Beowulf Regulatory News (BEM)

21 May 2007 08:00

BEOWULF MINING PLC (the "Company" or "Beowulf") RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 CHAIRMAN'S STATEMENT

The directors are pleased to present the Company's final results extracted from the audited report and accounts for Beowulf Mining plc for the year ending 31 December 2006. It has been a year of steady progress. Beowulf now has six projects in northern Sweden and has added iron, titanium and uranium targets to its portfolio.

Sweden has an attractive operating environment with a long

exploration and mining history a favourable fiscal regime, including an effective 28 per cent tax rate, no royalties and significant government grants. It is experiencing a major exploration boom, largely created by the demand for commodities from China and India.

On the 31 March 2006 Beowulf raised ‚£500,000 before expenses by the issue of 10,000,000 shares at 5p per share to City Equities Limited.

On the 29 June 2006 Beowulf appointed City Capital Securities Limited as joint broker to the Company. King & Shaxson Capital Limited also remains as a broker to the Company.

In March 2006 the Swedish state mining authority, Bergsstaten, granted an exploration permit to Beowulf for a new area within the Jokkmokk County, called Ruoutevare. The permit covers a large deposit of iron and titanium. The resource reported in the latest study in 1975 by the Geological Survey of Sweden (SGU) are estimated at 116 million tonnes with an average 38.2% Fe (iron), 5.6% Ti (titanium) and 0.17% V (vanadium). A richer section of 20 million tonnes is registered with a grade of 47% Fe, 11% TiO2 and 0.15% V2O5. These figures are based on analytical results of 32 drill holes and do not follow present JORC or NI43-101 standards. The resource, was verified by Snowden Mining Industry Consultants Limited, after a study for Beowulf released in July 2006. Conceptual studies by Raw Material Group (RMG) for Beowulf generated positive results suggesting an extraction rate of 10 million tonnes per year could be economic. Studies relating to concentrate transportation are ongoing.

In May 2006 an exploration permit of 500 hectares covering the Kallak iron deposit located in the Norrbotten county of northern Sweden was granted to Beowulf. The deposit which is up to 100 m wide, consists of magnetite and some hematite extending in

north-south direction for about 1,000 m. The Kallak Iron deposit was discovered by the SGU in 1947-48. Only scattered drilling has been carried out and no mining activity has been registered. SGU calculations based on geophysical data (gravimetry) have indicated mineralization of 92 million tonnes with 35-42 % Fe, 0.004% P (phosphorus), 0.6% S (sulphur) and 0.4% Mn (manganese).

During 2006 10 diamond drill holes were completed on the Grundtrƒ¤sk gold project , with encouraging gold grades. The directors now believe the area has potential for a significant, shallow depth, gold resource. The prospect is now known to be over 800 metres in strike length and is open at depth and along strike, and is located in an area of good access and infrastructure. Whilst exploration risk is still significant, geophysics indicate a strike length of two kilometres and other significant geophysical anomalies lead the directors to believe the gold mineralised zone is larger than presently defined.

In January 2007, Beowulf announced that a new exploration licence, defined as "Ballek 5" and located in the municipality of Arjeplog in northern Sweden, had been registered with the Swedish state mining authority, Bergsstaten. It was issued as a licence on 27 March 2007, and covers 1,200 hectares and directly borders the Company's Ballek 2 licence. With the new licence the total Ballek project area now covers 10,600 hectares. In the early 1970's the SGU made a discovery of uranium mineralisation called W. Rebraur in the Ballek 5 licence area. 15 drill holes were completed and uranium mineralisation was confirmed over a distance of 150 metres. The mineralised zone ranges in width between 1 metre and 8 metres with grades reaching 700 ppm (0.07%) uranium. Surface boulders with between 0.1% and 0.5% uranium were found by the SGU. At the 2006 annual prize ceremony of the "Mineraljakten" ("The mineral hunt"), a competition organized by the Geological Survey of Sweden and open to private prospectors to find new mineral prospects of economic interest in northern Sweden, a top prize was awarded to a local prospector for the discovery of a boulder with unusually high grades of copper (14.9%), gold (4.52 grams/tonne) and silver (196 grams/tonne). The boulder was found within the Ballek licence area.

