Beowulf Regulatory News (BEM)

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2 August 2021

Beowulf Mining plc

("Beowulf" or the "Company")

£100,000 investment in Vardar Minerals

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to announce that the Company has invested a further £100,000 in Vardar Minerals Ltd ("Vardar"). The investment increases the Company's ownership in Vardar from 48.4 per cent to approximately 49.4 per cent.

2021 Drilling Programme

To date, Vardar has been unable to commence the planned summer drilling programme, as it awaits final approval of its licence applications. The Independent Commission on Mines and Minerals ("ICMM") Board, the body that administers mineral licence permitting in Kosovo, renews licences and issues new licences, reached the end of its members' elected terms approximately one year ago. The selection of a new board has been delayed, firstly by COVID related disruptions and secondly by Kosovo's parliamentary elections, which took place in February 2021. This selection process has now started and Vardar expects the ICMM Board to be in operation by the end of September 2021 and, thereafter, the backlog of applications to be processed with some urgency.

On 30 July 2020, Vardar submitted its licence renewal applications for Mitrovica and Viti on time and these applications were approved by the pre-board process and are ready for signature by the ICMM Board. In anticipation of the licences being re-issued, the ICMM approved the geophysics programme at Mitrovica undertaken in Q3 and Q4 2020 and the building of access roads and drilling platforms ahead of the planned drilling on the lead-zinc targets at Wolf Mountain and gold targets at Majdan Peak.

Assuming that the licences will be approved by the ICMM Board in late September, Vardar is hoping to be able to use two diamond drill rigs to complete the planned drilling programme prior to the onset of Winter. These plans remain contingent on securing two rigs once the licences are issued. Beowulf's investment is funding advance procurement of necessary support equipment.

New Licence Application

Vardar has submitted an application for a new exploration licence area which has been approved by the pre-board process and is ready for signature by the ICMM Board. The application covers an area of 87 square kilometres, extends to the north and northeast of the Mitrovica Project, and includes several areas with significant alteration associated with Oligo-Miocene magmatics along with associated gossans and evidence of historical artisanal workings. The licence encompasses the extension of a distinct northwest trending zone of lead-zinc-silver ("Pb-Zn-Ag") mineralisation from the Stan Terg deposit through the Wolf Mountain target. Plans are being drawn up for a comprehensive ground based and airborne drone exploration programme in spring 2022.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"The Company was pleased to see another democratic election take place in Kosovo earlier this year and we have had to be patient while the new Government takes office and learns about the importance of Kosovo's developing mining sector.

"It's good to know that the formation of the new ICMM Board is underway and Vardar and Beowulf have been working with the British Embassy in Pristina, and other exploration companies, to ensure that the Government understands the excessive time we have been waiting for licence approvals and the importance of giving investors in Kosovo confidence in legal and regulatory processes.

"The Vardar team is now adjusting its plans for an intense drilling programme in the Autumn, about 3,300 metres into lead-zinc targets at Wolf Mountain and gold targets at Majdan Peak.

"I look forward to providing further updates on progress in Kosovo."

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About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM market of the London Stock Exchange and the Spotlight Exchange in Sweden. The Company listed in Sweden in 2008 and is approximately 73.4 per cent owned by Nordic shareholders.

The Company's purpose is to be a responsible and innovative company that creates value for our shareholders, wider society and the environment, through sustainably producing critical raw materials needed for the transition to a Green Economy and to address the Climate Emergency.

The Company's asset portfolio is diversified by commodity, geography and the development stage of its various projects and features metals in demand, including iron ore, graphite, copper, lead, zinc and precious metals.

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecasts.