shares Traded

TSX Venture Exchange

Symbol: BKS

OTCPK

Symbol: BRKDF

Directors and Officers

Lloyd Andrews, Director & Chairman

Matt Wayrynen, Director, Executive Chairman and CEO

Lindsay Gorrill, Director, President and COO

David Wolfin, Director & VP Finance

Jim O’Byrne, Director & VP Operations

Ron Andrews, Director

Louis Wolfin, Director

Phillip Piffer, Director

Tyrone Docherty, Director

Connie Lillico, Secretary

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these financial statements in accordance with the standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity’s auditor.