Beowulf has previously reported on uranium finds on the Ballek licence and we are hoping to locate an IOCG (iron

oxide-copper-gold deposit) at Ballek as these types of deposits are often accompanied by uranium.

Other exploration assets include Jokkmokk and Ussalahti. Beowulf believes that geological evidence suggest that Jokkmokk has potential for an IOCG deposit and Ussalahti has potential for a massive sulphide copper gold deposit. Little work has been conducted over these two areas in 2006 and Beowulf is evaluating its options for further testing of these projects.

Beowulf holds 7.5 million shares in Agricola Resources PLC and 5 million shares in All Star Minerals PLC both of which are Plus-quoted securities. Beowulf purchased 67,000 shares in the ASX Listed Sunvest Corporation Ltd during 2006.

I would again like to thank our shareholders for their continuing support and my fellow directors for their efforts during 2006. I am very optimistic about the opportunities for 2007. Beowulf has received a lot of interest from other companies about joint ventures on most of its properties.

Dr. Robert Young Chairman 18 May 2007 BEOWULF MINING PLC PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 Notes ‚£ ‚£ Administrative expenses (338,286) (354,875) Other operating income 250 - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Operating loss 2 (338,036) (354,875) Other interest 3 19,760 13,896 receivable and similar income ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Loss on ordinary (318,276) (340,979) activities before taxation Tax on loss on ordinary 4 - - activities ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Loss on ordinary 11 (318,276) (340,979) activities after taxation ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Loss per share (0.50)p (0.65)p ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Diluted loss per share (0.35)p (0.42)p ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BEOWULF MINING PLC STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 Notes ‚£ ‚£ Loss for the financial (318,276) (340,979) year Unrealised (deficit)/surplus on trade (204,158) 239,063 investment ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Total recognised gains and losses (522,434) (101,916) relating to the year ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ BEOWULF MINING PLC BALANCE SHEET AS AT 31 DECEMBER 2006 2006 2005 Notes ‚£ ‚£ ‚£ ‚£ Fixed assets Intangible assets 5 232,894 145,632 Tangible assets 6 2,100 402 Investments 7 227,405 351,563 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 462,399 497,597 Current assets Debtors 8 17,348 16,357 Cash at bank and in hand 495,653 439,982 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 513,001 456,339 Creditors: amounts 9 (24,984) (7,586) falling due within one year ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net current assets 488,017 448,753 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Total assets less current liabilities 950,416 946,350

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Capital and reserves

Called up share capital 10 663,982 560,982

Share premium account 11 2,361,482 1,987,982 Revaluation reserve 11 122,405 276,563 Capital contribution 11 46,451 46,451

Profit and loss account 11 (2,243,904) (1,925,628) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Shareholders' funds - 12 950,416 946,350

equity interests ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ BEOWULF MINING PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 ‚£ ‚£ ‚£ ‚£ Net cash outflow from operating (267,006) (323,061) activities Returns on investments and servicing of finance Interest received 19,760 13,896 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net cash inflow for returns 19,760 13,896 on investments and servicing of finance Capital expenditure Payments to acquire (141,367) (81,570) intangible assets Payments to acquire tangible (2,216) (350) assets Payments to acquire (30,000) - investments ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net cash outflow for capital (173,583) (81,920) expenditure ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net cash outflow before (420,829) (391,085) management of liquid resources and financing Financing Issue of ordinary share 503,000 654,869 capital Cost of share issue (26,500) (18,532) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Issue of shares 476,500 636,337 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net cash inflow from 476,500 636,337 financing ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Increase in cash in the year 55,671 245,252 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ BEOWULF MINING PLC NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006 1 Reconciliation of operating loss to net cash 2006 2005 outflow from operating activities ‚£ ‚£ Operating loss (338,036) (354,875) Depreciation of tangible assets 518 75 Amortisation of intangible assets 54,105 38,859 Increase in debtors (991) (9,748) Increase in creditors within one year 17,398 2,628 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Net cash outflow from operating activities (267,006) (323,061)

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 2 Analysis of net funds 1 Cash Other 31 January flow non-cash December 2006 changes 2006 ‚£ ‚£ ‚£ ‚£ Net cash: Cash at bank and in hand 439,982 55,671 - 495,653 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Bank deposits - - - - ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Net funds 439,982 55,671 - 495,653 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

3 Reconciliation of net cash flow to movement 2006 2005 in net funds ‚£ ‚£ Increase in cash in the 55,671 245,252 year ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Movement in net funds in the year 55,671 245,252 Opening net funds 439,982 194,730 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Closing net funds 495,653 439,982 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ BEOWULF MINING PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 1 Accounting policies 1.1 Accounting convention

The financial statements are prepared under the historical cost

convention modified to include the revaluation of investments.

1.2 Compliance with accounting standards The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated). 1.3 Intangible fixed assets - exploration costs Expenditure on the acquisition costs, exploration and evaluation of interests in licences including related overheads are capitalised. Such costs are carried forward in the balance sheet under intangible assets and amortised over the maximum period of the licences in respect of each area of interest where: a) such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its sale. b) exploration activities have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active operations in relation to the areas are continuing. An annual impairment review is carried out by the directors to consider whether any exploration or development costs have suffered impairment in value and if necessary provisions are made accordingly. Accumulated costs in respect of areas of interest, which have been abandoned are written off to the profit and loss account in the year in which the area is abandoned. Exploration costs are carried at the lower of cost and net realisable value. 1.4 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows: Plant and equipment 25% on reducing balance 1.5 Investments

Fixed asset investments are stated at open market value. The

revaluation adjustment is taken to the revaluation reserve.

1.6 Deferred taxation The accounting policy in respect of deferred tax has been changed to reflect the requirements of FRS19 - Deferred tax. Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. A deferred tax asset is not recognised unless recovery is expected in the foreseeable future. 1.7 Foreign currency translation Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account. 2 Operating loss 2006 2005 ‚£ ‚£ Operating loss is stated after charging: Amortisation of intangible assets 54,105 38,859 Depreciation of tangible assets 518 75 Loss on foreign exchange transactions 1,238 1,152 Auditors' remuneration 5,425 5,250 Remuneration of auditors for non-audit work 1,600 17,408 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 3 Investment income 2006 2005 ‚£ ‚£ Bank interest 19,760 13,896 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 4 Taxation 2006 2005 ‚£ ‚£ Current tax charge - - ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ The company has estimated losses of ‚£ 784,000 (2005: ‚£ 479,500) available for carry forward against future trading profits. 5 Intangible fixed assets Exploration costs ‚£ Cost At 1 January 2006 209,499 Additions 141,367 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 31 December 2006 350,866 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Amortisation At 1 January 2006 63,867 Charge for the year 54,105 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 31 December 2006 117,972 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net book value At 31 December 2006 232,894 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 31 December 2005 145,632 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 6 Tangible fixed assets Plant and equipment ‚£ Cost or valuation At 1 January 2006 541 Additions 2,216 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 31 December 2006 2,757 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Depreciation At 1 January 2006 139 Charge for the year 518 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 31 December 2006 657 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ Net book value At 31 December 2006 2,100 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 31 December 2005 402 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 7 Fixed asset investments Unlisted investments ‚£ Cost or valuation At 1 January 2006 351,563 Additions 80,000 Revaluation (204,158) ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ At 31 December 2006 227,405 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Net book value At 31 December 2006 227,405 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ At 31 December 2005 351,563 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ The stated investments relate to the following: 7,500,000 ordinary 1p shares in Agricola Resources Plc. The investment has been revalued to its market valuation at the year end of 1p per share. 5,000,000 ordinary 1p shares in All Star Minerals Plc which were gifted to the company on 31 January 2006. The investment has been revalued to its market valuation at the year end of 2.375p per share. 67,000 ordinary shares in Sunvest Corporation Limited, an Australian Company, acquired 28 September 2006. The investment has been revalued to its market valuation at the year end of 48.30p per share. 8 Debtors 2006 2005 ‚£ ‚£ Other debtors 10,556 10,161 Prepayments and accrued income 6,792 6,196 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 17,348 16,357 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 9 Creditors: amounts falling due within one 2006 2005 year ‚£ ‚£ Trade creditors 7,117 - Taxes and social security costs 2,076 2,313 Other creditors 5,201 773 Accruals and deferred income 10,590 4,500 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 24,984 7,586 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 10 Share capital 2006 2005 ‚£ ‚£ Authorised 200,000,000 Ordinary shares of 1p each 2,000,000 2,000,000 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

Allotted, called up and fully paid 66,398,247 ordinary shares of 1p each 663,982 560,982 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

On 30 March 2006 10,000,000 ordinary shares of ‚£0.01 each were allotted and fully paid at a premium of ‚£0.04 each for cash consideration to provide additional working capital. On 4 April 2006 150,000 ordinary share options of ‚£0.01 each were exercised at par for cash consideration to provide additional working capital. On 10 April 2006 150,000 ordinary share options of ‚£0.01 each were exercised at par for cash consideration to provide additional working capital. Total issue costs amounted to ‚£26,500 during the period. At the balance sheet date the following share options were in issue: 13,700,000 ordinary ‚£0.01 shares exercisable at up to ‚£0.01p up to 31 March 2008. 11,111,111 ordinary ‚£0.01 shares exercisable at ‚£0.055p up to 6 April 2007 - these options have now lapsed. 11 Statement of movements on reserves Share Revaluation Other Profit and premium reserve reserves loss account (see account below) ‚£ ‚£ ‚£ ‚£ Balance at 1 January 2006 1,987,982 276,563 46,451 (1,925,628) Retained loss for the year - - - (318,276) Premium on shares issued 400,000 - - - during the year Share premium - other (26,500) - - - movements Revaluation during the - (154,158) - - year ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Balance at 31 December 2,361,482 122,405 46,451 (2,243,904) 2006 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Other reserves Capital contribution reserve Balance at 1 January 2006 & at 31 December 2006 46,451 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

12 Reconciliation of movements in shareholders' 2006 2005

funds ‚£ ‚£ Loss for the financial year (318,276) (340,979) Other recognised gains and losses (154,158) 276,563 Proceeds from issue of shares 503,000 654,869 Cost of share issue written off to share (26,500) (18,532) premium account ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Net addition to shareholders' funds 4,066 571,921 Opening shareholders' funds 946,350 374,429 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬

Closing shareholders' funds 950,416 946,350 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 13 Directors' emoluments 2006 2005 ‚£ ‚£ Emoluments for qualifying services 55,083 52,000 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢

14 Transactions with directors During the year the company paid Ed Taylor Consulting Limited fees amounting to ‚£12,367 (2005 - ‚£9,506). Mr E Taylor is director and shareholder of this company. No amounts were outstanding at the year end (2005 - nil). During the year the company paid exploration fees of ‚£61,255 (2005 - ‚£48,616) to Geoexperten, a business owned by Dr Jan-Ola Larsson. Further fees paid to Dr Jan-Ola Larsson during the year amounted to ‚£40,442 (2005 - 39,167). No amounts were outstanding at the year end (2005 - nil). All the above transactions were undertaken on a commercial basis. During the year the company incurred expenditure which was recharged directly, at no profit or loss, to Agricola Resources Plc, a company in which Dr R D Young, Mr A C R Scutt and Dr Jan-Ola Larsson are directors. A balance of ‚£4,260 (2005 - nil) was due from Agricola Resources Plc at the year end. During the year the company was gifted 5,000,000 ordinary 1p shares in All Star Minerals Plc. Dr R D Young is a director of the company. 15 Employees Number of employees The average monthly number of employees (including directors) during the year was: 2006 2005 Number Number Directors 4 4 Other - 1 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 4 5 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ Employment costs 2006 2005 ‚£ ‚£ Wages and salaries 68,583 56,500 Social security costs 7,013 5,823 ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ ¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬¢â€â‚¬ 75,596 62,323 ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ ¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢¢â€¢ 16 Related party transactions During the year the company acquired 67,000 shares in Sunvest Corporation Limited, an Australian Company, these shares were acquired for ‚£30,000. Sunvest Corporation Limited owns 16.9% of the ordinary share capital of Beowulf Mining plc.

For further information contact :

Dr Robert Young, Beowulf Mining plc Tel. +44 (0) 1353 649 701

Mr Gavin Burnell, Ruegg & Co Limited Tel. +44 (0) 207 584 3663

Mr Gary Middleton, St. Swithins PR Tel. +44 (0) 207 929 4391

Mr. Nick Bealer, King & Shaxson Tel. +44 (0) 207 426 5986